Petrobras Terminates Contract with Forbes & Manhattan After Failure to Meet Financial Obligations at SIX

Canadian Company Owes R$140 Million to Petrobrás, Resulting in the Suspension of the Temporary Administrative Support and Technical Support Contract for the Refinery Operation.

Petrobrás was forced to suspend the contract with the Canadian company Forbes&Manhattan due to a debt estimated at around R$140 million. Thus, the state-owned company suspended the activities of the Temporary Administrative Support and Technical Support Contract for the Refinery Operation, which was being carried out by Paraná Xisto S.A, Shale Industrialization unit – SIX.

This disclosure was made by the director of the Single Federation of Oil Workers (FUP), Deyvid Bacelar. He emphasizes that this incident is just another one of the scandals occurring at SIX, highlighting the financial and operational incapacity of the group that acquired the refinery in Paraná. Additionally, Bacelar pointed out the connection between Forbes&Manhattan and former Petrobrás managers. The communication from Petrobrás suspending the contract was disclosed through a note directed to oil workers.

Privatization of SIX in 2022 Allowed Forbes&Manhattan’s Intervention, But Generates Controversies and Lawsuits

In November 2022, SIX, located in São Mateus do Sul, Paraná, was privatized by the Canadian group Forbes&Manhattan for a value of R$33 million. According to the established contract, Petrobrás would continue to manage the unit until the new company, Paraná Xisto, was ready to operate independently.

During this transition, Petrobrás would be compensated for the work done. However, the Single Federation of Oil Workers (FUP), Anapetro (association representing minority shareholder oil workers of Petrobrás), and Sindipetro PR/SC requested information from Petrobrás about the clauses present in the contract between the involved parties.

Previous Problems Involving Forbes&Manhattan and Their Consequences

This new episode joins a series of initiatives already taken by oil workers’ lawyers regarding Forbes&Manhattan. These actions include irregularities in the sale process of the refinery in Paraná, issues related to the production and exploration of shale, as well as environmental concerns.

Bacelar stressed that the fight against the privatization of SIX is still ongoing and highlighted the existence of ongoing lawsuits related to the sale and environmental issues. FUP states that Petrobrás did not conduct the mandatory environmental audit, that the method of selling SIX was illegal due to the concession nature of the unit, rather than exploration and production, and therefore, the sale would not comply with municipal decree number 9355.

The sale itself is said to have been executed for a value below the market price, resulting in losses for Petrobrás’ own shareholders. This situation reveals financial and operational problems of the group that acquired the refinery in Paraná.