Brazil In Talks to Buy Texas Oil Refinery

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Petrobras – Brazilian Petroleum, S.A. – wants to close a deal with the US company, Astra Oil, to buy part of a refinery in Texas by the end of this year.

This intention was announced by the Brazilian State enterprise’s executive manager of Refining and Supply, Alan Kardec.

According to Kardec, by processing part of Brazil’s heavy petroleum in the United States, the company would be able to aggregate value to its product and gain direct access to what is regarded as the world’s largest and most competitive market.

"It represents the purchase of a large asset, an important refinery, but there are still some issues to be resolved," he said.

One of the chief items that remains to be settled, according to Kardec, is that Astra wants to sell only 50%, while Petrobras wants a larger share, giving it greater control over the unit’s management. "We desire a more adequate management role," Kardec affirmed.

According to the Petrobras executive, the Pasadena Refining System will have the capacity to refine up to 100 thousand barrels daily.

Petrobras announced its negotiations with the Astra Oil Group last November, when a memorandum of understanding was signed.

In line with what Petrobras will require, the refinery is being refurbished to comply with the environmental standards fixed by the EPA (the US Environmental Protection Agency) for gasoline and diesel oil, as well large-scale processing of heavy oil with a high lead content.

Agência Brasil

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