Petrobras Signs Pasadena Refinery Sale Agreement
12 February 2019
Petrobras informs that its subsidiary Petrobras America Inc. (PAI) recently signed with Chevron U.S.A. Inc., a Share Purchase Agreement (SPA) relating to the sale of all the shares held by PAI in the companies that encompass Pasadena's entire refining operations system in the United States.
The companies being sold comprise the Pasadena Refining System Inc. (PRSI), a company in charge of oil processing and oil products production, and PRSI Trading LLC (PRST), a company that acts as the exclusive commercial arm of PRSI, both wholly owned by Petrobras America Inc. (PAI). PRSI has processing capacity of 110,000 bpd and is located in the city of Pasadena, in the Gulf of Mexico, Texas. It is an independent refinery of the Petrobras System that can operate with medium and light petroleum streams and produces oil products that are typically traded in the US domestic market.
The transaction value comprises USD 562M, of which USD 350M corresponds to equity and USD 212M corresponds to working capital as of October 2018. The final transaction value is subject to working capital variation up to the closing date.
Chevron U.S.A. Inc. is a company owned by Chevron Corporation, the second largest integrated energy company in the United States. Its products are sold at nearly 8,000 Chevron and Texaco retail stations and it is also a major aviation fuel supplier, with four refineries with a combined capacity to process 919,000 bpd in the country.
The transaction is part of Petrobras' Partnerships and Divestments Program, in line with the 2019-2023 Business and Management Plan, which provides for the optimization of the company's portfolio.