Refining off the radar of the big oil companies

July 1, 2019

The process of selling part of Petrobras’ refineries should not attract the interest of big oil companies, but rather of fuel distributors and refining operators. The opinion was presented by the deputy minister and former Minister of Mines and Energy of the government Michel Temer, Fernando Coelho Filho (DEM-PE), during an event held at the FGV when the first teaser of the disinvestment process of the oil refining park.

In addition to idle refining capacity, Coelho Filho noted that the major oil companies are concerned about the fuel price policy in Brazil. Petrobras Institutional Relations Director Roberto Ardenghy, who is also present at the event, believes that the sale of the refineries may attract the interest of suppliers and service providers.

The former minister stressed that for the process to be successful it will be crucial for Petrobras to be clear about the difference in the perception of value of the assets from the point of view of the buyer. Coelho Filho emphasized that the refineries have a value for the oil company and another for the market.

“This perception is crucial for the business to happen. If they (Petrobras) are able to admit that (the refinery) has a value for Petrobras and another completely different for a player, I think there is a condition of (the sale) happening, “said the former minister.

The first sales teaser of the refinery launched by Petrobras includes RNEST in Pernambuco, Rlam in Bahia, Repar in Paraná and Refap in Rio Grande do Sul, also contemplating the local logistics infrastructure. The process of divesting the refining park will also have a second teaser, aimed at Regap (MG), Reman (AM), Six (PR) and Lubnor (CE) with a planned release for the second half of this year.

The eight refineries made available in Petrobras’ disinvestment plan account for about 50% of the national refining capacity and will be sold in full. The operation offers a total processing capacity of 1.1 million barrels per day of oil.

According to Roberto Ardenghy, the intention is to complete a portion of refining disinvestment later this year, but the pace will be dictated by the company’s sale process.

“Fact is we will have to see how the project is done. The process of selling Petrobras assets is complex and we have to follow several procedures, “says Ardenghy.

Source: Brazil Energy

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