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20/02/2017 - 16:10hs

Government wants foreign investment in refineries

The Brazilian federal government will create rules in a bid to attract international capital into the oil refinement market, currently near single-handedly dominated by state-run company Petrobras.

Recife – The Brazilian federal government will create rules designed to draw foreign investors into the oil refinement market – which is almost completely controlled by the state-owned oil company Petrobras. The Pernambuco state refinery Abreu e Lima, now operating at half-capacity, will likely be made available to private players via a partnership scheme. The industry’s reorganization will be dictated by the Combustível Brasil (Brazil Fuel) program launched this Monday (20) by minister of Mines and Energy Fernando Bezerra Filho at the offices of the Federation of Industries of the State of Pernambuco (Fiepe), in Recife.

Suggestions from the private sector, existing refineries, government agencies, and Petrobras will be taken into consideration in forging a new regulatory framework for the industry, geared towards attracting foreign investors and improving rules of access, port infrastructure and fuel supply terminals, as well as steering asset pricing towards long-term investments. The plan is to increase the market’s role in industry regulation, according to the secretary for Oil, Natural Gas and Renewable Fuels at the Brazilian Ministry of Mines and Energy, Márcio Félix.

*Translated by Gabriel Pomerancblum

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