UPDATE 1-Brazil's Cosan says evaluating Petrobras assets on sale

jueves 7 de abril de 2016 14:20 GYT

(Adds details, quotes from chairman, context)

SAO PAULO, April 7 (Reuters) - Brazilian energy and logistics group Cosan SA Indústria e Comércio is evaluating opportunities that might arise from state-run oil company Petrobras's divestment program, said Cosan chairman Rubens Ometto on Thursday.

But Cosan, which owns 50 percent of Raízen, the world's largest sugar and cane-based ethanol producer, is not planning any investment on new mills in Brazil, despite the improved outlook for the sector, Ometto said.

"We have to look carefully, of course", said Cosan's chairman referring to the Petrobras divestment program.

"Petrobras has excellent assets. Everything that involves fuels distribution, power generation, natural gas, we are going to look at," Ometto told reporters after a seminar in Sao Paulo.

Cosan is partner with Royal Dutch Shell Plc in the Raízen venture and also controls Comgas, Brazil's largest natural gas distributor, and Rumo Operadora Multimodal , a large railway and port terminal operator.

Petrobras aims to sell $14 billion in assets this year to raise cash for core operations.

Ometto added that a possible gasoline price cut reported to be under discussion earlier this week would be an unwelcome government intervention in the company.

A cut on gasoline prices would likely hurt the profit margin for ethanol, since the biofuel competes directly with gasoline at the pump.

Ethanol mills suffered prolonged losses from 2010 to 2015 when the government kept gasoline prices artificially low to combat inflation. (Reporting by Aluisio Alves and Erick Noin; Writing by Marcelo Teixeira; Editing by Chizu Nomiyama and Meredith Mazzilli)