Robert Brelsford
Downstream Technology Editor
Petroleo Brasileiro SA (Petrobras) has announced plans for the process to divest its majority equity interest in refining and logistics operations in the northeastern and southern regions of Brazil.
Petrobras has started the disclosure stage of two divestment opportunities under a model that provides for creation of two subsidiaries—one for each of the geographical regions—upon creation of which the company intends to sell 60% of its equity interest in each, the operator said on Apr. 27.
Petrobras has announced plans for the process to divest its majority equity interest in refining and logistics operations in the northeastern and southern regions of Brazil. Photo from Petrobras.
The proposed Northeastern subsidiary will consist of two refineries, including the 333,000-b/d Landulpho Alves (RLAM) refinery in Bahia state and the 130,000-b/d (to be expanded to 260,000-b/d) Abreu e Lima (RNEST) refinery in Pernambuco state, as well as the following associated logistics assets (pipelines and terminals) operated by Petrobras Transporte SA (Transpetro):
• Two marine terminals (Madre de Deus, Suape).
• Three inland terminals (Candeias, Itabuna, and Jequié).
• Two oil supply pipelines.
• One polyduct and 35 refined products pipelines connecting refineries to distribution terminals and distribution bases (OGJ Online, July 25, 2016).
The proposed Southern company also will include two refineries, including the 207,000-b/d Alberto Pasqualini (REFAP) refinery in Rio Grande do Sul state and the 207,000-b/d Presidente Getúlio Vargas (REPAR) refinery in Paraná state, as well as the following Transpetro-operated associated logistics assets:
• Four marine terminals (Paranaguá, São Francisco do Sul, Tramandaí, and Niterói).
• Three inland terminals (Guaramirim, Itajaí, and Biguaçu).
• Two oil supply pipelines.
• Two polyducts and 4 refined oil pipelines connecting refineries to distribution terminals and distribution bases.
The proposed partnerships come as part of Petrobras’s strategic repositioning in refining, transportation, and logistics segments, and are in line with the operator’s strategic plan as well as its business and management plan, which provides for establishment of partnerships and divestments as one of the main initiatives for risk mitigation, value addition, knowledge sharing, strengthening of corporate governance, and improving the company’s financiability, Petrobras said.
The operator will begin distribution of a confidential information memorandum (CIM) for both opportunities on May 21 to prospective purchasers who have executed a confidentiality agreement (CA), with a deadline of June 18 for potential buyers to execute the CA and obtain access to the CIM.
Further details regarding the proposed partnerships and future phases for each of the divestment projects can be found at Petrobras’s investor relations website.
Earlier this year, Petrobras confirmed it is moving forward with a proposal to sell subsidiary Pasadena Refining Systems Inc.’s (PRSI) 110,000-b/d refinery in Pasadena, Tex.—including 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—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 (OGJ Online, Feb. 7, 2018).
