Petrobras Puts Abreu e Lima Refinery Up for Sale

Budgeted at US$ 2.3 Billion, It Ended Up Costing Almost Nine Times More. “Refineries Are Worth to Petrobras What They Are Not Worth to Anyone Else”, Says Former Minister of Mines and Energy

Petrobras formally began the sale of four of the eight refineries it intends to divest on the morning of June 28. The process will be divided into two phases and is expected to be completed in 2021. The divestment will reduce the company’s refining capacity by half, with 1.1 million barrels per day less. The package also includes logistical assets, which will be transferred to the new owners. The deadline to express interest in the assets is until August 16.

First Phase of the Sale

Abreu e Lima Refinery (RNEST, Pernambuco), located at the Port of Suape in Pernambuco, operations began in 2014, at this, the first and most famous refinery built by the state after 34 years. Surrounded by much controversy and included in the investigations of Operation Car Wash, the project was initially planned to be a partnership with the Venezuelan PDVSA, which was not realized. RNEST will be sold along with a 101-kilometer gas pipeline linked to the Suape Terminal.

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Landulpho Alves Refinery (RLAM, Bahia), the first Brazilian refinery, RLAM was established in 1950 in the Recôncavo Baiano. It serves states in the Northeast region, exports to the United States, Argentina, and some countries in Europe. In addition to the refinery, the package includes 669 kilometers of gas pipelines and four terminals in Bahia (Candeias, Itabuna, Jequié, and Madre de Deus).

Alberto Pasqualini Refinery (REFAP), in addition to the refinery, 260 kilometers of oil pipelines and two terminals in Rio Grande do Sul will be sold: Niterói and Tramandaí. In 2000, Petrobras sold a 30% stake in REFAP to the Spanish Repsol, a partnership dissolved in 2010.

Presidente Getúlio Vargas Refinery (REPAR, Paraná), along with the refinery, 476 kilometers of long oil pipelines will be sold: OPASC, connecting REPAR to the Terminals of Guaramirim, Itajaí, and Biguaçu; OLAPA, connecting the unit to the Paranaguá Terminal; OSPAR, connecting the refinery to the São Francisco do Sul Terminal.

Five terminals will also be sold: Paranaguá (Paraná), São Francisco do Sul (Santa Catarina), Guaramirim (Santa Catarina), Itajaí (Santa Catarina), and Biguaçu (Santa Catarina). The unit also has an interconnection, since 2012, with the fertilizer plant in Araucária (PR), to which it supplies asphalt residue, fuel oils, and utilities.

“The South presents one of the most mature oil derivative markets in the country, with a stable demand growth forecast for the coming years,” says Petrobras in the sale advertisement.

Second Phase of the Sale

The company also wants, in a second phase with no date set, to divest from four other refineries

• Isaac Sabbá Refinery (REMAN, AM)
• Lubricants and Oil Derivatives of the Northeast (Lubnor)
• Gabriel Passos Refinery (REGAP, MG)
• Shale Industrialization Unit (SIX, in Paraná)

However, the so-called “crown jewels” will remain with the state company: the refineries located in the Southeast region. In addition to the largest in the country, in Paulínia (SP), which has the capacity to refine 434,000 barrels per day, other units in the state will be excluded from the sale: Capuava Refinery (Recap) in Mauá; Presidente Bernardes in Cubatão; and Henrique Lage (Revap) in São José dos Campos. The Duque de Caxias Refinery (Reduc) in Rio de Janeiro will also remain with the company.

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