Petrobras extends refinery sale deadline

Brazilian energy company Petrobras said July 30 that it was again extending the deadlines for the sale of its refineries, part of a broad-based divestment strategy.

The company had been required to agree sales deals for the 208,000 barrel/day Alberto Pasqualini refinery (REFAP), 46,000 b/d Isaac Sabba refinery (REMAN) and 8,000 b/d Lubnor refinery by July 31. But it said it had actioned an addendum to a previous agreement with the Administrative Council for Economic Defence (CADE) to delay the deadlines until August 31 for REMAN and October 30 for REFAP and Lubnor.

Petrobras also has until October 30 to sign agreements to divest the 6,000 b/d SIX shale processing unit, the 166,000 b/d Gabriel Passos refinery (REGAP) and the 130,000 b/d Abreu e Lima refinery (RNEST), and until December 31 for the 208,000 b/d Preisdente Getulio Vargas refinery (REPAR).

“The sale process of these assets is subject to evaluation by Petrobras' internal governance bodies,” the company, known formally as Petroleo Brasileiro, said.

Petrobras has so far only arranged terms for the sale of one of its refineries. In July last year it agreed to sell the 333,000 b/d Landulpho Alves refinery to Abu Dhabi investment fund Mubadala for $1.65bn. But the deal is yet to be closed.

Petrobras is on a major divestment programme, seeking buyers for various upstream, midstream and downstream assets to reduce its leverage and raise capital for investing in its deepwater offshore fields.

Petrobras in late July agreed to sell a 51% interest in gas distribution holding Gaspetro for 2.03bn reais ($400mn) to Compass, a subsidiary of Brazilian energy group Cosan. Last week,  the company also signed contracts on the sale of interests in two power generation companies to local firm Global Participacoes em Energia (GPE) for 160.3mn reais ($31.5mn).