The Arab Fund submits a partnership proposal to Petrobras Capital

On the 22nd of this month, Petrobras (PETR3; PETR4), headquartered in Rio de Janeiro, announced that it had received a call from the international investment company Mubadala Capital. The proposal aims to formalize discussions on the possibility of forming a strategic partnership to develop the downstream sector in Brazil, in line with the Memorandum of Understanding issued on September 4, 2023.

The initiative covers work related to conventional refining, as well as the development of a biorefinery in Bahia. The future goal of the partnership is to strengthen the business environment in this sector, and to enhance the supply of renewable fuels in Brazil. The business model to be considered will include future investments and joint development of new technologies in cooperation with Mubadala Financial Investments.

Mubadala Financial Investments, which controls the Mataribe Refinery (RefMat), and Acelen Energia Renovável SA (Biorrefinaria) through Acelen, presented the key terms and conditions of the potential partnership in its statement. Petrobras is evaluating the acquisition of a stake in these assets.

Petrobras (PETR3; PETR4)

The proposal is subject to internal evaluation by Petrobras. The company makes clear that any investment decisions will follow the planning and approval processes set out in its governance. These decisions must demonstrate technical and economic feasibility, in line with your 2024-2028+ strategic plan.

The production capacity of the Mataribe refinery, located in São Francisco do Conde, Bahia, is 333 thousand barrels per day. Its assets include four storage terminals and a set of oil pipelines linking the refinery to the terminals, with a total length of 669 km.

As for the biorefinery, the integrated biorefinery project includes plants to produce renewable diesel and sustainable aviation kerosene, using vegetable oils from local crops, with operations planned in Bahia and Minas Gerais. Petrobras will analyze Mubadala's financial investment proposal for a refining partnership in Bahia.