Brazil's Petrobras mulls Mubadala refining partnership
Brazilian state-run oil company Petrobras said it will analyze a proposal from Abu Dhabi sovereign investor Mubadala on creating a strategic refining and biorefining partnership in the northeastern state of Bahia.
Friday's announcement re-ignited speculation about Petrobras potentially buying back the Mataripe refinery, which it sold under previous management to Mubadala in 2021 for $1.65 billion.
Since leftist Luiz Inacio Lula da Silva became president in January, members of his government have hinted at the Petrobras buying back some refining assets to boost its fuel output.
Petrobras said in a securities filing that the business model to be analyzed would take into account potential joint investments, but noted it would "evaluate the acquisition of a stake" in Mataripe and Mubadala-owned Acelen Renewable Energy.
The oil giant did not detail if the talks included fully buying back Mataripe, which accounts for more than 10% of Brazil's oil refining capacity.
Brazil's Mines and Energy Minister Alexandre Silveira backed a Mataripe buyback in September, while Petrobras CEO Jean Paul Prates said last month that it was "a possibility".
"The aim of the future partnership is to strengthen the business environment in the sector and increase the supply of renewable fuels in our country," Petrobras said on Friday.
Petrobras in September signed a memorandum of understanding to study joining Mubadala in its downstream operations in Bahia, including a biorefinery in which the Abu Dhabi fund estimates $2.5 billion in investments will be needed.
Sources told Reuters at the time that the partnership could open the door to talks on Mataripe as Petrobras remained eager to repurchase the refinery, despite potential antitrust hurdles.
Related News
- John Cockerill, Johnson Matthey and ETFuels partner for 120,000-tpy Texas (U.S.) e-methanol project
- Saudi Arabia was top buyer of Russian fuel oil and VGO in November
- Digital Exclusive (sponsored): NXRe™: A novel recycling technology to support the plastics industry in creating efficient and effective circular value chains
Comments