Petroleo Brasileiro SA Petrobras (ADR)(NYSE:PBR) Commences A Competitive Procedure For The Sale Of Araucária Nitrogenados SA

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Petroleo Brasileiro SA Petrobras (ADR)(NYSE:PBR) reported that it has commenced the process for the sale of Araucária Nitrogenados SA, which operates in Araucária, and the Fertilizers Unit-III, whose plant in Três Lagoas is 80.95% complete. The program is part of the integral exit plan of fertilizer production, as stated in the 2017 to 2021 Business & Management Plan.

The details

Petroleo Brasileiro reported that the sale of units will be done together and the entire procedure will follow its disinvestment mechanism, a document that is aligned with the instructions of the Federal Court of Audit, which mentions the processes for selling the firm’s assets. The UFN-III construction was interrupted in 2014, with around 80% of physical progress done. Since then, they have retained the facilities preserved. With the asset transfer to the future buyer, the activities for the close of the project may be restarted.

Araucária Nitrogenados SA is a wholly-owned subsidiary unit of Petroleo since 2013, established in 1982. From the asphalt residue, the firm is capable of producing 1,975 tons/ day of urea and 1,303 tons/day of ammonia and, for application in the fertilizer and chemical industries. It also manufacturers 450 m3/day of the “ARLA 32”, a chemical that acts on the decline of nitrogen oxides released by the exhaust gases of large automobiles.

The plant possesses a production capacity of 200 tons/day of CO2, which is offered to industrial gas manufacturers, 75 tons/day of pelletized carbon, which is offered as boiler fuel and 6 tons/day of sulfur, used in numerous applications.

Petroleo reported that the UFN-III works started in September 2011 and showcase a physical advance of around 81%. The unit will utilize as raw material handled natural gas, with an anticipated average use of 2.2 million m³/day. Also, the ammonia segment will have capacity to manufacture 2,200 tons/day and urea, 3,600 tons/day.

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