April 26, 2019 / 11:19 PM / a year ago

UPDATE 2-Brazil's Petrobras details refinery, other asset sale plans

 (Includes details of assets, table)
    By Marcelo Teixeira
    SAO PAULO, April 26 (Reuters) - Brazil's state-controlled
oil company Petrobras on Friday for the first time
detailed long-awaited plans to sell a series of refineries and
other assets as the company focuses on its core oil and gas
exploration business.
    Petrobras, or Petroleo Brasileiro SA, said its board had
approved a plan to sell eight refineries in Brazil, including
its large, recently built Abreu e Lima unit, according to a
securities filing.
    The company also said it will sell a gas station chain in
Uruguay, called PUDSA, and an additional stake in Brazil's No. 1
fuel distribution company BR Distribuidora SA as part
of a massive divestment drive that aims to cut debt and raise
money to be invested in its core oil exploration area.
    Petrobras, which currently has a 71 percent stake in BR
Distribuidora, said it is evaluating a secondary share offering
to reduce its stake in that business. 
    A source with direct knowledge of the decisions taken by the
board told Reuters earlier on Friday that the oil company could
reduce its stake in BR to as low as 40 percent.
    Petrobras said that among the other refining assets to be
put up for sale are its Gabriel Passos unit, located in central
Minas Gerais state, the Getúlio Vargas refinery, in southern
Paraná state and the Landulpho Alves unit, in northern Bahia
state, one of the largest refineries in the country with
capacity to process 323,000 barrels per day.
    The Abreu e Lima unit is emblematic. Launched in 2005 as a
joint project for Brazil and Venezuela, in a collaboration of
the leftist governments of Luiz Inácio Lula da Silva and Hugo
Chavez, the unit had successive cost overruns that led to total
capital expenditure of around $20 billion from an initial
estimate of $2.3 billion.
    Venezuela's PDVSA later abandoned the project, that was
partially concluded in 2014.
    See below details of the refineries put up for sale by
                          (STATE)       (BPD)         SINCE
     Abreu e Lima        Pernambuco    230,000         2014
    Landulpho Alves        Bahia       323,000         1950
    Gabriel Passos      Minas Gerais   150,000         1968
    Getúlio Vargas         Paraná      207,000         1977
  Alberto Pasqualini     Rio Grande    201,000         1968
                           do Sul                 
      Isaac Sabbá         Amazonas      46,000         1957
        Lubnor             Ceará        8,000          1966
     Unidade Xisto         Paraná       5,800*         1972
 *tonnes of shale per day

 (Reporting by Marcelo Teixeira; Editing by Christian Plumb and
Sandra Maler)
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