Petróleo Brasileiro SA (Petrobras) has concluded the final round of the binding phase for the sale of its 333,000-b/d Refinaria Landulpho Alves (RLAM) refinery in the Recôncavo Baiano region of Bahia as part of the operator’s ongoing program to divest most of its Brazilian refining and related logistics assets (OGJ Online, Dec. 3, 2020; June 25, 2020; Mar. 20, 2020).
Mubadala Capital, the investment arm of Mubadala Investment Co., presented the best final offer for the RLAM refinery and related assets—including four storage terminals and a set of pipelines totaling 669 km—in an amount of $1.65 billion, Petrobras said on Feb. 8.
While the final binding phase is now completed, signing of the purchase and sale agreement with Muadala Capital remains subject to approval of relevant corporate bodies, Petrobras said without disclosing a projected timeline for closing the transaction.
Petrobras separately confirmed it also has received binding proposals for the sale of its 208,00-b/d Refinaria Presidente Getulio Vargas (REPAR) refinery and related assets—including five storage terminals and a 476-km set of pipelines—in Paraná. Since conditions of the presented binding proposals fell short of Petrobras' economic-financial evaluation for the sale, however, the operator said it decided to close the process and will start a new competitive process for divestment of the refinery “in due time.”
Petrobras also said the competitive sales process remains under way for the outstanding refining assets included in the divestment program, including:
- The 208,000-b/d Refinaria Alberto Pasqualini (REFAP) refinery—with assets that include two storage terminals and a set of pipelines totaling 260 km—in Rio Grande do Sul.
- The 46,000-b/d Isaac Sabbá refinery (REMAN)—including a storage terminal—in Manaus, Amazonas.
- The 8,000-b/d Lubrificantes e Derivados de Petróleo do Nordeste (LUBNOR) refinery in Fortaleza, Ceará, which is one of the national leaders in asphalt production, as well as the only plant in Brazil to produce naphthenic lubricants.
- The 6,000-b/d Unidade de Industrialização do Xisto (SIX) unit—including a mine in one of the largest oil shale reserves in the world and a shale processing plant—in São Mateus do Sul, Paraná.
- The 166,000-b/d Refinaria Gabriel Passos (REGAP) refinery—including a set of pipelines of more than 720 km—in Betim, Minas Gerais.
- The 130,000-b/d Refinaria Abreu e Lima (RNEST) refinery—which has the potential to double its capacity 260,000 b/d with startup of a second processing line and includes both a terminal and a 101-km set of short pipelines—in Pernambuco.
As of Jan. 19, Petrobras said it had received a binding proposal from and was in the negotiation phase with Ultrapar Participações SA for REFAP, with binding offers received and ongoing negotiations with unidentified parties also under way for REMAN, LUBNOR, and SIX.
The operator said it expects to receive binding offers for RNEST and REGAP sometime during first-quarter 2021.
