Petrobras nears completion of due diligence for repurchase of potential Mataripe refinery
Date
7/28/2024 7:43:53 AM
(MENAFN) Brazilian state-run oil giant Petrobras is on the verge of finishing due diligence for a potential bid to repurchase the Mataripe refinery, which it sold to Abu Dhabi's sovereign wealth fund Mubadala for USD1.65 billion in 2021. This information comes from three sources familiar with the matter. The idea of a buyback was initially suggested last year when Mubadala proposed a joint venture in conventional refining and a new biorefinery, both of which would utilize the infrastructure of the Mataripe refinery located in Bahia state—a region with strong support for President Lula's Workers' Party.
Brazil’s Mining and Energy Minister Alexandre Silveira expressed a firm stance against selling refineries, stating, “If you ask me if Brazil should sell refineries, I would answer categorically: no.” Silveira mentioned that discussions were ongoing with representatives from the Mataripe refinery but emphasized that Petrobras would only proceed with the buyback if it proved to be economically viable.
Initially, Petrobras planned to acquire an 80% stake in Mataripe and make a minority investment in a biofuel plant in partnership with Mubadala, according to an individual familiar with the negotiations. However, the future of this deal remains uncertain, especially after the recent replacement of Petrobras’ CEO in May by President Lula. The evolving leadership and strategic priorities may influence whether the deal continues under the same terms or undergoes modifications.
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