Following the sale, Petrobras will become the only shareholder of the refinery, which has a nominal capacity of 190,000bbld.
As per the terms of the agreement, Repsol will receive $350m and additionally will reduce its consolidated debt associated to its stake in the REFAP refinery by a further $500m.
The sale will free Repsol from investment commitments of $355m corresponding to its stake in REFAP.
The difference between the accounting value of REFAP and its sale price, once the appreciation of the local currency is taken into consideration, is of approximately $60m.
The deal is part of the Repsol Group’s divestment of non-strategic assets as laid out in the Horizon 2014 strategic plan.
Specifically, this deal completes the process of divesting stakes in non-integrated downstream assets in Latin-America which Repsol began in 2007.
The process included the sale of service stations in Chile (2007) Ecuador (2008) and Brazil (2008), and the stakes in the Brazilian refineries Manguinhos (2008) and REFAP (2010).
In total, Repsol obtains $700m by this process and reduces consolidated debt by approximately $500m.
