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November 12, 2021

Petrobras to sell shale refinery to F&M Resources for $33m

Shale Industrialization Unit (SIX) has a processing capacity of 5,800t per day.

By Archana Rani

Petróleo Brasileiro (Petrobras) has signed a contract to divest Shale Industrialization Unit (SIX) to Canada’s Forbes & Manhattan Resources (F&M Resources ) for $33m.

The sale price includes $3m as a guarantee, which has been paid. The remaining $30m will be paid at closing, subject to certain adjustments. The contract also anticipates contingent payments.

SIX will be the third refinery to be sold under a divestment strategy, which aims to sell a total of eight refineries.

Located in the city of São Mateus do Sul in Paraná state, SIX has 5,800t per day of shale processing capacity. It focuses on the production of LPG, fuel oil, fuel gas, naphtha, and sulphur.

The sale is contingent on precedent conditions, including approval by the National Agency of Petroleum, Natural Gas and Biofuels (ANP ) and the Administrative Council for Economic Defense (CADE).

Upon completion, Petrobras will support F&M Resources in operating SIX for up to 15 months.

Furthermore, Petrobras and F&M Resources are expected to sign a lease agreement to allow research activities developed by the Brazilian firm in the asset’s experimental plants.

In a press statement, Petrobras said: “This transaction is in line with Resolution No 9/2019 of the National Energy Policy Council, which established guidelines for the promotion of free competition in the refining activity in the country.

“This disclosure to the market is in accordance with Petrobras’ internal rules and with the special regime for divestment of assets by federal mixed economy companies, provided for in Decree 9,188/2017.”

In a separate development, Exxon Mobil is reportedly in discussions with Dutch contractor SBM Offshore (SBMO) for the construction of a fourth production unit to support the development of oil discoveries offshore Guyana.

The two firms will also explore the potential for some future platform assembly in the country, reported Reuters citing two people close to the negotiations.

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