Petrobras Completes Sale of Pasadema Refinery for Less Than Half the Value

Petrobras Completes Sale of Pasadena Refinery for US$ 467 Million. Acquired for US$ 1.18 Billion in a Controversial Process, Refinery Was Sold to American Chevron for Less Than Half the Value.

Petrobras signed on Wednesday, April 30, with Chevron, the purchase and sale agreement regarding the complete divestiture of the shares it held in the companies that make up the Pasadena refining system in Texas, United States. The transaction was carried out through its subsidiary Petrobras America Inc (PAI). Chevron disbursed US$ 467 million (approximately R$ 1.8 billion) to PAI, with US$ 350 million for the value of the shares and US$ 117 million in working capital, which will be adjusted later to reflect the position as of the closing date.

Before finalizing the purchase, Chevron demanded that Petrobras provide proof that the Pasadena refinery would operate as promised. The purchase was announced in January, but for a higher amount; at the time, the deal was estimated at a total of US$ 562 million, initially at US$ 350 million plus US$ 212 million in working capital. The sale of the refinery is part of Petrobras’ divestment program and must be submitted for evaluation by regulatory bodies.

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“This operation is aligned with the optimization of the portfolio and the improvement of the company’s capital allocation, aiming to generate value for our shareholders.”, Petrobras informed in a statement.

The purchase of Pasadena was made in two stages. In 2006, during the government of former President Luiz Inácio Lula da Silva, Petrobras, with the approval of the board of directors, paid US$ 360 million to the Belgian company Astra Oil for 50% of the refinery. In 2012, Petrobras paid another US$ 820 million for the remaining 50%.

A year earlier, the Belgian group had disbursed only US$ 42 million (about R$ 160 million) for 100% of the unit. At the time the transaction was approved, Dilma Rousseff was chairing the state company’s board.

The conclusion of the agreement marks the end of a controversial project for the Brazilian company, which brought severe losses to the oil company. The purchase of the Pasadena refinery in 2006 triggered a corruption investigation. However, the refinery cost the company about US$ 1.2 billion (nearly R$ 4.8 billion).

In addition to the refinery, Chevron acquired PRSI, Petrobras’ subsidiary that operates the refinery and PRSI Trading, which sells crude and refined products. PRSI also has a storage tank of 5.1 million barrels and an additional 143 acres of land along the Houston shipping channel.

Petrobras announced on Monday, April 29, that it has opened the bidding for the leasing of the Fafens, as the company’s nitrogen fertilizer plants in Sergipe (Fafen-SE) and Bahia (Fafen-BA) are known.