Arab fund takes over Petrobras refinery in Bahia this Wednesday (1st)

Petrobras concluded this Tuesday (30) its first refinery sale operation since it decided to dispose of half of its refining capacity. For R$ 10.1 billion, the Landulpho Alves Refinery, in Bahia, now belongs to the Arab fund Mubadala Capital.

The unit will be renamed Mataripe Refinery and will be managed by Acelen, a company created by Mubadala to operate in the Brazilian refining market. The operation will be transferred to the new owner on Wednesday (1), but still with support from Petrobras.

Petrobras announced the sale of eight refineries, processes that should be completed by the end of the year, but so far only three have signed contracts. In addition to the Bahia unit, the Issac Sabá Refinery, in Manaus, and the Shale Industrialization Unit, in Paraná, have already been negotiated.

This Tuesday, at a meeting with analysts in New York, the company said it understood that the sale of refineries in Rio Grande do Sul and Paraná should only take place after the 2022 elections. Both were put up for sale, but negotiations were suspended for lack of interest.

With the sale of the Bahia refinery, a large part of the market in the Northeast region is now served by a private company. During a transition period, Petrobras will support Acelen in the operation of the facilities.

The operation, however, is questioned in court by oil workers unions, which will hold a national act on Friday (3) against the sale. The sale of Petrobras assets was questioned by Congress in the STF (Supreme Federal Court), but without success.

“Petrobras’ management is disposing of important assets for the country, becoming a small company, an exporter of crude oil, ‘dirty’ from the environment,” said the general coordinator of the FUP (Single Federation of Oil Workers), Deyvid Bacelar. “It is necessary to stop these privatizations.”

Acelen says it has plans to expand fuel production at the refinery, which currently operates using 60% to 70% of its 300,000 barrels per day capacity. And it is preparing a package to keep at least part of the state-owned company’s workforce.

“This new phase will bring growth opportunities and more investments for the refinery to increase its capacity and diversify its production,” said the president of Mubadala Capital in Brazil, Oscar Fahlgren.

In addition to the refinery, the transaction included a maritime terminal for handling oil and fuels and the pipeline network associated with the two businesses, extending 669 kilometers. The terminal will be operated by Transpetro, a subsidiary of Petrobras for the transport of fuels.

“This sale operation is an important milestone for Petrobras and the fuel sector in the country,” said the president of Petrobras, Joaquim Silva e Luna. “With new companies operating in refining, the market will be more competitive and we will have more investments, which tends to strengthen the economy and generate benefits for society.”

Located in the Mataripe district, in São Francisco do Conde, and inaugurated in 1950, the Landulpho Alves Refinery was the first Brazilian refinery. It is currently the second largest in the country in terms of capacity. It is also a raw material supplier for the Camaçari oil pole.

Petrobras’ strategy for the refining sector envisages maintaining only the units located in São Paulo and Rio de Janeiro, which have around 50% of the national refining capacity and are closer to oil-producing fields and major consumer markets .

After also failing in the attempt to sell the Abreu e Lima Refinery, in Pernambuco, Petrobras decided to resume investments to complete the works at the unit, which had been suspended after the start of Operation Lava Jato.

The expansion is part of a budget of around R$ 14 billion foreseen by the new investment plan of the state-owned company in its refining park and aims, according to the company, to improve the attractiveness of the asset for future sale.