Sinopec is one of three bidders for a Brazilian oil refinery, which has been put up for sale by state-owned Petroleo Brasileiro (Petrobras) as part of an extensive asset disposal strategy.
Petrobras announced on September 21 that the sale of the Presidente Getulio Vargas Refinery (Repar) in the southern state of Paraná has reached the binding stage of the competitive process. Three bidders have been shortlisted, namely China Petroleum & Chemical Corporation (Sinopec), Ultrapar Participacoes S.A., and a consortium led by Raizen S.A. Petrobras said two of the proposals are close in value, and it will conduct a new round of receiving binding proposals under the Petrobras Divestment Methodology.
Brazil’s fifth largest refinery, Repar can process 208,000 barrels per day or 9% of the country’s capacity. It primarily supplies the markets of Parana, Santa Catarina, southern Sao Paulo and Mato Grosso do Sul. The refinery is connected to two marine terminals and three pipelines.
However, there is a pending legal challenge to Petrobras' plan to sell half of its refining capacity. Brazil's Supreme Court is preparing to consider the case, with a hearing of the full court scheduled to begin soon.
In July Petrobras also began the negotiation phase for the divestment of the Landulpho Alves Refinery (RLAM). Located in the Reconcavo Baiano region, RLAM enabled the development of the first planned petrochemical complex in Brazil and the largest industrial complex in the Southern Hemisphere, the Camacari Petrochemical Complex. Today, Landulpho Alves is the second largest Brazilian refinery in complexity and capacity, producing 31 products including LPG, gasoline, diesel fuel, and lubricants.
Beijing-based Sinopec Group is the world's largest oil refining, gas and petrochemical conglomerate. Its businesses include oil and gas exploration, refining, and marketing as well as production and sales of petrochemicals.
Sinopec operates in Brazil via a joint venture with Repsol of Spain. The two are involved in offshore exploration in the pre-salt layers of the Santos basin.