Petrobras to shed Texas refinery

Petroleo Brasileiro SA (Petrobras) has added the proposed sale of subsidiary Pasadena Refining Systems Inc.’s (PRSI) 100,000-b/d refinery in Pasadena, Tex., to a revised divestments portfolio recently approved by the company’s executive board following a mid-March decision on the divestment plan from Brazil’s Federal Court of Accounts, or Tribunal de Contas da Uniao (TCU).

Petroleo Brasileiro SA (Petrobras) has added the proposed sale of subsidiary Pasadena Refining Systems Inc.’s (PRSI) 100,000-b/d refinery in Pasadena, Tex., to a revised divestments portfolio recently approved by the company’s executive board following a mid-March decision on the divestment plan from Brazil’s Federal Court of Accounts, or Tribunal de Contas da Uniao (TCU).

In order to comply with procedures as set forth by Petrobras’s 2017-21 strategic plan as well as TCU’s Mar. 15 ruling on the company’s revised divestment methodology, any potential opportunities to sell the refinery will individually be submitted to the company’s executive board, and if approved, will be disclosed to the market in a timely manner, according to separate releases from Petrobras and Brazilian government.

Any preliminary information made publicly available on potential transactions for the refinery’s sale, however, remains subject to change depending on current market conditions at the time of deal, ongoing portfolio analysis, development of negotiations, and requisite approvals during the transaction process, Petrobras said.

Without disclosing further details regarding the decision to add the Pasadena refinery to its list of disposable assets, Petrobras did confirm the sale aligns with its 2017-21 strategic plan, which aims to reduce the company’s operational risk and improve its overall financial performance via an expansion of partnership and divestment opportunities.

The newly approved partnership and divestment portfolio now seeks to raise $21 billion in 2017-18, up from the previously estimated target of $19.5 billion under the company’s original 2017-21 strategic plan issued in September 2016.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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