Petrobras in talks with Raizen, BP for partnership in 'big' comeback on ethanol
Recasts headline and paragraph 1, adds quotes from CEO in paragraphs 2-3 and 10, Inpasa statement in paragraph 5, context in paragraph 6
By Rodrigo Viga Gaier and Fabio Teixeira
RIO DE JANEIRO, Nov 22 (Reuters) -Brazilian state-run oil company Petrobras is in talks with Raizen RAIZ4.SA, BP BP.L and Inpasa for a possible joint venture in ethanol, two sources told Reuters, as the firm's CEO aims big in a comeback to the sector.
Petrobras is in talks with four or five firms in the ethanol business, Chief Executive Magda Chambriard told analysts on Friday during a call to present the company's$111-billion strategic plan for 2025-2029.
"We have to do something big, compatible with the size of Petrobras, and we are talking to some market players," she said, without naming the firms.
Petrobras, BP and Raizen, which is the world's largest sugarcane processor, did not immediately respond to requests for comment.
Inpasa, Brazil's largest producer of ethanol from corn, declined to comment.
Petrobras' announcement would mark a comeback for the firm to the ethanol sector after having announced in its 2017-2021 strategic plan that it would no longer produce biofuels.
"We are returning to ethanol in order to be a relevant operator," said Chambriard, adding she saw no reason for the company not to be in it, as ethanol is the main competitor to gasoline, a fossil fuel set to lose market share, according to Petrobras.
The firm plans to invest around $2.2 billion in ethanol distilleries in the next five years, said director of energy transition Mauricio Tolmasquim.
Petrobras has not yet decided whether it would focus on ethanol made from corn or from sugarcane, according to him.
"The idea is to start big, not start from scratch," Tolmasquim said. "We are talking here about a process that can be quick, because it means associating with someone who is already big," he added.
In the presentation, CEO Chambriard also said Petrobras has been delivering its capital expenditure and production within its guidance since August.
Her statement comes after Petrobras lowered in August its planned investments this year to between $13.5 billion and $14.5 billion, from $18.5 billion planned previously.
"We have a lot of projects, we are expanding our operations in all segments," said Chambriard.
Reporting by Fabio Teixeira and Rodrigo Viga Gaier in Rio de Janeiro; Editing by Rod Nickel and Diane Craft
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