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Company considers refining partnership with Petrobras

Written by Paulo Nogueira
Published 30/10/2018 às 22:02

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Petrobras Refinery

Ometto informed that the possible privatization process “will be good for the country and good for Petrobras

The company Cosan is evaluating cooperation with Petrobras in refining. This company is a private group from Brazil, with businesses in several areas in Brazil. Active in the production of ethanol and distribution of fuels, it communicated yesterday (30) through its Chairman of the Board of Directors, Mr. Rubens Ometto the interest in this partnership. The company is targeting new partnerships, but this situation will depend on how the oil company intends to sell stakes in its refineries in the country.

The company interested in the partnership has a strategic alliance agreement with Shell for a common commercial objective called Joit Venture, where each company has a 50% stake each in Raizen, the largest sugar producer in the world and one of the main fuel distributors in the world. Brazil. The president of Cosan did not clarify whether the joining forces with Petrobras is an initiative of the company itself or of the agreement (Joint Venture) with Shell.

Jair Bolsonaro's advisors reported that they intend to sell several state-owned companies as a way to increase collections and cut the government's debt. Even before the election, Petrobras had already announced its willingness to sell its stake in refineries.

The company is focused on energy and logistics and could participate in the sale of Petrobras refineries depending on the model of the operation details, completes Ometto. The company already has refining assets in Argentina, and having a stake here could be a way to stay on track.

Regarding ethanol, the new sugarcane harvest in Brazil only starts in April next year. For mills to continue focusing on ethanol production, the price of sugar has to increase significantly. Raizen overlooks expanding cane processing capacity in the country and the joint venture needs to focus on improving capacity utilization.

Raizen has the capacity to process 70 to 72 million tons of sugarcane per cycle and is currently processing between 60 and 62 million tons, that is, 10 million less – completes the executive.

This partnership will be good for Petrobras and the government, and we hope it will also be positive for the market.

https://clickpetroleoegas.com.br/petrorio-compra-frade-japao-petroleo/

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Paulo Nogueira

With a technical background, I worked in the offshore oil and gas market for a few years. Today, my team and I are dedicated to bringing information from the Brazilian energy sector and the world, always with credible and up-to-date sources.

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