Petrobras, Brazil’s state-run oil company, is nearing a deal to buy back the Mataripe refinery from Abu Dhabi’s sovereign wealth fund, Mubadala. The deal, which could be finalized in the coming months, comes after President Luiz Inacio Lula da Silva campaigned against the sale of Petrobras refineries and has pushed for the company to invest in the sector.
The refinery, also known as RLAM, was sold to Mubadala in 2021 for $1.65 billion. However, the sale was controversial with many arguing that the price was below market value.
Advertisement
Hey there! Want to support us? If you’re planning on shopping on Amazon, please consider using amzn.to/4bPDFNL. It doesn’t cost you anything extra, but helps us keep the lights on. Thanks for your support!
Negotiations on the buyback price and structure are still ongoing and could potentially delay the deal. Petrobras has discussed offering Mubadala the original price plus interest and reimbursements for investments made by the fund.
The potential buyback has been met with mixed reactions. Some analysts believe it will strengthen Petrobras’ position in the refining market and create jobs, while others worry that the deal could be financially unsustainable for the company.
Regardless of the outcome, the deal will have a significant impact on the Brazilian oil industry.