Petrobras commences binding phase for divestment of three refineries

Brazilian oil company Petrobras has initiated the binding phase for the sale of refineries in three states of the country.

The divestment includes the sale of the Isaac Sabbá Refinery (REMAN) in Manaus, Amazonas, and Northeast Lubricants and Oil Derivatives (LUBNOR) in Fortaleza, Ceará.

The Shale Industrialization Unit (SIX) in São Mateus do Sul, Paraná, is also included in the divestment programme.

The company will also sell the corresponding logistics assets of these three refineries as part of the programme.

In October last year, Petrobras started the non-binding phase for the sale of these refineries.

Petrobras noted that it will send a process letter with detailed instructions to potential buyers qualified for this binding phase. It will also include due diligence guidance and binding proposals submission.

The refinery divestments are in line with the company’s portfolio optimisation and improved capital allocation to maximise value for its shareholders.

REMAN and LUBNOR respectively have a processing capacity of 46,000bpd and 8,000bpd. SIX has an installed capacity of 6,000bpd.

SIX comprises a mine in an oil shale reserve and a shale processing unit while REMAN’s assets include a storage terminal.

REMAN is the largest among the three refineries, said Reuters.

The proposed refinery divestments follow Petrobras’ sale of its Pasadena Refining System, including the 112,229bpd refinery in Pasadena, Texas, and PRSI Trading businesses to Chevron last May.

In November last year, Petrobras started the binding phase for the sale of Abreu e Lima (RNEST), Landulpho Alves (RLAM), Presidente Getúlio Vargas (REPAR) and Alberto Pasqualini (REFAP) refineries.