Petrobras released today, June 28, 2019, a teaser for the divestment of eight refineries, in compliance with the Settlement Agreement (Termo de Compromisso de Cessação) entered into by the state-owned company and the Administrative Council for Economic Defense (“CADE”) on June 11.
The Settlement Agreement between Petrobras and CADE requires the company to divest 100% of its stake in Abreu e Lima Refinery (“RNEST”), Landulpho Alves Refinery (“RLAM”), Gabriel Passos Refinery (“REGAP”), Presidente Getúlio Vargas Refinery (“REPAR”), Alberto Pasqualini Refinery (“REFAP”), Isaac Sabbá Refinery (“REMAN”), Shale Industrialization Unit (Unidade de Industrialização do Xisto – “SIX”) and Northeastern Lubricants and Petroleum Derivatives (Lubrificantes e Derivados de Petróleo do Nordeste – “LUBNOR”), all of which make up for approximately 50% of the Brazil’s total refining capacity.
Petrobras divided the divestment process into two phases. Currently, only RNEST, RLAM, REPAR and REFAP refineries are being offered. The remaining assets shall be subject to a new teaser later this year.
As per our last Client Alert on the subject, the Settlement Agreement restricts the acquisition of certain refineries by the same buyer. Accordingly, from the assets announced in this most recent teaser, interested parties cannot acquire simultaneously the refineries of RNEST-RLAM and REPAR-REFAP.
Our Oil & Gas team is available for any further information on this matter.