In Brazil, El Periodico de Energia reports that contrary to O Globo’s report over the weekend that Petrobras is in negotiations with Cosan to invest in the company’s sugarcane-based ethanol production, Petrobras has denied those conversations, following a request for clarification from the Securities Commission (CVM) on information published by the Brazilian press.
The regulator asked the state agency for explanations after the newspaper O Globo claimed that Petrobras was analyzing becoming a partner or acquiring assets of Raízen – a company between the Brazilian logistics company Cosan and the British multinational Shell – which would mark its return to the ethanol business.
In a statement to the market, the Brazilian state said that “there is no project or study of investment in ethanol or distribution with the Raízen.”
The company added that its distribution strategy will follow the provisions of existing contracts and that decisions on new investments are based on “detailed analyses and technical studies, in accordance with applicable governance practices and internal procedures.”