Brazils Petrobras said Tuesday that it plans to sell its fuels and lubricants business in Colombia, part of a broader plan to sell assets in order to optimize its capital resources.
In a teaser the national energy company laid out the process by which it plans to dispose of Petrobras Colombia Combustibles (Pecco) and its qualifications for companies wanting to bid on the business.
According to Petrobras, Pecco currently holds 3.5 percent of the Colombian lubricant market but is largely underutilizing a blending plant there. The business 5,300 metric tons of lubricants in 2019, but the blending plant, located in Bogota, has capacity to make 48,000 tons per year.
Lubes sales volumes have risen the past three years, from 3,900 in 2017. Lube sales are conducted through a chain 124 fuel stations and 11 distributors.
Pecco also claims 3 percent of Colombias retail fuels market. The overall business, which was formed in 2006, earned U.S. $7.1 million in 2019, the teaser said.
Petrobras described Colombia as having one of the best economic outlooks in South America, saying that its economy is growing steadily but that it presents lower risks than some of its troubled neighbors.
Petrobras said it will accept bids until April 3 from companies with net annual revenues, shareholder equity or assets of at least $100 million. Parties submitting valid bids will receive confidential packets with additional information later that month.