Petrobras chief says sale of Texas refinery still in the works

Petrobras chief says sale of Texas refinery still in the works

Brazil’s state oil firm Petrobras is pressing ahead with plans to sell off its oil refinery in Pasadena, Texas, according to Reuters.

Petrobras CEO Pedro Parente confirmed that no changes are foreseen in the divestment of the property for which, it is widely agreed, Petrobras massively overpaid in the first place.

The refinery cost Petrobras $1.2bn when it finalized payment in 2012 and now the company is believed to be asking only one sixth of that amount.

It was emblematic of the corruption scandal that has crippled Petrobras since being exposed in the past three years.

So bad was the Pasadena deal that it led to two former Petrobras executives being fined $80 million last August by Brazil’s Court of Accounts.

The overarching bribes-for-inflated-contracts graft scheme put huge holes in Petrobras’ bottom line, necessitating asset sell-offs and cutbacks to make up for some of the losses.

Another big divestment, of Petrobras’ LPG distribution unit Liquigas, is also still possible said Parente, despite Brazil’s antitrust watchdog blocking a bid from Ultragaz last week.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

Related Posts