Under the proposed study, partners would have 60% participation in the regional blocks of the Northeast and South, but Petrobras would maintain a market share of 75%.
By Daniel Silveira and Darlan Alvarenga, G1
Petrobras announced on Thursday (19) that it will reduce its participation in the oil refining market through partnerships and the sale of the control of 4 refineries of the regional blocks in the Northeast and South of Brazil, maintaining the state’s operation in the Southeast, where most of the company’s refining units are located.
The partnerships would include the sale of interest in the Abreu and Lima and Landulpho Alves refineries in the Northeast, and Alberto Pasqualini and Presidente Getúlio Vargas in the South, in addition to 12 associated terminals.
Under the preliminary proposal, Petrobras would have a 40% stake in both regional blocks (South and Northeast), while partner companies would hold 60% of each block.
The oil company also said that in this model, its partner would control the operation, while the oil company would continue with a 75% share of the Brazilian market, since its other 9 refineries and 36 terminals, much of it in the Southeast, would be totally under its control.
In order to discuss the proposal, Petrobras held a seminar in Rio de Janeiro this year with the participation of the Ministry of Mines and Energy (MME), the National Petroleum Agency (ANP) and the Brazilian Institute of Petroleum, Natural Gas and Biofuels ( IBP).
“This discussion is based on the premise that we are an integrated oil and gas company, but that partnerships are fundamental to add value to our business,” state oil company president Pedro Parente said.
According to the president of Petrobras, the monopoly in any segment is detrimental to the economy. He argued that making room for other companies in the refining area will benefit the entire chain.
“When you have a single actor operating in the industry, when that company goes bad, the whole chain goes bad as well. So diversification also brings the supply chain to the supply chain, “he said.
Asked about a forecast of when the refineries could be put up for sale, Pedro Parente said there is a long process to follow, governed by the Federal Court of Audit, and that “it will take all year for sure.”
Parente said that the proposal was not even considered by Petrobras’ Board of Directors, but said he believed it would be approved in May.
According to Petrobras, the proposal for the refining area is in line with its divestment policy, which is underway to reduce the company’s indebtedness. In addition, it justifies that the refining partnership is necessary in the face of growing domestic demand for the consumption of oil products, which would require high investments.
The Pasadena refinery in Texas has been put up for sale . The goal in Petrobras’ business plan is to sell $ 21 billion in assets in the 2017 and 2018 biennium.
ANP defends sector decentralization
The director general of the ANP, Décio Oddone, endorsed the justification of Petrobras. According to him, the growing demand for oil products indicates that without investments, Brazil will have to import about 1 million barrels a day to meet domestic consumption.
Odonne emphasized that there is a lack of infrastructure in the country, especially in the logistics of transportation of derivatives. He also defended the decentralization of control of Petrobras in the refining sector – the only link in the oil chain where few companies compete with Petrobras.
“Brazil is too big for a single company to be responsible for anything in the area of oil and gas,” said Odonne.
The IBP president, José Firmo, also defended partnerships in the refining area. “Our experience with market opening can be exemplified by what happened with the upstream opening,” said Firmo, citing the advance in oil exploration after new players started investing in Brazil.
Petrobras holds the refining monopoly in the country, with a market share of 99%, according to a presentation made by the oil company on Thursday (19)
Comperj
According to Reuters, Petrobras is negotiating with China’s CNPC a partnership that provides for the exchange of oil from the Campos Basin by contributions from the Chinese company to the completion of the refinery in Rio de Janeiro (Comperj), which would require at least about 3 billions of dollars to be finalized.
The document disclosed by Petrobras makes no reference to Comperj, a venture in Rio de Janeiro that the state company will only end if it has some partnership, according to previously reported.
Petrobras has already written off Comperj values of more than R $ 6.5 billion, since the investigations that pointed to overpricing of contracts, whose values were used for illegal payments to politicians and former executives of the state company, were deepened.
* With Reuters
Brazil Energy Insight 
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