-- Brazilian oil giant Petrobras is in talks to reacquire the Mataripe refinery from Abu Dhabi's Mubadala to bolster security of domestic fuel supply, Reuters reported Monday citing sources.
President Luiz Inacio Lula da Silva previously signaled an intent to bring the facility back under state control, reversing a divestment made during the administration of his predecessor, Jair Bolsonaro, the report noted.
Following these remarks, Petrobras confirmed it would analyze the feasibility of a deal, which sources indicated could be finalized by the end of this year, as per the report.
Expanding refining capacity has become a top priority for the Lula administration as the US-Israel conflict with Iran continues to drive global diesel prices higher.
Brazil currently remains highly vulnerable to these international price shocks, as it depends on foreign markets for roughly one-quarter of its total diesel needs.
Neither party involved immediately responded to' request for comment.
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