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Repsol sells refinery stake to Petrobras

Spanish energy giant Repsol has agreed to sell its 30 percent stake in Brazilian refinery Refap to Brazil’s state-run oil producer Petrobras for 350 million dollars, the company said Tuesday.

Petrobras will become the sole shareholder in the refinery in Rio Grande do Sul, Brazil’s southernmost state, once the deal is completed, Repsol said in a statement.

The deal will reduce Repsol’s consolidated debt by around 500 million dollars (375 million euros) and free the company from commitments to carry out investments worth 355 million euros at the refinery, it added.

Refap is Brazil’s fifth largest refinery with capacity of 190,000 barrels per day.

The transaction is part of Repsol’s strategy of selling its non-strategic assets which has since 2007 led the company to sell service stations in Brazil, Chile and Ecuador as well as its stake at another Brazilian refinery, Manguinhos located in Rio de Janeiro.

In October, Repsol announced the sale of 40 percent of its Brazilian affiliate, Repsol Brazil, to China’s largest oil group, Sinopec, for 7.1 billion dollars.

It said at the time that the funds raised in that deal would be used to meet the investments needed to tap Brazil’s massive offshore oil reserves.