Abpip files action with CADE for more transparency in the divestment project for Petrobras refineries

After signing a contract with CADE to carry out the sale of its refineries in Brazil in 2019 and failing to meet the final deadlines of the divestment process, Petrobras now suffers an accusation of lack of transparency in the project by Abpip.

The Brazilian Association of Independent Oil and Gas Producers (Abpip) has an open case at the Administrative Council for Economic Defense (CADE) against state-owned Petrobras, questioning the company's lack of transparency in the sales process of its Brazilian refineries. The state-owned company's divestment project has been undergoing lengthy deadline changes and the association believes that the fuel market is being harmed by the lack of commitment.

Divestment project for Petrobras refineries in Brazil is put into action at CADE by Abpip due to lack of transparency by the state-owned company

The fuel market in Brazil has become even more unstable this past week, as CADE received a protocol of action from Abpip for an analysis of the constant extension of deadlines for the divestment project for Petrobras refineries in Brazil.

The association believes there is a lack of transparency and a negative impact of delays in the fuel market in Brazil and requests measures to mitigate the problem.

Petrobras signed a Term of Commitment to Cessation of Conduct Related to the Oil Refining Market (TCC) with CADE in 2019 and committed to carry out a divestment project in its Brazilian refineries, thus granting eight structures to the private sector. They would be: Abreu e Lima Refinery (RNEST), Shale Industrialization Unit (SIX), Landulpho Alves Refinery (RLAM), Gabriel Passos Refinery (REGAP), Presidente Getúlio Vargas Refinery (REPAR), Alberto Pasqualini Refinery (REFAP), Refinery Isaac Sabba (REMAN); Lubricants and Petroleum Derivatives of the Northeast (LUBNOR).

In addition, CADE and Petrobras set a project completion date for December 31, 2021, and the state-owned company should periodically publish reports and data on fuel prices at refineries to ensure more transparency throughout the process. structure sales.

However, since the beginning of the process, four new agreements between Petrobras and CADE have already been approved for the extension of the project's deadlines, which raised questions from Abpip regarding the transparency of the process.

Abpip requests provisional measures to control the fuel market in action at CADE regarding the transparency of the sale of refineries by the Brazilian state-owned company

The Abpip document sent to CADE requests the creation of provisional measures that contain the advance of extensions of deadlines and control the fuel market in Brazil, which is currently experiencing high instability.

In addition, the association stated that there is a lack of transparency in the divestment process of the state-owned company and that the Brazilian fuel market is now suffering the impacts of the lack of information and the non-completion of the process of selling the refineries.

The main problem caused by the constant extensions in the process, according to Abpip, is a monopolized control of the fuel market by Petrobras in the country, preventing competitiveness and a consequent reduction in the price of products in this segment.

In addition, the Executive Secretary of Abpip, Anabal Santos Jr, commented that “It is essential that the company publicize and provide transparency to the criteria and calculation methodology used for charging for said services and refrain from charging for services that are not performed or that are not were requested by its independent customers” and requested more publicity regarding the decisions of CADE and Petrobras in the process of selling the Brazilian refineries.