Brazil union pushes to revoke refinery privatization

Brazil union pushes to revoke refinery privatization

Rio de Janeiro, 22 March (Argus) — Brazil's federation of oil workers union FUP is hoping a proposed constitutional amendment will unwind the $1.8bn privatization of the 333,000 b/d Mataripe refinery.

After years of failed legal challenges to Petrobras' sale of downstream assets, FUP says the proposed amendment from congressman Jorge Solla would see refineries, distributors and gas pipelines sold in recent years re-integrated into the state-controlled company.

The supermajority required to pass a constitutional amendment means the proposal from Solla, of the left-leaning Workers' Party (PT), will struggle to survive, although its introduction coincides with a domestic fuel price crisis that could see swift changes in the downstream segment.

Formerly known as the Landulpho Alves refinery (RLAM), Mataripe is the only divestment Petrobras has closed since the 2019 launch of a sales process covering seven other refineries. The refinery located in the northern state of Bahia has been operated by Acelen, a subsidiary of Abu Dhabi's Mubadala, since December 2021.

FUP claims Acelen has created a monopoly in Bahia where it dictates market rules without any competition. The company's multiple gasoline and diesel price increases means Bahia has the country's most expensive gasoline, according to FUP coordinator Deyvid Bacelar.

While Petrobras struggles to demonstrate