MOSCOW (MRC) -- Petrobras concluded the sale of the Landulpho Alves Refinery (Rlam) and its associated logistical assets, in Bahia, for the Mubadala Capital group, with the payment of USD1.8 billion, informed the state oil company in a statement to the market on Tuesday.
Acelen, a company created by Mubadala Capital for the operation, will take over from December 1 the management of Rlam, which will be renamed Refinaria de Mataripe.
Located in the municipality of Sao Francisco do Conde in Bahia, the refinery has the capacity to process 333,000 barrels of oil per day, or 14% of the country’s total capacity.
Its assets include four storage terminals and a set of pipelines that connect the refinery and terminals totaling 669 km in length.
“Petrobras will continue to support Acelen in refinery operations during a transition period. This will happen under a service provision agreement, avoiding any operational interruption”, said the company.
The amount paid reflects the purchase price of USD1.65 billion, preliminary adjusted due to monetary restatement and changes in working capital, net debt and investments until the closing of the transaction.
The contract also provides for a final adjustment to the acquisition price, which is expected to be determined in the coming months, added Petrobras.
Rlam was the first of eight refineries that Petrobras plans to sell to have its divestment completed, as part of a broad plan to open up the refining sector to private investment in the country. The state-owned company wants to keep in its portfolio only its five refineries located in the states of Rio de Janeiro e Sao Paulo.
“This sale operation is an important milestone for Petrobras and the fuel sector in the country,” said the president of Petrobras, Joaquim Silva and Luna.
As MRC informed before, Petrobras said in November it had halted talks with Brazilian conglomerate Ultrapar on the sale of the state-run oil company's Refap refinery, part of its program to sell eight plants. The company said it would relaunch the process of selling Refap in the future but did not provide a date.
We remind that in August 2021, Petrobras hired JPMorgan Chase & Co as an advisor to sell its stake in the petrochemical company Braskem SA.
We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC