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Agreement for sale of Petrobras units will stimulate competition in the refining market

Disinvestment

Eight refineries located in the South, Southeast, North and Northeast

The Executive Secretary of the Ministry of Economy, Marcelo Guaranys, participated on Tuesday (11/6), along with the Minister of Mines and Energy, Bento Albuquerque, for the signature of the Term of Commitment of Cessation (TCC). of which Petrobras undertakes to sell eight oil refineries, including fuel-related assets.

The measure, taken jointly with the Administrative Council for Economic Defense (Cade), aims to stimulate competition in the domestic refining market, with the entry of new agents that would attract investments to the sector. This market, so far, is exploited almost entirely by Petrobras.

"We are working to develop the economy with more competitiveness and productivity and competition is the key to this," said Guaranys, who represented the minister Paulo Guedes at the event.

The document was signed by the president of Cade, Alexandre Barreto, and by the president of Petrobras, Roberto Castello Branco, after approval by the Council, during the judgment session of this Tuesday (11/06). 

Under the agreement, the sale of the following units was established:

  • Abreu e Lima Refinery (PE)
  • Shale Industrialization Unit (PR)
  • Refinery Presidente Getúlio Vargas (PR)
  • Landulpho Alves Refinery (BA)
  • Gabriel Passos Refinery (MG)
  • Alberto Pasqualini Refinery (RS)
  • Isaac Sabbá Refinery (AM) and
  • Refinery Lubricants and Petroleum Derivatives of the Northeast (CE).

New frame

According to minister Bento Albuquerque, TCC is a new milestone for the Brazilian refining industry. "This document materializes the cooperation efforts between Petrobras and Cade. It is expected that the new market structure will favor competition and competition between agents, "he said. 

According to Alexandre Barreto, TCC involves an unprecedented divestment in Brazil and addresses the main issues identified as problematic in several investigations conducted by Cade, mainly in relation to the low dispute and low attractiveness of this market, which operates as a quasi-monopoly of Petrobras.

The divestment of the refineries must be completed by December 31, 2021, subject to the impeding circumstances set forth in the TCC.