Petrobras may sell partial stake in Japan’s Nansei-Kyodo

Brazil’s state-run Petrobras is considering selling a partial stake in its wholly owned Japanese oil refiner Nansei Sekiyu KK, Kyodo news agency said, citing an interview with the company’s CEO, Jose Sergio Gabrielli.

The company will use the proceeds to invest in deep-sea oilfield development, Nansei Sekiyu President Osvaldo Kawakami was quoted as saying in the interview that Kyodo conducted in Brazil.

There was no mention of specifics on the size of the stake it may sell or the buyer, the report said. Nansei Sekiyu was not immediately available for comment.

Petrobras, which bought 87.5 percent of Nansei in 2008 for around 5.5 billion yen ($71 million) from Exxon Mobil group Japan refiner TonenGeneral Sekiyu , bought the remaining stake from Sumitomo Corp in October 2010.

Nansei Sekiyu, the only refiner on the island of Okinawa, in southwestern Japan, currently processes only light sweet crude from Asia and Africa but has considered adding secondary units to process a wider slate, including medium grade crude oil from Brazil’s pre-salt discoveries.

If Petrobras sold the stake, it could make it easier for the firm to decide on the Japanese refinery’s upgrade with financial support from a partner.