Brazil's Petrobras says contract for refinery sale terminated, Grepar to seek damages

Credit: REUTERS/SERGIO MORAES

Adds coments from Grepar

SAO PAULO, Nov 27 (Reuters) - Brazilian state-run oil company Petrobras PETR4.SA said on Monday that the contract for the sale of its LUBNOR refinery in northeastern Brazil has been terminated, while would-be buyer Grepar said it would take legal action against the oil giant.

Petrobras said the deal had gone bad after unspecified conditions were not met. Grepar, however, said the only obstacle to the deal's implementation was "Petrobras' own inaction."

Petrobras had agreed to sell LUBNOR, capable of processing 8,200 barrels of oil per day, to Grepar for $34 million last year.

The state-run firm said it is committed to maintaining LUBNOR's operations following the failed deal.

Grepar said it was "surprised" by Petrobras' decision, but that it will not insist on carrying out the deal.

Grepar will, however, take legal action against Petrobras, seeking compensation for the losses caused by the deal's collapse, it said.

(Reporting by Gabriel Araujo; Editing by Steven Grattan and Kylie Madry)

((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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