Petrobras is negotiating to regain ownership of the Landulpho Alves refinery and reverse the Bolsonaro-era sell-off of state assets to pay down billions of national debt and fill state coffers.
Under ex-president Jair Bolsonaro, Petrobras agreed with local antitrust agency CADE to sell off eight refineries to help increase Brazil’s production of petroleum derivatives, heighten competition and reduce the price of gasoline.
These goals are being questioned by President Lula da Silva’s administration. A Ministry of Mines and Energy study found that the privatization program had not brought to the public the benefits that were promised.
The Landulpho Alves refinery, known as RLAM, was sold to the Abu Dhabi sovereign wealth fund Mubadala in 2021 for U.S.$1.65 billion, which some say was below market value. RLAM accounts for about 10% of Brazil’s oil refining capacity. Petrobras currently owns and operates 11 refineries in Brazil, with total crude processing capacity of 1.85 million barrels of oil per day.
Federal government officials have said they intend to open the books at the Isaac Sabba refinery, owned by Ream Participacoes, and the SIX refinery, owned by Forbes Resources Brazil Holding, and RLAM, amid accusations that these refiners charge higher prices for their products.
The refiners counter that Petrobras-supplied feedstock is intentionally expensive, making it harder to compete in the domestic market. Petrobras refutes their complaints, saying that there are more than 60 oil producers to chose from in Brazil.
“Independent refineries can supply all their oil requirements without depending on us,” Petrobras says.