The Federal Supreme Court of Justice, which is Brazil's highest appellate court for non-constitutional questions of federal law, has authorised the Brazilian national oil and gas company Petrobras to create subsidiaries to sell 8 refineries, accounting for nearly half of its current refining capacity. The Brazilian Congress was requesting an injunction from the court to suspend the privatisation process.
Petrobras intends to sell eight refineries with a total refining capacity of 1.1 mb/d. The eight refining assets included in the sale correspond to the Refinaria Abreu e Lima (RNEST) in Bahia, Refinaria Landulpho Alves (RLAM) in Pernambuco, Refinaria Gabriel Passos (REGAP) in Minas Gerais, Refinaria Presidente Getúlio Vargas (REPAR) in Parana, Refinaria Alberto Pasqualini (REFAP) in Rio Grande do Sul, Refinaria Isaac Sabbá (REMAN) in Amazonas, Unidade de Industrialização do Xisto (SIX) in Parana, and Lubrificantes e Derivados de Petróleo do Nordeste (LUBNOR) in Ceara.
In March 2020, Petrobras decided to postpone the deadline for bidding offers for eight of its refineries due to coronavirus prevention measures. Part of a broader US$26.9bn divestment program, the privatisation of refineries is expected to be achieved by the end for 2020. More than 20 companies signed confidentiality agreements with Petrobras to review the sales.
Interested in World Refineries?
Use this powerful business intelligence tool to assess current and future production capacities of oil products by country and by zone. Gain insight into companies' asset portfolios and future trends for refined oil production capacities, giving you the ultimate edge for strategy and decision-making.