Sale of Abreu e Lima Refinery fails

Petrobras announced this Wednesday (25/8) that those interested in the sale of the Abreu e Lima Refinery (RNEST) formally declined to submit a binding proposal for the purchase of the refinery. The company is now analyzing the next steps for the unit, built during the government of former president Lula.

“Thus, the company is carrying out the internal procedures to close the sale process in progress and will evaluate its next steps”, informed the company.

RNEST has the capacity to process 130,000 barrels of oil per day (train 1), with a focus on diesel production (70%). It is designed to produce diesel with low sulfur content (S-10). Started operation in 2014.

According to data from the ANP, it was responsible for processing 8.841 million barrels of oil in the first quarter of 2021, around 5.42% of all the cargo processed in the country in the period. The daily average was 99 thousand barrels/day.

The refinery has distillation units; delayed coking; diesel and naphtha hydrotreatment, hydrogen generation and others.

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Sale in Amazonas

Earlier, Petrobras announced the sale of Isaac Sabbá Refinery (REMAN) for Ream Participações, a corporate vehicle owned by the partners of Atem’s Distribuidora de Petróleo, for US$ 189.5 million.

The distributor will pay US$ 28.4 million this Wednesday, with the signing of the contract, as a guarantee; and (US$161.1 million at closing, subject to contractual adjustments.

“Until the conditions precedent are met and the transaction is closed, Petrobras will normally maintain the operation of the refinery and all associated assets. After the closure, Petrobras will continue to support Atem in Reman’s operations in order to preserve safety and operational continuity for a specified period, under a transitional contract,” the company said in a statement.

Reman, located in Manaus, Amazonas, has a processing capacity of 46 thousand barrels/day and its assets include a storage terminal.

Second refinery sold

Reman is the second refinery that Petrobras announces the sale. In March, THE Petrobras announced that its Board of Directors approved the sale of the Landulpho Alves Refinery (RLAM) and its associated logistical assets, in Bahia, for the Mubadala Capital for $1.65 billion.

Today is a very happy day for Petrobras and Brazil. It is the beginning of the end of a monopoly in an economy still with monopolies in various activities. RLAM’s divestment contributes to improving capital allocation, reducing the still high indebtedness and to starting a process of reducing the risks of political interventions in fuel pricing, which caused so much damage to Petrobras and to the Brazilian economy itself. The transaction undoubtedly satisfies the best interests of Petrobras and Brazil shareholders”, said Roberto Castello Branco, president of Petrobras, who was replaced by General Luna e Silva.

Interference risk

The risk of interference in fuel prices is a factor that has delayed the sale of Petrobras refineries, said Fernando Borges, executive director of Exploration and Production at the company, in an interview with epbr. Review the broadcast in its entirety

The executive argues that it is necessary to preserve the competitiveness of the oil and gas industry, which includes freedom in pricing, but also the maintenance of the current local content policy and government participation, which includes taxation and royalties based on the production value.

“It is one of the risks that is not making it easy for Petrobras to sell its refineries. This history of interference in Brazil is long and, when there is an alternation of government, there may be another one who thinks that controlling prices is the solution”, he said.

more deadline

The Administrative Council for Economic Defense (Cade) extended for the second time, in May, the deadlines for the Petrobras sell yours refineries and comply with the agreement signed in 2019 by the company.

The decision also gives more time for the sale of transport and distribution companies. natural gas, which have been started, but no deals have been announced so far.

the new deadlines

  • April 30 for the sale of Nova Transportadora do Sudeste (NTS) – referring to the remaining 10% stake;
  • June 30 to settle the holdings in the distributors, either via Gaspetro or individually;
  • July 31, 2021 to sell 1st package refineries – Isaac Sabbá (Reman, in Amazonas); Lubnor (of lubricants, in Ceará); and Alberto Pasqualini (Refap, in Rio Grande do Sul)
  • October 30 for the sale of SIX (shale processing, in Pará); Gabriel Passos (Regap, Minas Gerais); and Abreu e Lima (Rnest, Pernambuco);
  • December 31 for the sale of Presidente Getúlio Vargas (Repar, in Paraná);

The deadline for completion and completion of sales remains the same, set at December 31, 2021.


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