* Central America, Colombia, Brazil all short of quality
(Adds executives comment, context on Petrobras bidding round)
By Marcelo Teixeira
SAO PAULO, Dec 3 Brazilian energy group Cosan
Ltd said on Tuesday its subsidiary Raízen is taking part
in the bidding round organized by state-run oil company
Petrobras for the sale of several refineries in the
Cosan's Chief Financial Officer Marcelo Martins told
analysts and investors Raízen was still at the analysis stage
regarding the possibility of buying a refinery from Petrobras,
and said that the return required would be quite high for the
Reuters reported last week that Raízen was among a group of
investors selected for Petrobras in the bidding round for the
first four refineries to be sold.
In total, Petrobras, or Petroleo Brasileiro SA,
plans to sell eight refineries in Brazil, including its large,
recently built Abreu e Lima unit, as the company wants to focus
on oil exploration (see table below). The company currently has
a near refining monopoly in Brazil, so the plan will open a
whole new area for private investment.
Martins said the fact that Raízen, a joint venture between
Cosan SA and Royal Dutch Shell Plc, controls a large
fuel distribution business in Brazil is a key factor behind its
interest in the refineries.
"We would not have looked into this if we didn't have the
distribution," he said.
Raízen operates Brazil's second largest fuel distribution
business, only behind BR Distribuidora, having a
chain of gas stations across the country under the Shell banner.
Among the aspects under evaluation for a possible refinery
move, Martins mentioned the price of the asset, the potential
for cost reduction once it takes the unit and the size of the
return on the investment, which "should be high enough to maybe
compensate the large risk of taking this type of investment".
Cosan's Chief Executive Marcos Lutz said the outlook finally
appeared more positive for the fuel market in Brazil, after
basically three years of contraction.
"The fuel market is reacting, we've seen sustainable growth
in sales for the last two months, we see organic growth coming
next year," he said.
Larger fuel sales could boost margins, Lutz said, which have
been tight due to the recent contraction.
See below details of the refineries put up for sale by
REFINERY LOCATION CAPACITY OPERATIONAL
(STATE) (BPD) SINCE
Abreu e Lima Pernambuco 230,000 2014
Landulpho Alves Bahia 323,000 1950
Gabriel Passos Minas Gerais 150,000 1968
Getúlio Vargas Paraná 207,000 1977
Alberto Rio Grande do 201,000 1968
Isaac Sabbá Amazonas 46,000 1957
Lubnor Ceará 8,000 1966
Unidade Xisto Paraná 5,800* 1972
*tonnes of shale per day
(Reporting by Marcelo Teixeira
Editing by Chizu Nomiyama and Tom Brown)
SAO PAULO British oil major BP Plc and U.S. commodities trader Bunge Ltd announced on Monday the completion of a deal to combine their sugar and ethanol operations in Brazil, creating the world's second largest cane processor.
SAO PAULO, Dec 2 British oil major BP Plc
and U.S. commodities trader Bunge Ltd announced on Monday
the completion of a deal to combine their sugar and ethanol
operations in Brazil, creating the world's second largest cane
SAO PAULO Brazilian President Jair Bolsonaro claimed on Friday that Hollywood star Leonardo DiCaprio financed fires being set in the Amazon rainforest, without presenting any evidence, the right-wing leader's latest broadside in casting blame over forest fires that have generated international concern.
SAO PAULO Agricultural machine manufacturers are working with banks in Brazil to avoid a repeat of slumping sales when public financing is expected to run out next year, the head of the local unit of U.S. tractor maker Deere & Co told Reuters on Thursday.
SAO PAULO, Nov 28 Domestic demand for corn is
expected to grow 6% in Brazil in 2020, driven by increasing
corn-ethanol production and buying from the meat industry, which
uses the cereal to make livestock feed, Dutch bank Rabobank
projected on Thursday.
SAO PAULO, Nov 28 Brazilian farmers are expected
to produce a record coffee crop in 2020, surpassing a previous
all-time high reached in 2018, as output is seen reaching 66.7
million 60-kg bags, Dutch bank Rabobank projected on Thursday.
(This November 26 story corrects name of partner to Pablo Fernandez, not Pablo Martinez.)
SAO PAULO A bid by U.S.-based fund Amerra Capital Management LLC to buy one of the mills from Brazilian sugar and ethanol producer Clealco failed to win approval from a group of creditors of the Brazilian company.