Sale of the LUBNOR refinery
Sale of the LUBNOR refinery – Petrobras, in continuation of the statement released on 01/31/2020, informs that it signed on 5/25 with the company Grepar Participações Ltda., a corporate vehicle jointly owned by the companies Grecor Investimentos em Participações Societárias Ltda., Greca Distribuidora de Asfaltos Ltda. and Holding GV Participações S.A., contract for the sale of the Lubrificantes e Derivados de Petróleo do Nordeste (LUBNOR) refinery and its associated logistics assets, located in the state of Ceará.
The total value of the sale is US$34 million, of which (a) US$3.4 million has been paid on today’s date; (b) US$9.6 million to be paid upon closing of the transaction and (c) US$21 million in deferred payments. Said total sale value does not include the payment of adjustments provided for in the contract, due until the closing of the transaction.
The transaction is subject to the fulfillment of conditions precedent, such as approval by the Administrative Council for Economic Defense (CADE).
LUBNOR is the fourth asset to have the purchase and sale agreement signed within the scope of the commitment signed by Petrobras with CADE in June 2019 to open the refining market in Brazil. This operation 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.
“The sale of LUBNOR is yet another important moment for Petrobras’ portfolio management and for opening up the refining market in the country. We are contributing to the construction of a more dynamic market, with more competition between agents, more choices for consumers, more investors and more investments”, highlights the president of Petrobras, José Mauro Ferreira Coelho. Petrobras will continue to be a relevant refiner in the country and, at the same time, new agents will start investing in the acquired refineries, which creates a virtuous cycle of economic development.
According to Clovis Fernando Greca, managing partner of the purchasing consortium, the growth in the number of companies participating in the refining market will increase the competitiveness and diversity of players. With this, new opportunities and possibilities will emerge, benefiting society as a whole. “We are feeling victorious and happy to have reached this stage. This is a significant milestone for Brazil, for Ceará, for the refining market and for Petrobras. We believe that LUBNOR will be the beginning of a new cycle of opportunities, in a sector that we intend to grow and invest in new partnerships, respecting the ESG context in which the company is inserted, especially in Ceará”, highlights Clovis.
This disclosure to the market is in accordance with Petrobras’ internal rules and with the special regime for the divestment of assets by federal mixed capital companies, provided for in Decree 9,188/2017.
This operation is in line with the portfolio management strategy and the improvement of the company’s capital allocation, with a view to maximizing value and greater returns to society. Petrobras continues to increasingly focus its resources on assets that have demonstrated a great competitive advantage over the years, with lower greenhouse gas emissions.
About LUBNOR
LUBNOR, located in Fortaleza, Ceará, has an authorized processing capacity of 10,400 barrels/day, is one of the national leaders in asphalt production, and the only refining unit in the country to produce naphthenic lubricants.
About the buying companies
Grecor Investimentos em Participações Societárias Ltda. is a company that acts as a vehicle for investing in equity interests.
Greca Distribuidora de Asfaltos Ltda. is one of the largest companies specializing in asphalt in Brazil, operating in the production and sale of products for asphalt paving, is part of the Greca Asfaltos Group, which also operates in the Logistics, Shopping Center, Highway Concession, Production of Mineral Aggregates and Financial Solutions.
Holding GV Participações S.A. is an investment company operating mainly in the distribution and production of asphalt binders and fuel oils through the Betunel brand, one of the largest and most traditional companies in the sector operating since 1967.
