July 9, 2020 / 11:40 PM / a month ago

EXCLUSIVE-Mubadala set for exclusive talks with Petrobras to buy Bahia refinery -sources

July 9 (Reuters) - Abu Dhabi’s investment fund Mubadala Investment Co is on an inside track to acquire Brazil’s second largest refinery, known as Rlam, after beating back competition from India’s Essar Group, three people close to the negotiations said.

Mubadala will discuss the contract terms with Brazil’s Petrobras in an exclusive negotiation expected to take several weeks, the people said on Thursday.

If the contract changes significantly, Petrobras will call back competitors for a second round of bids based on price, the sources said, declining to be named as the information is not public.

Indian conglomerate Essar also made a binding offer for Rlam, as Reuters reported in June, and could compete again for the refinery if Petrobras decides to retender it. {nL1N2E71QW]

Petrobras, Mubadala and Essar did not immediately respond to requests for comment.

A final winner will only be disclosed by Petroleo Brasilero SA, as the Rio de Janeiro-based company is known, after all stages are concluded.

Rlam, which is based in the northern state of Bahia and has a 330,000 barrels a day capacity, is the first of a group of eight refineries Petrobras plans to sell to end its near monopoly in fuel processing in Brazil. (Reporting by Sabrina Valle in Rio and by Carolina Mandl and Tatiana Bautzer in Sao Paulo; Editing by Tom Brown)

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