Engineering News

Brazil's Petrobras Acquires Full Control Of Pasadena Refining Systems
July 2, 2012

Brazil's government-run oil company, Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, will pay a total of $820.5 million to acquire a 50% stake that it doesn't already owned, assuming full control of Pasadena Refining Systems Inc and ending a legal dispute with a former partner, the company said over the weekend in a statement.

Petrobras, which acquired a 50% stake in Pasadena refinery in 2006 for $360 million, said it reached an agreement to buy the remaining stake from Belgium group Transcor Astra.

"Petrobras executed an agreement to end all existing lawsuits between the companies in the Petrobras System and the Belgian group Transcor Astra, controller of Astra Oil Trading. The lawsuits stemmed from the partnership period between Astra and Petrobras America Inc. (PAI), a subsidiary of Petrobras, in the Pasadena Refining System, Inc., owner of the Pasadena Refinery in Texas and the Trading Company," Petrobras said.

"The agreement also ends the ongoing legal issue regarding the arbitration process that had recognized Astra's put option for PAI's ownership interest (50%) of PRSI and the Trading Company," it added.

Under the deal, Petrobras will pay the put option value, set by a report dated in 2009, issued during the arbitration process mentioned above, plus interest and other legal expenses, totaling $ 820.5 million.

"This amount had already been provisioned for payment, almost in full, in Petrobras' financial statements, with the remaining amount of approximately $70 million to be included in the company's results for the second quarter of 2012," Petrobras said.

Source: Dow Jones Newswires

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