Petrobras refinery sale in limbo

Downstream divestment programme at risk as federal office scrutinises auction

Brazilian regulatory authorities have baulked at the $1.65bn selling price of the Landulpho Alves refinery (RLAM), agreed between state oil company Petrobras and Emirati investment fund Mubadala, and are threatening to suspend the transaction pending further investigation. Petrobras had valued the facility, in Bahia state, at more than $3bn. It is one of eight refineries being touted as part of the NOC’s divestment drive. Earlier in the year, Petrobras terminated the sale of its Presidente Getulio Vargas refinery when binding proposals came in lower than its financial estimate. But offloading non-core assets is a priority for the Brazilian company to cut debt and refocus on its more profitab