By ROGERIO JELMAYER

SAO PAULO -- Brazil's government-run oil company Petroleo Brasileiro SA, or Petrobras, is in talks to buy the local privately-owned refinery Refinaria de Petroleo Manguinhos SA for at least 2 billion Brazilian reais ($1.1 billion), reported the local newspaper Folha de S. Paulo over the weekend.

Petrobras is holding talks with Manguinhos' controller Grupo Andrade Magno, said the newspaper, which didn't unveil where it got the information.

Petrobras and Manguinhos officials weren't immediately reached for comment.

According to the newspaper, recently the local oil company OGX Petroleo e Gas Participacoes S/A, part of billionaire Eike Batista's EBX Group, tried to acquire Manguinhos.

However, the company's controller refused OGX's proposal.

Manguinhos has a market share in the local refinery industry of 2.1%, the company said on its website.

Dow Jones Newswires