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Petrobras Waits To Get Up To US $20 Billion From the Sale of Eight Oil Refineries

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Petrobras waits to haves up to $20 billion from the sale of eight refining assets in a lawsuit that is expected to last a year and a half to be completed, a company source told Reuters.

On Friday, Petrobras reported that its Board of Directors approved new guidelines for the management of the company’s portfolio of assets, considering the sale of eight refineries, but without estimating a value.

The adjustment in the management plan also includes the sale of Petrobras’ station network in Uruguay, as well as an additional stake in BR Distribuidora.

They are consolidated, standard assets, and worth $ 15 billion. We think they are worth up to 20 billion dollars, the source said, commenting on the refineries located in Pernambuco, Parana (two units), Bahia, Minas Gerais, Rio Grande do Sul, Amazonas and Ceará.

Besides being important assets for the company’s divestiture plan, which is fundamental for the company to reduce its high indebtedness, the sale of the refineries is key for Petrobras to stop being a monopolist in the sector.

With more refining operators, there could be more competition in pricing, and Petrobras would get rid of fuel-price polemics, such as that recently chaired by President Jair Bolsonaro.

According to the company’s source, who asked not to be identified, the sale equals about 50 percent of the company’s current refining park.

The company waits to sell the assets to different groups in order to stimulate competition in the domestic refining market and, consequently, in the final price formation for oil derivatives.

The idea is to sell pulverized following a recommendation from Cade (antitrust agency) to generate more competitiveness in the domestic market, he said.

Together, the refineries that are to be traded add up to a total capacity of 1.1 million barrels of oil per day, Petrobras said the day before.