Hydrocarbon Processing Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.

Brazil fines ex-Petrobras leaders $792 million for Texas refinery deal

07.24.2014  |  HP News Services

Brazil's audit court fined four former top officials of Petrobras, such as ex-CEO Jose Sergio Gabrielli, a combined $792 million for mismanagement in purchasing a US refinery.



Brazil’s audit court fined four former top officials of Petrobras, including ex-CEO Jose Sergio Gabrielli, a combined $792 million for mismanagement in the purchase of a US refinery.

The National Accounts Tribunal, which oversees public spending, fined Gabrielli and former heads of refining, production and international business units, Augusto Nardes, the president of the court known as TCU, said on July 23 in Brasilia after a ruling. The executives of the state-run company allegedly mismanaged public funds in the purchase of a 100,000 bpd refinery in Pasadena, Texas, according to the ruling, which orders the executives to pay the money back to Petrobras, as the state-controlled oil producer is known.

The $1.2 billion acquisition, which Petrobras completed in two stages between 2006 and 2012, is being investigated by the federal police, prosecutors and lawmakers for alleged overpayment of the assets. The seller, Astra Trading, had previously acquired the refinery in 2005 for $42.5 million.

The executives, including Gabrielli and former refining chief Paulo Roberto Costa, former international business head Nestor Cervero and then production chief Guilherme Estrella, have 15 days to appeal the ruling, according to the decision.

Petrobras didn’t immediately respond to an e-mail requesting comment on the case. The former executives couldn’t immediately be reached to comment on the fines.

TCU cleared Brazilian President Dilma Rousseff, who was the chairwoman of the company’s board of directors in 2006, and all other board members of any responsibility for the purchase price.

Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Related articles


Sign-up for the Free Daily HP Enewsletter!

Boxscore Database

A searchable database of project activity in the global hydrocarbon processing industry


On average, what range will Brent and WTI crude oil prices trade in during 2016?





View previous results

Popular Searches

Please read our Term and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2015 Hydrocarbon Processing. © 2015 Gulf Publishing Company.