Brazil’s Petrobras explores refining alliance with Mubadala

Petrobras will explore a proposal from Abu Dhabi’s Mubadala Capital on developing a downstream and biorefining partnership in the northeastern state of Bahia, the Brazilian state-run oil company said in a statement.

“The aim of the future partnership is to strengthen the business environment in the sector and increase the supply of renewable fuels in our country,” the company added.

The business model to be analysed will consider future investments and the development of new technologies in conjunction with Mubadala Capital.

Petrobras will also evaluate the acquisition of a stake in Mataripe Refinery and Mubadala-owned Acelen Renewable Energy.

Mubadala Capital acquired the 333,000 barrels per day Mataripe refinery in November 2021 for $1.65 billion.

Brazil’s mines and energy minister Alexandre Silveira backed a Mataripe buyback in September, while Petrobras CEO Jean Paul Prates said last month that it was “a possibility”, Reuters reported.

“The aim of the future partnership is to strengthen the business environment in the sector and increase the supply of renewable fuels in our country,” Petrobras said.

In September, the Brazilian company signed an agreement to explore joining Mubadala in its downstream operations in Bahia, including a biorefinery in which the Abu Dhabi fund estimates $2.5 billion in investments will be needed.