Repsol sells stake in REFAP refinery for $350 million
Repsol has agreed to sell to Petrobras its 30% stake in the Alberto Pasqualini refinery (REFAP) in the Brazilian state of Rio Grande do Sul. Following the transaction, Petrobras becomes the only shareholder of the refinery, which has a nominal capacity of 190,000 bbld.
Under the terms of the agreement, Repsol will receive $350 million and additionally will reduce its consolidated net debt associated to its stake in the REFAP refinery by a further $500 million. The sale will free Repsol from investment commitments of $355 million corresponding to its stake in REFAP. The difference between the accounting value of REFAP and its sale price, once the appreciation of the local currency is taken into consideration, is of approximately -$60 million.
The deal is part of the Repsol Group’s divestment of non-strategic assets as laid out in the Horizon 2014 strategic plan. Specifically, this deal completes the process of divesting stakes in non-integrated downstream assets in Latin-America which Repsol began in 2007.
The process included the sale of service stations in Chile (2007) Ecuador (2008) and Brazil (2008), and the stakes in the Brazilian refineries Manguinhos (2008) and REFAP (2010). In total, Repsol obtains $700 million by this process and reduces consolidated debt by approximately $500 million.
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