According to sources familiar with the negotiations, Brazil’s state-run Petroleo Brasileiro SA (Petrobras)’s binding offers of its Refap refinery in Rio Grande on December 10 has attracted India’s Essar and local companies Raizen and Ultrapar Participacoes SA among others.
The three firms are pre-qualified for the binding phase.
On the same day, Petrobras will also accept offers for its Parana state refinery on a rebidding sale process as both Raizen and Ultrapar delivered bids that were too similar in value in September.
Each of Refap and Parana has a production capacity of 200,000 bpd or 18% of Brazil’s capacity. Both units cannot be bought by the same company after Petrobras’ divestiture.
This week, the state company will also accept offers for its 8,000 bpd Lubnor refinery in the northwestern region of Brazil.
Petrobras is also in an exclusive discussion with Abu Dhabi’s Mubadala Investment Co. for the sale of its second-largest refinery, Rlam. Essar is also bidding for this refinery and might restart talks in case of a rebid.
Last month, Petrobras also said that its Amazonian Reman refinery also has received binding offers.
The state-company is opening bids to end its monopoly in Brazil’s refining. Nine refining units are up for grabs, roughly about half of the country’s refining capacity.
