RIO DE JANEIRO Ė State-controlled oil company Petrobras said on Monday that it planned to sell its 34 percent stake in Argentine gas company MEGA as part of the divestment program being carried out by Brazilís largest company.
Mega, which began operations in 2001, processes natural gas, producing ethane, propane, butane and other products.
In addition to Petrobras, which holds its stake through subsidiary Petrobras International Braspetro, MEGAís other shareholders are Spainís Repsol, with a 38 percent interest, and US-based Dow Chemical, which owns 28 percent of the gas processor.
MEGAís assets include a processing plant with a capacity of more than 40 million cubic meters per day of natural gas and a gas fractionation plant with a capacity of up to 5 million cubic meters per day.
In the natural gas derivatives market, MEGA has a 36.6 percent market share in propane, while it has a 33.1 percent share of the butane market and a 48.8 percent share of the ethane market.
Petrobras said in a statement that it was working to improve capital allocation and realign its portfolio.
The oil giant announced an ambitious asset divestiture program several years ago in response to the financial crisis it experienced due to the combination of low oil prices and a massive corruption scandal.
Petrobras expects to sell assets totaling $30 billion to $40 billion this year, or twice the original target set in the companyís divestiture plan, CEO Roberto Castello Branco said.