Brazil’s Petrobras buys refinery stake from Repsol

* Petrobras buys back 30 pct stake at Refap

* Deal includes $500 million in debt assumption

SAO PAULO, Dec 14 (BestGrowthStock) – Brazilian state oil company
Petrobras (PETR4.SA: ) said on Tuesday it acquired full control
of Brazil’s fifth-largest refinery, Refap, from Spain’s Repsol
YPF (REP.MC: ) in an $850 million deal.

With the deal, Petrobras seeks gains in logistics and to
optimize the domestic processing and production of oil
products, which is key for Brazil’s goal to cut its dependence
on imported fuels.

Petrobras bought back a 30 percent stake at Refap it had
handed to Repsol in 2001 as part of an asset exchange between
the companies, the company said in a statement to the Brazilian
securities and exchange commission.

It will pay $350 million for the stake and take over $500
million in Repsol’s debt in Refap.

Refap’s refining capacity has been increased to 190,000
from 130,000 barrels per day since 2001 as it became able to
process heavier crude. It produces mainly diesel and gasoline,
in addition to petrochemical naphtha, propylene, LPG, jet fuel,
fuel oil, and asphalt.

(Reporting by Walter Brandimarte; Editing by Dave

Brazil’s Petrobras buys refinery stake from Repsol