Brazil’s state-owned Petrobras will retain more than half of domestic fuel oil and bunker fuel production after completing the divestment of eight refineries, according to data from the National Agency of Petroleum (ANP). The plants on sale produced 27.415 million barrels of the two fuels in the first seven months of 2021. That represents 46.1% of Brazil’s total production of the products. In comparison, refineries that Petrobras will keep produced 30.448 million barrels or 51.2% of the country’s total output.
Fuel oil exports are an important revenue source for the South American country thanks to its lighter crude grades which suit production of ultra-low-sulfur diesel (ULSD) and bunker fuel complying with the IMO 2020 standard. Brazil mostly exports these fuels to Asia, especially Singapore, with the Caribbean being another key market. Brazil’s exports fuel oil and bunker fuel totalled 45.786 million barrels in January-July 2021, accounting for 77% of its output.
