Petrobras disqualifies another competitor in refinery expansion tender

Only two consortiums continue negotiating with Petrobras in a tender to build a second refining train at its Abreu e Lima (RNEST) refinery, a source familiar with the matter told BNamericas.  

The Brazilian state-run firm disqualified Tenenge/OECI, which had been in talks for lots C and FG, where it originally bid 3.09 billion reais (US$555 million) and 2.8bn reais, respectively. 

Now, Petrobras is trying to negotiate the prices for lots A and E with Consag (3.2bn reais) and Construcap (1.12bn reais), respectively. 

Petrobras had previously disqualified bids for lots B, AB, as well as for lot CDE. There were no bids for lot D.

The most likely scenario is that all the lots will be put up for bidding again. “It's very difficult for Consag and Construcap to converge on the price Petrobras is aiming for,” said one source.

The oil giant plans to invest 6-8bn reais in the expansion of RNEST.

Works are scheduled to be completed in 2028, with the facility in Pernambuco state expected to reach oil processing capacity of 260,000b/d. 

The project will increase the production of derivatives, especially S10 diesel, to meet market demand.