Brazilian state-led oil company Petrobras has agreed to sell the Refinaria Landulpho Alves (RLAM), in Bahia state to Abu Dhabi’s Mubadala Investment for $1.65 billion in the first of what is expected to be eight refinery sales by the end of 2021, Petrobras said.

It said: “The signing of the sales and purchase contract is still subject to approval by competent bodies.”

Petrobras opened a final round of binding offers based on parameters negotiated with Mubadala on December 3, 2020. The deal is significant because it officially ends Petrobras’ monopoly in the refining segment.

Petrobras currently operates 98 percent of Brazil’s refining capacity, but that total will drop to about 50 percent after the company completes the sale of eight of its 13 operated refineries by the end of 2021.

The refinery sales were ordered under a 2019 deal with the Justice Ministry’s Antitrust Division, (which is also known as CADE).

Petrobras will retain five refineries in the country’s southeast region, focused on the agricultural and industrial heartlands of Sao Paulo and Rio de Janeiro states. The refineries will primarily produce ULSD, gasoline and low-sulphur bunker fuel.

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15th February 2021