Petrobras begins binding phase for Pasadena refinery sale

Petroleo Brasileiro SA (Petrobras) has started the binding phase of its earlier announced proposal to sell subsidiary Pasadena Refining Systems Inc.’s (PRSI) refinery in Pasadena, Tex., in compliance with the Brazilian operator’s divestments portfolio and a divestment plan from Brazil’s Federal Court of Accounts, or Tribunal de Contas da Uniao (TCU) (OGJ Online, Feb. 7, 2018; May 16, 2017).

At this stage of the project, process letters are issued to potential undisclosed buyers qualified in the previous phase with instructions about the divestment process, including the guidelines to conduct due diligence and submit binding offers, Petrobras said on May 4.

Petrobras formally is seeking a qualified buyer for affiliate Petrobras America Inc.’s (PAI) interest in the entire Pasadena refining operations system, the sale of which includes PAI’s stake in PRSI, PRSI Trading LLC (PRST), and PRSI Real Property Holdings LLC (REAL).

Alongside the 110,000-b/d Pasadena refinery, the transaction will include sale of 5.1 million bbl of oil and products storage capacity, an associated marine terminal and logistics system, existing inventory, and land on the Houston Ship Channel usable for potential future expansion.

The proposed sale follows PAI’s determination after a comprehensive analysis that the Pasadena system does not align with Petrobras’s strategic focus but may have higher value for the right investor.

Contact Robert Brelsford at [email protected].