Petrobras plans to sell a 60% operating stake in four oil refineries as part of plans to sell down its dominant position in Brazil’s fuel market.
The sales, which include the newly built Refinaria do Nordeste, represent what is expected to be the first move in a restructuring of Brazil’s refining sector. Currently, Petrobras operates 98% of Brazil’s refining capacity.
The company’s plans to retreat from the refining sector were announced in mid-216 and it has said it will refocus its investments on exploration and production.
In a filing with local stock regulators, the company says: ‘The model outlines the creation of two subsidiaries, one combining assets in the northeast region and the other combining assets in the south region. Petrobras intends to sell 60% of its participation in each of these new companies.’
The northeast cluster includes the Refinaria Landulpho Alves (RLAM) in Bahia state, and the Refinaria do Nordeste (rnest). They both process 430,000 barrels per day.
The cluster includes 770km of oil pipelines linking the refineries with terminals and distribution points. Storage and transfer capacity will also be included, comprising 5.4 million barrels of capacity via the company’s stake in terminals at Candeias, Itabuna, Jequie and Madre de Deus in Bahia state and the Suape terminal in Pernambuco.
The south cluster comprises Refinaria Presidente Getulio Vargas (Repar) and Refinaria Alberto Pasqualini (Refap). This cluster includes 736km of pipeline as well as rights to seven terminals with 6.1 million barrels of crude, 3.3 million barrels of oil products and 100,000 barrels of LPG capacity.