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Home Petrobras terminates contract with Forbes&Manhattan after failure to meet financial obligations at SIX

Petrobras terminates contract with Forbes&Manhattan after failure to meet financial obligations at SIX

11 July 2023 to 15: 20
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Paraná Xisto SA
PHOTO: Paraná Xisto SA

Canadian company owes R$140 million to Petrobras, resulting in the suspension of the Temporary Administrative Support and Technical Support contract for the Refinery Operation.

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

This complaint was made by the director of the Single Federation of Oil Workers (FUP), Deyvid Bacelar. He points out that this incident is just one of the scandals that occurred at SIX, showing the financial and operational inability of the group that acquired the Paraná refinery. In addition, Bacelar highlighted the connection between Forbes&Manhattan and former Petrobras managers. Petrobras' statement suspending the contract was disclosed through a note directed at oil workers.

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Privatization of SIX in 2022 allowed Forbes&Manhattan to intervene, but it generates controversy and lawsuits

In November 2022, SIX, located in Sao Mateus do Sul, in Paraná, was privatized by the Canadian group Forbes&Manhattan, for R$33 million. According to the established contract, Petrobras would continue to manage the unit until the new company, Paraná Xisto, was able to operate autonomously.

During this transition, Petrobras would be remunerated for the work performed. However, the Single Federation of Petroleum Workers (FUP), Anapetro (an association that represents Petrobrás' minority oil workers) and Sindipetro PR/SC requested information from Petrobrás about the clauses present in the contract between the parties involved.

Previous issues involving Forbes&Manhattan and their consequences

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

Bacelar stressed that the fight against the privatization of SIX is still ongoing and highlighted the existence of ongoing legal proceedings related to the sale and environmental issues. The FUP claims that Petrobrás did not carry out the compulsory environmental audit, that the way SIX was sold was illegal due to the nature of the unit's concession, not exploration and production, and, due to this, the sale would not be in accordance with municipal decree number 9355.

The sale itself would have been carried out at an amount below the market price, resulting in losses for Petrobrás' own shareholders. This situation reveals financial and operational problems of the group that acquired the Paraná refinery.

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