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Petrobras Begins Sale Process of Refinery in Pasadena

02/07/2018 - 11h47

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NICOLA PAMPLONA
FROM RIO

Brazil's state-controlled oil company, Petrobras, announced on Tuesday (6) it had started the sale process of its refinery in Pasadena, targeted by investigations of the so-called Car Wash (Lava Jato) Operation and involved in environmental damage proceedings in the U.S.

The operation is part of the assets sale process of Petrobras, which is expected to raise US$ 21 billion by the end of this year. In order to sell the unit, Petrobras engaged Evercore bank, whose mission is to find potential buyers.

The refinery was purchased by Petrobras in 2006, based on the argument that the company wanted to enter the North American fuel market, but it ended up being one of the most questionable operations of the company.

Petrobras paid US$ 360 million for half of the refinery, almost eight times the amount paid by its previous owner, Astra Oil, a year before, in order to acquire 100% of its capital. After a legal dispute against Astra, Petrobras spent US$ 1.2 billion to acquire all shares.

Some of the clauses signed during the acquisition, approved by the Brazilian administration council led by then minister Dilma Rousseff, proved advantageous for Astra, and damaging to Petrobras.

Pasadena's refinery has the capacity of processing 110,000 barrels per day, and it is indicated as one of the most problematic units in Houston channel.

Translated by ANA BEATRIZ DEMARIA

Read the article in the original language

Richard Carson/Agência Petrobras
The Pasadena refinery was purchased by Petrobras in 2006
The Pasadena refinery was purchased by Petrobras in 2006

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