Petróleo Brasileiro (Petrobras) has initiated sale of 100% of its operations in Paraguay which includes stakes in Petrobras Paraguay Distribución (PPDL UK), Petrobras Paraguay Operaciones y Logística (PPOL), and Petrobras Paraguay Gas (PPG).

Through the three companies, Petrobras operates in the distribution and trading of fuels, LPG and lubricants segments. Its business in Paraguay features a network of 197 service stations and 113 convenience stores.

Petrobras also has a presence in the Paraguayan aviation sector through operations in three airports. As one of the major fuel distributors in Paraguay, Petrobras also operates in the large customers sector.

In the logistics segment, Petrobras is the owner of a distribution terminal located in Villa Elisa.

Petrobras stated: “The Potential Transaction offers to the interested parties a unique opportunity to obtain access or strengthen their presence in one of the most promising markets in Latin America through an international benchmark platform.”

The company calls itself a leading player in the fuel distribution market in Paraguay with a comprehensive portfolio of products. Overall, Petrobras has a market share of nearly 18% in the retail segment in the country, making it the second largest as far as automotive fuel volume is concerned.

For the Brazilian state-run oil company, the planned sale of its Paraguayan business is part of an ongoing divestment plan to raise about $21bn by the end of next year.

Last week, the company had initiated the sale process of 100% of the rights to develop and monetize an offshore Brazilian oil field dubbed as the Maromba oil field. Petrobras holds 70% stake in the oil field located southeast in the Campos Basin while the rest of the stake is held by Chevron.  

Prior to that in mid-May, Petrobras had put up the Azulão field in Brazil as part of the same divestment strategy.