Brazilian firms Raizen and Ultrapar Participacoes SA are reportedly joining the bidding process for Petrobras’ Presidente Getúlio Vargas Refinery (Repar) in the state of Parana, Reuters reported, citing sources familiar with the matter. The sale is part of Petrobras’ multi-billion asset divestment plan. The 208,000-bpd Repar accounts for 9% of Brazil’s refining capacity, making it the country’s fifth-largest refinery.
Raizen is a joint venture between Brazilian ethanol producer Cosan SA and Royal Dutch Shell Plc. Previously, the New York Times reported that Global Infrastructure Partners (GIP), an American private equity firm teamed up with Raizen to acquire Petrobras refineries on sale. Meanwhile, Ultapar is a Brazilian conglomerate which may bid for Repar on its own or in a joint bid with Blackstone-backed Patria Investimentos Ltda.
The 208,000-bpd Repar accounts for 9% of Brazil’s refining capacity, making it the country’s fifth-largest refinery. Gasoline and diesel make up 70% of Repar output which are distributed to the state of Parana, Santa Catarina, Mato Grosso, and Sao Paulo. The refinery is put on sale with 476-kilometers oil pipelines as well as five storage terminals, four in Santa Catarina and one in Parana.
