State-owned oil company highlights recently launched National Fertilizer Plan, growth of agricultural sector as attractions
06/02/2022
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Petrobras’s fertilizer plant in Três Lagoas — Foto: Divulgação
Petrobras hired Bradesco BBI as the exclusive financial advisor to sell nitrogen fertilizer unit UFN-3, in Três Lagoas, Mato Grosso do Sul.
In February, the then-minister of Agriculture, Tereza Cristina, announced the sale of the plant to the Russian group Acron for an undisclosed amount. But the deal was canceled due to a lack of governmental approvals, as informed by Petrobras in April.
Among the terms of the deal disclosed Tuesday by Petrobras is the “mandatory and non-negotiable” commitment that the UFN-3 construction works be completed by the buyer.
The document highlights the recently launched National Fertilizer Plan and the growth of the agricultural sector as attractions for the unit. The plant has a projected capacity of 3,600 tonnes of urea and 2,200 tonnes of ammonia a day, with a consumption of 2.2 million cubic meters/day of natural gas.
“The urea production capacity would represent nearly 20% of Brazil’s apparent consumption of urea in 2020,” Petrobras said. Last week, Mato Grosso do Sul Governor Reinaldo Azambuja told TV show Globo Rural that three companies are interested in buying the fertilizer plant, without revealing names. One is said to be Unigel, which already operates in the Northeast region.
Petrobras will also offer a contract to supply natural gas for fertilizer production at the plant as part of the deal, but the item will be optional. UFN-3 is located near the Gasbol gas pipeline, with an interconnection of nearly 4 kilometers already completed.
Petrobras seeks a buyer with equity greater than $300 million or net revenues equal to or greater than $750 million. If it is a financial player, the interested buyer must have assets under management above $300 million. A joint offer may also be accepted, in the form of a consortium of interested buyers.
The construction works began in September 2011 but were halted in December 2014. Construction is 81% complete.
Source: https://valorinternational.globo.com/