Home Corruption Car Wash Petrobras Sells Pasadena Refinery to a French Company

Petrobras Sells Pasadena Refinery to a French Company

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The agreement was entered into between the Brazilian state-owned company and the French company Chevron in the amount of R $ 2.090 billion (US $ 562 million)

Petrobras signed a purchase and sale agreement with the French company Chevron on Wednesday to sell its shares in the companies that make up the Pasadena refining system in the United States.

The sale of the refinery is part of Petrobras‘ divestment program and needs to be submitted to regulatory bodies.

The contract value is R $ 2.090 billion (US $ 562 million), of which R $ 1.302 billion (US $ 350 million) in the value of the shares and R $ 784 million (US $ 212 million) October 2018. The final value of the transaction is subject to working capital adjustments up to the closing date of the transaction, Petrobras said in a note.

Car Wash denounces 11 for the purchase of Pasadena refinery

The signing took place after approval on Wednesday by Petrobras‘ Board of Directors and continues the announcement made to the market on May 4 last year. The oil company reported the beginning of the binding phase related to the disposal of the shares held by its subsidiary Petrobras America Inc (PAI) in the companies that were part of the Pasadena refining system in the United States.

According to Petrobras, the sale of the companies Pasadena Refining System Inc. (PRSI), responsible for oil processing and derivatives production, and PRSI Trading LLC (PRST), which acts as PRSI‘s exclusive trading arm, both owned in full by Petrobras America Inc. (PAI).

The company said PRSI has a processing capacity of 110,000 barrels a day (bpd) and is located in the city of Pasadena, in the Gulf of Mexico (Texas). It is an independent Petrobras signed a purchase and sale agreement with the French company Chevron on Wednesday to sell its shares in the companies that make up the Pasadena refining system in the United States.

According to Petrobras, the sale of the companies Pasadena Refining System Inc. (PRSI), responsible for oil processing and derivatives production, and PRSI Trading LLC (PRST), which acts as PRSI‘s exclusive trading arm, both owned in full by Petrobras America Inc. (PAI).

The company said PRSI has a processing capacity of 110,000 barrels a day (bpd) and is located in the city of Pasadena, in the Gulf of Mexico (Texas). It is an independent oil refinery of the Petrobras System that can operate with medium and light petroleum streams and produces derivatives that are typically marketed in the American domestic market.

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According to Petrobras, Chevron USA Inc. is a member of Chevron Corporation, the second largest integrated energy company in the United States. Its products are sold at nearly 8,000 Chevron and Texaco retail stations and are also a major aviation fuel supplier. The French company has four refineries with a combined capacity to process 919,000 bpd in the country.

The Brazilian state-owned company said that the conclusion of the transaction is subject to compliance with usual precedent conditions, such as obtaining approvals by the antitrust agencies of the United States and Brazil.

Negotiations

The sale is part of the Petrobras Partnership and Divestment Program, foreseen in the Business and Management Plan 2019-2023, which, according to the company, provides for the optimization of the company’s portfolio.

The present disclosure to the market is in line with Petrobras‘ Disinvestment System, which is aligned with the special regime of asset divestment by the federal mixed-capital companies, provided for in Decree 9,188 / 2017, said the note.

Historic

The Pasadena refinery, in the city of the same name in Texas, was investigated at Petrobras‘ Joint Parliamentary Committee of Inquiry (CPMI) in 2014 and Operation Car Wash. A report from the audit of the Federal Comptroller’s Office (CGU), dated December 2014, pointed to an over-invoicing of US $ 659.4 million in the refinery’s purchase by the Brazilian state-owned company. According to the report, that the amount paid more did not take into account the state in which the refinery was.

The document was sent to Petrobras with instructions that measures be taken to seek redemption of damages of US $ 659.4 million. The CGU also sent a copy of the report to Petrobras‘ CPMI.