Agreement Between Petrobras and Cade Provides for the Sale of Eight Oil Refineries

Proposed Agreement by Petrobras Ends Investigation by the Council Regarding Alleged Economic Abuse by the State-Owned Company in the Oil Refining Market.

Petrobras signed a Commitment Term of Cessation (TCC) with the Administrative Council for Economic Defense (CADE) on Tuesday, June 11. The state-owned company must sell eight oil refineries, including fuel transportation assets, for the administrative inquiry of the agency investigating abuse of position to be suspended.

The measure aims to stimulate competition in the national refining market, which has so far been almost entirely explored by Petrobras, through the entry of new players who would attract investments to the sector.

The agreement determines the sale of the following units:

• Abreu e Lima Refinery in Pernambuco;
• Shale Industrialization Unit and Presidente Getúlio Vargas Refinery, both in Paraná;
• Landulpho Alves Refinery in Bahia;
• Gabriel Passos Refinery in Minas Gerais;
• Alberto Pasqualini Refinery in Rio Grande do Sul;
• Isaac Sabbá Refinery in Amazonas;
• Northeast Lubricants and Oil Derivatives Refinery in Ceará.

Currently, the company holds a 98% market share in this segment, with competition primarily coming from imports and companies with low representation in Brazilian territory.

The commitment stipulates that the so-called “divestment” of the refineries must be completed by December 31, 2021, considering the prohibitive circumstances provided in the term.

Operations must be notified to CADE for a detailed competitive analysis of the acquisition, as long as submissions are legally required. With information from CADE’s Press Advisory.

Learn about the Petrobras companies authorized for sale by the STF this Friday, June 7