Petrobras to buy Japan refinery from ExxonMobil

Petrobras has entered into an agreement with TonenGeneral Sekiyu Kabushiki Kaisha to buy an 87.5% interest in the Japanese company Nansei Sekiyu Kabushiki Kaisha for about $50 million.

By OGJ editors
HOUSTON, Nov. 13 -- Petroleo Brasileiro SA (Petrobras) has entered into an agreement with ExxonMobil subsidiary TonenGeneral Sekiyu Kabushiki Kaisha to buy an 87.5% interest in the Japanese company Nansei Sekiyu Kabushiki Kaisha (NSKK) for about $50 million.

The acquisition includes a 100,000 b/d refinery that processes light crude oil and high quality products, an oil and products terminal with storage capacity of 9.6 million bbl, three piers with capacity to receive product vessels of up to 97,000 dwt, and a monobuoy for very large crude carriers of up to 280,000 dwt.

Petrobras plans to use the terminal to boost its distribution of biofuels and to complement oil exports to Japan and elsewhere in Asia.

With this purchase, Petrobras will start refining operations in Asia for the first time. The agreement is in alignment with the company's strategic plan to expand refining capacity abroad.

The remaining 12.5% interest in NSKK is held by Japan's Sumitomo Corp.

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