Brazil: CADE recommends comprehensive sale of Petrobras refineries

T the Administrative Council of Economic Defense of Brazil (CADE) has recommended state oil company Petrobras sell all four refineries included in its disinvestment program, in addition to considering divestments also in the refining area. The recommendation is part of a technical study aimed at clarifying the downstream market in Brazil.

Theechnical note also indicates the importance of ensuring that divestments are directed towards various buyers, avoiding the creation of a “regional quasi-monopoly”, which could nullify any possible gains for consumers that would derive from greater competition in the sector.

In another segment, the report indicated that there is some concern about a quasi-monopoly in the market for the commercialization of resources for refining, especially in the “collection, treatment and disposal of oil”, which could be considered a barrier to the creation of a diversified and competitive market in oil exploration and production.

Petrobras presented last April a project to divest 60% of its stake in the Landulpho Alves refineries in Bahia, Abreu and Lima in the state of Pernambucoñ the Alberto Pasqualini in Rio Grande do Sul, and the Presidente Getúlio Vargas refinery in Paraná.

The Administrative Council of Economic Defense of Brazil (CADE) has recommended State owned oil company Petrobras that it sells all four refineries included in its disinvestment program, in addition to considering divestments also in the refining area. The recommendation is part of a technical study aimed at clarifying the downstream market in Brazil.

The technical note also indicates the importance of ensuring that divestments are directed towards various buyers, avoiding the creation of a “regional quasi-monopoly,” which could nullify any possible gains for consumers that would derive from greater competition in the sector.

In another segment, the report indicated that there is some concern about a quasi-monopoly in the market for the commercialization of resources for refining, especially in the “collection, treatment and disposal of oil,” which could be considered a barrier to the creation of a diversified and competitive market in oil exploration and production.

Petrobras presented last April a project to divest 60% of its stake in the Landulpho Alves refinery in Bahia, Abreu e Lima refinery in the state of Pernambucoñ, the Alberto Pasqualini refinery in Rio Grande do Sul, and the Presidente Getúlio Vargas refinery in Paraná.

Full Content: EPBR

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