Negotiations Between Petrobras and Ultrapar Over Refinery Purchase in Rio Grande do Sul Fail

Negotiations Between Petrobras and Ultrapar About the REFAP Refinery in Rio Grande do Sul Began in Early January This Year

Petrobras announced last Friday (10/1) that negotiations with Ultrapar for the sale of the Alberto Pasqualini Refinery (REFAP), located in the state of Rio Grande do Sul, have failed. The company will initiate a new competitive process for this refinery. The negotiations between the companies began in January of this year. Also read this news: Petrobras Studies the Possibility of Again Raising Fuel Prices at Refineries

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End of Negotiations Between Companies for the Refinery in Rio Grande do Sul

In a statement to the press, Petrobras said that despite the efforts made by both companies in this sales process for the refinery in the state of Rio Grande do Sul, certain critical conditions did not succeed in reaching an agreement, leading to the decision to end the ongoing negotiations, without penalties for either party.

Ultrapar stated that critical conditions ended up unsettling the expected risk-return equation. “Thus, Ultrapar informs that it will not renew its binding proposal to Petrobras, opting to end the ongoing negotiations, without penalties for either party,” the company said in a statement.

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In January, Petrobras Confirmed Negotiation with Ultrapar for the Sale of the Refap Refinery

Petrobras confirmed in early January that it was negotiating with Ultrapar Participações for the sale of the Alberto Pasqualini Refinery (REFAP) in Rio Grande do Sul. The bidding was also contested by Raízen and Sinopec. The company also received proposals for the sale of the Presidente Getúlio Vargas Refinery (REPAR) in Paraná, which are under analysis.

Ultrapar, in a relevant fact, reported that Petrobras confirmed that its proposal was approved and that the process of negotiating the terms of the purchase and sale contract and auxiliary contracts had begun. “The potential acquisition of Refap will strengthen Ultrapar’s position in the sector, contributing to a more complementary and synergistic business portfolio, with greater efficiency, potential value generation for the entire chain, and benefits for consumers,” said the company.

The Refap: The Alberto Pasqualini Refinery of Petrobras has a capacity to process 208,000 barrels/day and the sale includes two terminals in Rio Grande do Sul and the pipelines connected to the refineries for the flow of derivatives. The unit is interconnected to the industrial units in Triunfo.

Check Out This News: For R$ 994 Million, Petrobras Sells Isaac Sabbá Refinery (REMAN) in the State of Amazonas to the Atem Group

Petrobras signed with the Atem Group the contract for the sale of the Isaac Sabbá Refinery (REMAN) in Manaus, Amazonas, and its associated logistical assets for US$ 189.5 million (R$ 994.15 million). The refinery is the second among the eight that are in the sales process to have the contract signed. REMAN has a processing capacity of 46,000 barrels/day, and its assets include a storage terminal.

The sale of REMAN is in accordance with Resolution No. 9/2019 of the National Energy Policy Council, which established guidelines for promoting free competition in the refining activity in the country, and is part of the commitment made by Petrobras with CADE to open the refining sector in Brazil. The divestment process of REMAN, approved by Petrobras’s Board of Directors on this date, strictly followed the Divestment Systematic approved by the Federal Court of Accounts (TCU). The refinery divestment project was approved at all levels of Petrobras’s corporate governance.