Pipelines, Scaffolding, and Valves Fly Through the Air Following Explosion at Petrobras Refinery in Bahia

Accident at Landulpho Alves Refinery (RLAM) Causes Gigantic Air Displacement, Hurls Equipment Through the Air, and Frightens Workers

On last Wednesday, May 12, around noon, scaffolding, piping, valves, and thermal insulation were hurled into the air after an explosion at Unit 38 (H2 line) of the Landulpho Alves Refinery (RLAM) operated by Petrobras, located in Bahia.

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A worker at the unit said he was about 30 meters away when the explosion occurred, “the air displacement was gigantic, the noise and the silence right after were deafening,” he said.

The management of the Bahia Petrochemical Workers Union (Sindipetro-BA) and the Unique Federation of Petroleum Workers (FUP) said that fortunately there were no casualties, but the scenario could have led to many deaths if the accident had happened outside of lunch hours. Representatives of both organizations have already contacted RLAM management to follow up on the investigations into the cause of the explosion.

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Refinery Operating with Reduced Staff

RLAM in Bahia is currently undergoing maintenance shutdown. Petrobras decided to implement O&M (Organization and Method), and since 2017, the refinery has been operating with reduced staff.

Sindipetro and FUP attempted to prevent the implementation, even through the courts, via the Public Labor Ministry, citing serious consequences such as work teams with no operators. This forces RLAM workers to give up their days off to cover these vacant positions and ensure the facility continues to operate.

The Petrobras RLAM refinery is located in São Francisco do Conde, Bahia, and has a processing capacity of 333,000 barrels per day (14% of Brazil’s total oil refining capacity), with assets including four storage terminals and a network of pipelines that connect the refinery and the terminals, totaling 669 km in length.

After Facing Legal Battles with Unions and Oil Workers, Petrobras Finalizes Sale of RLAM Refinery in Bahia for $1.65 Billion

Despite unions and workers attempting to block the sale of the Landulpho Alves Refinery, Petrobras announced in a relevant fact yesterday afternoon (03/24) that it finalized the contract with Mubadala Capital for the sale of the company’s shares in RLAM and its associated logistics assets in the state of Bahia for $1.65 billion.

According to Petrobras, the contract provides for adjustments to the sale price based on variations in working capital, net debt, and investments until the transaction closes. The oil company also states that the operation is subject to the fulfillment of conditions precedent, such as approval by the Administrative Council for Economic Defense (CADE).

“Until the fulfillment of the conditions precedent and the closing of the transaction, Petrobras will continue to operate the refinery and all associated assets normally. After the closing, Petrobras will continue to support Mubadala Capital in the operations of RLAM during a transition period. This will occur under a service agreement, avoiding any operational interruption. Petrobras and Mubadala Capital reaffirm their strict commitment to operational safety at RLAM throughout all phases of operations,” said Petrobras in the statement.