Material Fact: Acquisition of stake in Refap Refinery

abarrelfullabarrelfull wrote on 23 Jul 2013 09:00

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December 14, 2010

Petróleo Brasileiro S.A. - Petrobras announces that, through its subsidiary Downstream Participações Ltda., it signed today a Purchase and Sale Agreement with Repsol YPF for the acquisition of 30% of the capital stock of Alberto Pasqualini Refinery S.A. - Refap, for $850 million, being $350 million for the Repsol’s stake in the asset and $ 500 million for the corresponding portion of Repsol's debt in Refap. The Board of Directors approved the Purchase Agreement.

With this acquisition, Petrobras once again holds 100% interest in Refap. Repsol had acquired a 30% stake in 2001 as a result of an asset exchange between the companies.

Refap is the fifth largest refinery in Brazil. Its expansion process, which got underway in 2001, was completed in 2006. The refining capacity was increased from 130 thousand to 190 thousand barrels per day, and its operational complexity was enhanced for the processing of heavier crude. 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.

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