Petrobras (NYSE:PBR) is is in talks with 4-5 ethanol producers to create a possible joint venture, CEO Magda Chambriard told analysts on Friday, in a move that would mark the company's return to the biofuels segment after pulling out a few years ago.

"We have to do something big, compatible with the size of Petrobras, and we are talking to some market players," the CEO said, after the company earmarked $2.2B in ethanol spending in its new five-year business plan.

"We are returning to ethanol in order to be a relevant operator," Chambriard said, adding she saw no reason for the company not to be in it, as ethanol is the main competitor to gasoline.

According to Reuters, Petrobras (PBR) is in talks with BP (BP); Raizen, the world's largest sugarcane processor; and Inpasa, Brazil's largest producer of ethanol from corn.

Bloomberg also mentioned NYSE-listen Cosan (CSAN) as a potential JV partner; the stock ended +5.2% in Friday's trading.

"The idea is to start big, not start from scratch," energy transition director Mauricio Tolmasquim said. "We are talking here about a process that can be quick, because it means associating with someone who is already big."