Shale is the third unit to have the sale contract signed this year by Petrobras. Operation of BRL 178,8 million will still be approved by regulatory bodies

The Brazilian oil giant Petrobras is divesting to invest more and better, focusing on new challenges, such as in the pre-salt deep and ultra-deep water fields and technological innovations in the remaining refining park. For this, the oil company signed with the company Forbes & Manhattan Resources Inc. (F&M Resources), a wholly owned subsidiary of Forbes & Manhattan Inc. (F&M), the contract for the sale of the Shale Industrialization Unit (SIX), in Paraná, for R$ 178,8 million (US$ 33 million).

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The Landulpho Alves (RLAM) and Isaac Sabbá (REMAN) refineries were also sold that month by the state-owned company.

SIX is the third among the eight Petrobras refining units that are in the process of being sold to have the contract signed. On 24/3/21, the sale contract for the Landulpho Alves Refinery (RLAM) was signed, in Bahia, and, on 25/8/21, the sale contract for the Isaac Sabbá Refinery (REMAN) was signed, in Manaus, in the Amazon.

According to Petrobras, the sale of SIX is in line with Resolution No. 9/2019 of the National Council for Energy Policy, which established guidelines for the promotion of free competition in the refining activity in the country, and is part of the commitment signed by the state-owned company with the CADE for the opening of the refining sector in Brazil. SIX's divestment process, approved by Petrobras' Board of Directors on this date, strictly followed the Divestment Systematic approved by the Federal Audit Court (TCU). The refinery's divestment project was approved by all levels of Petrobras' corporate governance.

This operation strengthens the strategy of repositioning the Refining activity at Petrobras

Rodrigo Costa, director of Refining at Petrobras highlighted the importance of signing the contract: “This operation strengthens the strategy of repositioning the Refining activity at Petrobras. This is an important step in fulfilling the commitment we signed with CADE, as this is the third contract for the sale of Refining units that we signed in 2021. Petrobras is focused and working to be among the best refiners in the world, in efficiency, product quality and performance of its operations”, highlights Costa.

When the disinvestment processes of the three refining units whose sales contracts have already been signed (RLAM, REMAN and SIX) are completed, Petrobras will be responsible for around 50% of the fuel market supply in the country. In addition to Petrobras and the new operators of these refineries, the market is also supplied by importers and producers of biofuels.

The sale of SIX reaffirms Petrobras' commitment to proceeding with its divestment plan

The operation reaffirms Petrobras' efforts to continue with its divestment plan. In Refining, the company defined the assets to be sold through strategic portfolio management. In this process, Petrobras is disinvesting to invest more and better, focusing on new challenges, such as in the pre-salt deep and ultra-deep water fields and technological innovations in the remaining refining park. The company is investing to transform resources into wealth, with gains reverted to society as a whole. Investments have systematically been greater than divestments, making Petrobras an even stronger company.

F&M President Stan Bharti points out that SIX will continue to be a significant contributor and employer in the region where it operates, supporting the well-being of the local community. “The company plans to dedicate all its attention and resources to guaranteeing the maintenance of the excellence of the current operation, in addition to exploring options for the future expansion of SIX's activities, while ensuring that it operates in accordance with the highest international standards, without interruption, for many decades. We will always support the local communities where projects are located, and Forbes looks forward to supporting the region surrounding SIX facilities.”

Petrobras employees who decide to remain with the company may choose to be transferred to other areas of the company

After the conclusion of the sale operation, Petrobras will continue to operate the unit through a service agreement for a transitory period (Transition Service Agreement – ​​TSA) while the buyer structures its processes and assembles its teams. This will happen under a service provision agreement, avoiding any operational interruption. Petrobras and F&M reaffirm their strict commitment to operational safety at SIX at all stages of the operation. Likewise, partnerships signed by SIX with the municipality of São Mateus do Sul will be maintained for the supply of limestone – used in paving the city's roads – and for the disposal of urban waste in areas of the unit that have already undergone mining.

Petrobras employees who decide to remain with the company may choose to be transferred to other areas of the company. Another possibility is joining the Voluntary Retirement Program, with a benefits package. Petrobras has been conducting divestment processes with transparency and respect for employees. The company discloses the main stages of the process internally and externally and provides full support to the professionals involved. No Petrobras employee will be dismissed as a result of the transfer of control of SIX to the new owner.

SIX, located in the municipality of São Mateus do Sul, in the State of Paraná, has a processing capacity of 5.800 tons/day of shale, focused on the production of fuel oil, naphtha, fuel gas, liquefied gas, sulfur and shale water , in addition to holding exploration rights for the shale mine.