Page 22 - DMEA Week 13 2021

DMEA NEWS IN BRIEF DMEA

“That will lead to growth of the company such as the flagship tourism project at the Red estimated to be completed by the first quarter
so stakeholders will own more money. In Sea, planned $500 billion Neom economic of 2022.
exchange the Saudi government will help zone and the entertainment hub at Qiddya. Of the eight refineries with 1.15 million
them with regulations, more subsidies and REUTERS barrels per day (bpd) of installed capacity,
other incentives.” binding proposals for Petrobras’ three
The prince said dividends for those owning refineries, namely REMAN in Amazonas,
shares in Aramco, which listed on the local REFINING LUBNOR in Ceara and SIX in Parana states
bourse in 2019, would remain stable. are still in progress.
“We promised them that and we will keep Petrobras finalises refinery Last December, Petrobras received the
that promise,” he said. The Saudi government binding offer for REFAP in the state of Rio
still owns 98% of the firm. sale to Mubadala Grande do Sul. Two other refineries, namely
Finance Minister Mohammed al-Jadaan RNEST in Pernambuco state and REGAP
told Reuters that 24 companies, the majority Petrobras PBR recently entered into an in Minas Gerais with production capacities
listed firms, would invest 2 trillion riyals by agreement to sell its Landulpho Alves Refinery worth 130,000 bpd and 166,000 bpd each are
2025 and another 3 trillion riyals by 2030. PIF (RLAM) and its related logistics assets to Abu slated to get binding offers in the first quarter
is a shareholder in most of them, he added. Dhabi’s Mubadala Capital for $1.65 billion, of this year.
Jadaan said the state would offer support, contingent on regulatory approvals. ZACKS
including soft loans from Saudi development For quite some time, Petrobras has been
institutions and tax incentives at free zones, looking for a lucrative divestment bid for its BPCL acquires OQ’s stake in
in line with World Trade Organization RLAM in the Brazilian state of Bahia from
guidelines. prospective buyers. Notably, in June 2020, Bina refinery
The crown prince said the government Mubadala Investment Company began
planned to offload its shares in companies exclusive talks with Petrobras authorities Bharat Petroleum Corporation Ltd (BPCL)
in coming years and to IPO projects it is after submitting the best offer to purchase on Wednesday signed a share purchase
launching. the company’s RLAM and getting the agreement to buy the 36.62% equity it does
“We will recycle the money. We shouldn’t invitation to negotiate the deal. However, not already own in Bharat Oman Refineries
keep our shares forever. Whatever mature discussions were stalled due to some reasons. Ltd (BORL) from OQ S.A.0.C.(formerly
investment we have we have to IPO. So for Then again last December, the state energy known as Oman Oil Company S.A.O.C) at Rs
example if you own 70% of a company, PIF producer mulled over a buyout option from 27 a share in a deal worth Rs 2,399.26 crore.
should maintain majority at 30% and sell the Mubadala Group. The acquisition will make the 7.8 million
40%,” he told journalists. Meanwhile, management informed that tonnes (mt) capacity refinery, located at Bina
The prince has said that Aramco would this state-run energy giant’s sale process of in Madhya Pradesh a wholly-owned unit of
sell more shares as part of plans to bolster Refinaria Presidente Getulio Vargas (REPAR) BPCL.
sovereign wealth fund PIF, the main vehicle in Parana state was unsuccessful and it chose “With the acquisition of OQ’s
for boosting Saudi investments at home and to halt the same. The deal fell through because entire stake in BORL, BPCL will establish
abroad. the binding offers that Petrobras received for control over BORL. This is expected to bring
The prince said on Tuesday that PIF is the refinery comprised conditions that failed immense advantages to both the companies
working with other sovereign wealth funds in to meet its economic-financial evaluation. in terms of synergies and optimization of
the region on a fund called “Invest In Saudi” However, now the company plans to resume returns and will facilitate any future expansion
that would be sized at 500 billion riyals to 1 the divestiture of REPAR shortly. or diversification in Bina†, N. Vijayagopal,
trillion riyals. Petrobras’ sale of eight refineries is Director (Finance) of BPCL said.
PIF is backing domestic mega-projects currently on track and all the divestments are BUSINESS LINE

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