A $13.7 billion divestment plan announced Monday by Brazil’s Petrobras will most likely focus on selling minority stakes in assets throughout the company’s operations.
The embattled company plans to sell the stakes over the next two years to raise cash amid an ongoing corruption scandal that has already landed three former executives in jail.
State owned Petrobras is currently the most indebted oil company in the world with about $110 billion in net debt.
A source close to Petrobras told Reuters the company is not willing to sell the stakes “at any price” despite concern over oil price volatility.
“It’s not the best moment, but it’s the moment that the company needs to meet its goal. It won’t sell just to sell. It will only be done if it will be a good deal. Bad deals won’t be done,” the source said.
Petrobras has not yet disclosed the assets it plans to sell stakes in but said about 30 percent of the sales will come from its exploration and production unit, 30 percent will come from refining and supply and about 40 percent will come from its gas and energy business.
Last week ratings agency Moody’s downgraded the company’s bonds to a junk rating citing concerns about “corruption investigations and liquidity pressures.”
The scale of the corruption is still unknown although Brazilian authorities have claimed kickback and bribery schemes could have diverted anywhere between $3.7 billion to $28 billion from the company.
Former Petrobras CEO Maria das Graças Foster has said the company could face write downs of up to $31 billion for alleged bribery and kickback schemes tied to company contracts, a figure recently appointed CEO Aldemir Bendine disputes.