Petrobras advances sale of downstream refining, logistics assets

Petroleo Brasileiro SA (Petrobras) has initiated the nonbinding phase related to the first leg of the operator’s previously announced plan to divest its Brazilian assets in downstream and associated logistics (OGJ Online, June 12, 2019).

As part of the nonbinding phase—which includes Refinaria Abreu e Lima (RNEST) in Pernambuco, Refinaria Landulpho Alves (RLAM) in Bahia, Refinaria Presidente Getulio Vargas (REPAR) in Parana, and Refinaria Alberto Pasqualini (REFAP) in Rio Grande do Sul, as well as their corresponding integrated logistics assets—qualified potential buyers will receive a descriptive  memorandum with more detailed information about the assets, as well as instructions on the divestment process, including guidelines for preparing and submitting nonbinding proposals, Petrobras said.

Teasers for the second phase of the downstream divestment plan—which will include Refinaria Gabriel Passos (REGAP), Refinaria Isaac Sabba, Unidade de Industrializacao do Xisto (SIX), and Refinaria Lubrificantes e Derivados do Nordeste (Lubnor), as well as their corresponding logistics assets—will be released later this year, Petrobras said in late June.

The proposed refinery divestments follow Petrobras’s completed sale of its Pasadena Refining System Inc.—including the 110,000-b/d refinery in Pasadena, Tex.—and PRSI Trading LLC businesses to Chevron USA Inc. in May (OGJ Online, Jan. 31, 2019).

Alongside repositioning the company’s portfolio to higher-yielding assets, the refineries’ divestment projects also will allow for the increase in competitiveness and transparency of the downstream business in Brazil in line with the National Petroleum, Natural Gas, and Biofuels Agency of Brazil’s position and recommendations of the country’s Administrative Council for Economic Defense (OGJ Online, May 2, 2019).

Contact Robert Brelsford at [email protected].