A binding offer to Brazil’s Petroleo Brasileiro SA made by Indian conglomerate Essar Group to buy Brazil’s second-largest oil refinery. Besides offer from Abu Dhabi’s Mubadala Investment Company, Petrobras also has received at least two offers for the 323,000 bpd Landulpho Alves refinery in Bahia, known as Rlam.
If Essar’s bid is successful, it would mark the group’s debut in Brazil. Essar has invested roughly $28 billion in assets in the energy, infrastructure, mining and services.
According to Petrobras’ asset sale rules, the top bidder must enter into an extended round of negotiations, usually lasting several weeks, to finalize contract terms. Depending on the outcome, it may require a final round of bidding which could potentially change the result of the competition.
