Petrobras on Jan. 24 reported that it has closed the competitive process for the sale of Unidade de Fertilizantes Nitrogenados III (UFN-III). The company indicated that the sale had reached the binding phase. Petrobras renewed its efforts to sell UFN-III last May (GM June 3, 2022), after two attempts to sell the plant to Russia’s Acron Group fell through (GM April 29, 2022).
UFN III, located in Três Lagoas, in the state of Mato Grosso do Sul, is only about 81% complete. Construction commenced in September 2011, but was interrupted in December 2014. Upon completion, the unit was expected to have a projected urea and ammonia production capacity of 3,600 m/d and 2,200 m/d, respectively. Petrobras expected any buyer to complete the plant.
In December, Petrobras halted the competitive procedure for the sale of its wholly-owned nitrogen fertilizer plant, Araucãria Nitrogenados, known as ANSA, in the southern Brazilian state of Paraná (GM Dec. 23, 2022).
Recent reports have indicated that Brazil’s new leader, President Luiz Inácio Lula da Silva, wants to keep these Petrobras assets, if not expand them (GM Jan 20, p. 29; Jan. 13, p. 31).