Five sources with knowledge on the matter said that Brazil’s state-owned Petroleo Brasileiro SA (Petrobras) will receive binding offers for the 323,000 bpd Landulpho Alves refinery (RLAM) on Thursday as a part of the company’s divesting plant of more than USD10 billion assets.
Potential bidders for the refinery, located in the northeastern state of Bahia, including UAE investor Mubadala Investment Co. PJSC, Indian conglomerate Essar Group, and top Chinese state refiner Sinopec.
According to Reuters, earlier this year, bidders had requested Petrobras for more time as finances were struggling and due-diligence work was affected by the restriction on visits due to the coronavirus pandemic.
Some potential buyers have completed due diligence and no potential bidders from an initial round of non-binding offers have so far dropped out.
RLAM is Brazil’s second-biggest refinery, making up the country’s 14% of total production. Some sources said that Brazil’s first fuel unit, dates from 1950, is requiring renovations. It will also be sold together with pipelines and terminals.
