PDVSA fails to secure loan to pay stake in new Brazil refinery

08 February 2012 23:16  [Source: ICIS news]

BOGOTA (ICIS)--Petrobras, Brazil's state oil company, declined further comment on Wednesday on Petroleos de Venezuela’s (PDVSA) failure to secure a $10bn (€7.5bn) loan needed to pay for its 40% stake in a new Brazilian oil refinery.

The loan was denied after PDVSA failed to give the Brazilian Development Bank (BNDES) sufficient guarantees.

Petrobras and PDVSA are still in talks about the Abreu e Lima refinery despite this latest missed PDVSA deadline, Petrobras Chief Executive Jose Sergio Gabrielli told reporters on Tuesday in Rio de Janeiro.

Petrobras was to own 60% of the project and PDVSA 40%. The project is near Recife on Brazil's northeast coast.

"We've informed PDVSA that we've not received the guarantees in the proper time," Gabrielli said. "We are waiting to see where this goes. There are deadlines and processes, but it doesn't matter. The process goes on."

Petrobras has said it will complete the refinery and operate it with or without PDVSA.

PDVSA did not respond to calls seeking comment.

($1 = €0.75)

By: Leela Landress
+1 713 525 2653

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