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India’s Essar Considers Bid For Brazilian Petrobras

 |  November 9, 2020

Brazil’s Petroleo Brasileiro is set to receive binding offers on December 10 for its Rio Grande do Sul state refinery Refap, with Indian conglomerate Essar Group and local firms Raizen and Ultrapar Participacoes SA among its potential bidders, reported Reuters.

All three companies have been pre-qualified for the binding phase for Refap refinery, also known as Alberto Pasqualini, the sources added, declining to be named as the details are confidential.

Petrobras, as Brazil’s state-controlled producer is known, will also receive offers on the same day for its Parana state refinery – Presidente Getulio Vargas, or Repar – as part of a rebidding sale process. In September, both Raizen and Ultrapar delivered bids that were too similar in value.

Petrobras, Ultrapar, and Raízen declined to comment. Essar did not immediately respond to a Reuters request on the matter.

The bids are part of Petrobras’s plans to end its virtual monopoly in refining in Brazil and open one of the largest fuel markets to private competitors. Nine refining units are for sale, or about half of Brazil’s refining capacity.

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