Nathan Walters, Argus
RIO
EnergiesNet.com 08 02 2022
Petrobras is “positively surprised” by the interest in the three refineries that have been put back up for sale after a first attempt failed to attract investors. The new scenario reflects the change in the refining market following Russia’s invasion of Ukraine.
The increase in global interest for refining assets contributed to the decision to resume at the end of June the process of selling the refineries Abreu e Lima (230,000 b/d), in Pernambuco; Alberto Pasqualini (208,000 b/d), in Rio Grande do Sul; and Presidente Getúlio Vargas (208,000 b/d), in Paraná, said the Chief Financial and Investor Relations Officer of the state company, Rodrigo Araujo.
Petrobras has already received several expressions of interest in the assets, Araujo said. The sales processes of the refineries were suspended in 2021 due to the absence of sufficient binding offers.
These units put back up for sale are part of a company plan to reduce refining capacity by about 1 million b/d, amid the fuel price crisis that has raised criticism from Brasília against Petrobras.
The company’s pricing policy based on the foreign market is seen as essential for asset sales, as investors are wary of a possible return of government interference in the state-owned company’s pricing strategy. Last week, the board of directors added a new layer of oversight to the pricing policy, in another effort to ensure independence in the face of intense political pressure.
Of the eight refineries initially put up for sale in the wake of an agreement with the Administrative Council for Economic Defense (Cade), Petrobras only managed to sell the Mataripe refinery (333,000 b/d) in Bahia for $1.8 billion to Abu Dhabi’s Mubadala fund.
Three other refinery sale agreements were signed: one for $33 million with the Canadian bank Forbes for the SIX refinery (6,000 b/d); another for $189.5 million with the distributor Atem for Isaac Sabbá (46,000 b/d) and another agreement for $34 million with the Grepar Participações fund for Lubnor (8,000 b/d). The negotiations for the asset Gabriel Passos (166,00 b/d) are in progress, according to executives of the state company.
The possible election of former president Luiz Inácio Lula da Silva, who leads the polls, may also contribute to accelerate the sale processes. Lula is opposed to divestitures of refineries, but contracts signed before the presidential inauguration in January 2023 are not at risk of being challenged.
If all eight refineries are sold, Petrobras’ share of the domestic refining pool would fall from just over 90pc to around 50pc.
Translated by Elio Ohep. Editor EnegiesNet.com
argusmedia.com 08 01 2022.
