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Update2 -Petrobras: Talks to acquire Aruba, & Astra share Pasadena on hold

Home Forums Refining Community Refinery News Update Valero Sale Aruba Stalls – looking elsewhere? Update2 -Petrobras: Talks to acquire Aruba, & Astra share Pasadena on hold

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Charles Randall
Participant

Petrobras: Talks to acquire Aruba, Pasadena refineries on hold – Brazil, Caribbean
Published: Tuesday, September 16, 2008

By Fbio Palmigiani, Business News Americas
Brazil’s federal energy company Petrobras has suspended talks to acquire Texas-based Valero Energy’s (NYSE: VLO) Aruba refinery and an increased stake in Pasadena Refining.

“We are not evaluating the Aruba refinery for the moment,” Petrobras downstream director Paulo Roberto Costa told journalists on the sidelines of the Rio Oil and Gas conference. Petrobras previously said it was interested in the refinery, which Valero aims to offload this year.

The refinery has throughput capacity of 275,000b/d. The unit processes lower-cost heavy sour crude oil and can market products in the US Gulf Coast, Florida, the New York harbor and the Caribbean. And the proposed acquisition of Transcor Astra Group’s 50% stake in Pasadena Refining (PRSI), the US company operating the Pasadena refinery in Texas, is on hold, according to Costa.

Petrobras was due to make investments in the refinery but allegedly failed to do so, creating a legal conflict. “We understand Petrobras is suing Astra and not the other way around. We felt very uncomfortable with the situation and decided to sue Astra in the US,” Costa said.

Astra, Belgium group NPM/CNP’s oil trading and refining subsidiary, has said it would sell its stake to Petrobras. “Transcor Astra Group has… exercised its right to put these assets to Petrobras,” NPM/CNP said in a statement earlier this year. “The sale price is subject to valuation by independent appraisers.”

Pasadena has 100,000b/d of installed capacity.

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