Petrobras headquarters in downtown Rio de Janeiro. Credit: Eric and Christian/Wikimedia Commons.

Brazilian oil company Petrobras intends to sell its 34% stake in Argentinian natural gas processor Mega.

In a statement, Petrobras said that it has taken up a divestment programme under the leadership of new chief executive Roberto Castello Branco.

Mega owns a gas separation plant in the Loma La Lata Field, which can process up to 40 million cu m/d. It also operates a fractioning plant at the Bahia Blanca petrochemicals complex, which can process five million cu m/d into butane, ethane and propane.

The two plants are linked by a 600km, 12in-diameter pipeline.

Petrobras said: “Mega has one of the biggest natural gas-processing installations in Argentina.”

“Studies to increase the plants’ capacity and gas-supply pipelines are already underway.”

It said that the company is essential to Argentina’s petrochemicals infrastructure.

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The company also has plenty of potential, given Argentina’s outlook for increase gas production from the Vaca Muerta shale formation.

It said: “Studies to increase the plants’ capacity and gas-supply pipelines are already underway.”

Commencing operations in 2001, the plants have been constructed using the latest technology and efficiency equipment.

Argentina’s YPF has a 38% stake, while Dow Chemical retains the remaining 28% share, Petrobras said.

According to Petrobras, companies or investors keen on participating in the sales process should have had at least $200m in net revenue or assets under management in 2018.

Petrobras is updating its $26.9bn divestment programme, announced last year as part of the 2019-2023 investment plan, including an announcement in March that Petrobras will sell a 100% stake in eight refineries totalling a daily capacity of 1.1 million barrels.

The company’s 2020-2024 investment plan is expected to be released in the fourth quarter.

The divestment programme is intended to refocus the company on its core area of deep-water exploration and production, particularly in the subsalt frontier offshore Brazil.