PAI’s stake in PRSI, PRSI Trading LLC
(PRST), and PRSI Real Property Holdings LLC (REAL), the company said.
Alongside the 110,000-b/d Pasadena refinery, the transaction will include sale of 5.1 million bbl of oil and
products storage capacity, an associated marine terminal and logistics system, existing inventory, and land on
the Houston Ship Channel usable for
potential future expansion.
The proposed sale follows PAI’s determination after a comprehensive analysis
that the Pasadena system does not align
with Petrobras’s strategic focus but may
have higher value for the right investor.
PAI has retained Evercore Group
LLC, an New York-based independent
investment banking advisory firm,
to explore the potential sale of PRSI,
PRST, and REAL with a select group of
possibly interested parties, which have
until before Feb. 23 to express their interest in the competitive purchase process, according to a Feb. 6 transaction
teaser released by Petrobras.
Petrobras previously said the refinery’s sale aligns with its 2017-21 strategic plan, which aims to reduce the
company’s operational risk and improve its overall financial performance
via an expansion of partnership and
According to the latest operational
data from Petrobras, the Pasadena re-
finery is equipped with the following
• Crude atmospheric distillation,
• Vacuum distillation, 42,500 b/d.
• Fluid catalytic cracking, 52,000
• Naphtha hydrotreating, 26,000
• Regenerative catalytic reforming,
• Reformate splitting, 20,000 b/d.
• Gasoline desulfurization, 40,000
• Alkylation (two units), 6,000 b/d
• Distillate hydrotreating, 12,000
ConocoPhillips has “entered 2018
with strong operational and financial
momentum,” said Chief Executive Officer Ryan Lance. Since the start of
the year, the company has paid down
$2.25 billion in additional debt, raised
its quarterly dividend rate by 7.5%, increased planned 2018 share buybacks
to $2 billion, and signed an agreement
to acquire Alaska assets from Anadarko Petroleum Corp., Houston. In the
deal, ConocoPhillips will bolt-on
Anadarko’s 22% non-operated interest
in the Western North Slope of Alaska,
as well as its interest in the Alpine
pipeline, for $400 million in cash. In
2017, gross production from the assets
was 63,000 boe/d.
Full-year 2018 production is expected to be 1.195-1.235 million
boe/d, the company said. First-quarter 2018 production is expected to be
1.18-1.22 million boe/d. Both production forecasts exclude Libya.
Guidance for 2018 production and
operating expenses and 2018 adjusted
operating cost is $5.7 billion.
sale of Pasadena
Downstream Technology Editor
Petroleo Brasileiro SA (Petrobras) is
moving forward with its previously
announced proposal to sell subsidiary Pasadena Refining Systems Inc.’s
(PRSI) refinery in Pasadena, Tex., in
compliance with the Brazilian operator’s divestments portfolio and a divestment plan from Brazil’s Federal
Court of Accounts, or Tribunal de
Contas da Uniao (TCU) (OGJ Online,
May 16, 2017).
Petrobras formally is seeking a
qualified buyer for affiliate Petrobras
America Inc.’s (PAI) interest in the
entire Pasadena refining operations
system, the sale of which includes
to Block 9 license
eases Lebanese rift
by Bob Tippee, Editor
Israeli Defense Minister Avigdor Lieberman probably didn’t think he’d stabilize
Lebanese politics when he challenged an
oil and gas license.
At a conference in Tel Aviv, Lieberman
called Lebanon’s awarding of offshore
Block 9 “very, very challenging and pro-
Lebanese President Michel Aoun
tweeted that Lieberman’s words repre-
sented “a threat to Lebanon and its right
to sovereignty over its territorial waters.”
Israel claims part of Block 9. Contracts
for Blocks 9 and 4, both won by a Total-Eni-
Novatek group in bidding last year, are to be
signed Feb. 9. The blocks are on trend with
deepwater gas discoveries off Israel.
Lieberman’s pointed commentary gave
Aoun and Nabih
Berri, the parliamentary speaker, com-
mon cause with which to ease a political
rivalry otherwise headed for crisis.
They hold two of three positions in a
government in which the president must
be Christian, the prime minister Sunni
Muslim, and the speaker Shia Muslim.
Longstanding resentment between
Aoun and Berri escalated in late December
when Aoun and Prime Minister Saad Hariri
issued a decree crediting 200 military
officers for service during a transitional
government Aoun led in 1988-90.
The decree apparently contributed to
Hariri’s decision to revoke the resignation he
announced from Saudi Arabia in November.
But Berri thought he and the finance
minister, a political colleague, should have
signed the decree, too. He also might fear
revival of cooperation between Christian
and Sunni factions at the expense of
Aoun’s accommodation of Hezbollah,
which receives support from Iran.
Hariri complained of rising Hezbollah
influence when he resigned.
Animosity between Aoun and Berri
worsened recently when a video emerged
showing a high-ranking member of the
president’s political group calling the
speaker a thug.
In what the Lebanese press called a
de-escalation of tension, however, the
antagonists spoke by phone on Feb. 2 and
planned talks on how to respond to the
Israeli defense minister’s saber-rattling
over Block 9.
Historical note: The bid round, Lebanon’s first, was delayed more than 3 years
by contentious politics.
(From the subscription area of www.ogj.com,
posted Feb. 2, 2018; author’s e-mail: bobt@