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Petrobras defends Pasadena refinery purchase

Petrobras (PBR -4.4%) CEO Maria das Graças Foster defends the 2006 decision to buy a refinery in Pasadena, Tex., against allegations the company had dramatically overpaid, telling Brazil's congress it purchased the 100K bbl/day refinery to maximize returns on heavy Brazilian oil in the U.S. market.

Opponents of Pres. Rousseff are pushing for a formal investigation into the $1.2B purchase, which they say was made for 20x the true value of the refinery.

The figure comes from the $42.5M Belgium's Astra Oil supposedly paid for the refinery in 2005, but Foster says Astra actually paid $360M.

Foster also reiterates Rousseff's recent claim that the approval of the 50% stake purchase by Petrobras' board was based on a faulty report from a former executive who was subsequently demoted.

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Comments (3)
  • saratogahawk
    , contributor
    Comments (2539) | Send Message
    I don't claim to know the true value of this refinery but this differential at first blush is interesting. I would like to know more. Sure am glad I don't own PBR right now.
    15 Apr 2014, 11:46 AM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1414) | Send Message
    I very much doubt anyone can get a working 100k bbl/day refinery for 40 million dollars.
    15 Apr 2014, 12:13 PM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1466) | Send Message
    They overpaid by how much ?


    Please tell me they are not shipping that gas back to Brazil.
    15 Apr 2014, 12:14 PM Reply Like
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