Petrobras to acquire stake in Refap from Repsol to hike holdimg to 100%

15-Dec-10

Brazilian state-run energy giant Petroleo Brasileiro SA (Petrobras) is to acquire balance 30% stake in local refinery Refap from Repsol YPF SA for US$850 mln. Repsol had acquired 30% in 2001 from Petrobas in an asset exchange between the companies. With this acquisition, Petrobras once again holds 100% interest in Refap. Petrobras will pay US$350 million for Repsol's stake in asset and US$500 mln for the corresponding portion of Repsol's debt in Refap. Refap is the fifth largest refinery in Brazil with 190,000 bpd capacity. Current production consists mainly of diesel and gasoline, in addition to petrochemical naphtha, propylene, LPG, jet fuel, fuel oil, and asphalt. "With the refinery being reintegrated to the company's business, Petrobras seeks gains in logistics and to optimize the domestic processing and production of oil products, over and beyond to implement investments planned for the production of low sulfur content diesel, in compliance with current legislation," the company said.