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Petrobras postpones decision on buying Aruba refinery
CHICAGO
Petroleumworld.com, May 16, 2008
Petroleo Brasileiro SA, Brazil's state-controlled oil producer, has postponed a decision on whether to acquire a Valero Energy Corp. plant in Aruba that would boost the company's refining capacity by 14 percent.Directors of the Rio de Janeiro-based company, known as Petrobras, adjourned their meeting on Monday without making a decision on the proposed acquisition, said Alberto Guimaraes, chief executive officer for the company's US unit.
No new date has been set for the board to consider the transaction, Guimaraes said on Tuesday in a telephone interview.
Petrobras wants to acquire refineries outside Brazil and expand a Texas plant rather than export crude from offshore discoveries including Tupi, the Western Hemisphere's biggest oil find since 1976, Chief Executive Officer Jose Sergio Gabrielli said in a May 5 interview in Houston.
Petrobras owns stakes in 18 refineries that process about 2 million barrels of oil a day, or 85 percent of current output, said Lilyanna Yang, an analyst at JPMorgan Chase & Co. in New York.
Valero's Aruba plant can process 275,000 barrels of oil a day and includes two delayed coking units, which handle heavy crude similar to the grades in Brazil's offshore deposits.
San Antonio-based Valero acquired the Aruba plant four years ago for $627 million.
Story by Joe Carroll from Bloomberg
Bloomberg 15 05 08
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