PDVSA exits and Petrobras takes over 100% of the refinery.
The Abreu e Lima Refinery, which is being built by Petrobras in Pernambuco, will no longer have the Venezuelan company PDVSA as a partner and, starting November 1st, will be incorporated as a business unit of the Brazilian state-owned company. The unit was designed from the beginning to have participation and investments from both companies, but the investments from PDVSA never materialized, the project cost exceeds US$17 billion, and construction is four years behind schedule.
SAO PAULO, Sept 24 (Reuters) - The Abreu e Lima Refinery, which is being built by Petrobras in Pernambuco, will no longer have the Venezuelan company PDVSA as a partner and, starting November 1st, will be incorporated as a business unit of the Brazilian state-owned company, the newspaper Valor Econômico reported on Tuesday.
"Abreu e Lima will cease to exist as a company and will be incorporated as a business unit of Petrobras," the publication said, without citing sources.
The unit was designed from the outset to have participation and investment from both companies, but the investments from PDVSA never materialized.
The refinery's cost exceeds $17 billion, and construction is four years behind schedule, according to the newspaper.
Contacted by Reuters, Petrobras said it would not comment on the matter.