Petrobras has decided to postpone the deadline for bidding offers for eight of its refineries due to coronavirus prevention measures. The Brazilian national oil and gas company intends to give more time to investors to conduct due diligence.
In November 2019, the company started the final phase of the privatisation process of four refineries, as the company has begun to receive binding bids. As part of an antitrust deal with the Brazilian Ministry of Justice, the company has been forced to sell 4 of its 13 refineries, accounting for a half of Brazil 2.1 mb/d refining capacity. It includes the 130,000 bbl/d Abreu e Lima (RNEST) refinery in Pernambuco, the 333,000 bbl/d Landulpho Alves (RLAM) refinery in Bahia, the 208,000 bbl/d Presidente Getúlio Vargas (REPAR) refinery in Paraná and the 208,000 bbl /d Alberto Pasqualini (REFAP) refinery in Rio Grande do Sul.
In February 2020, Petrobras started the binding phase related to the privatisation of another 3 refineries. Refining assets to be sold include the 46,000 bbl/d Isaac Sabbá (REMAN) refinery in Manaus (Amazona), the 8,000 bbl/d Lubricants and Oil Derivatives of the Northeast (LUBNOR refinery) in Fortaleza (Ceará), and the 6,000 bbl/d Shale Industrialization Unit (SIX) refinery in São Mateus do Sul (Paraná). In addition, Petrobras is also selling the 166,000 bbl/d REGAN refinery in Betim (Minas Gerais)
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.
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