BY Brazil Stock Guide – Brazil’s oil regulator suspended operations at Refit, also known as the Manguinhos refinery in Rio de Janeiro, after uncovering irregular fuel practices. The suspension, announced Friday, is part of the “Cadeia de Carbono” (Carbon Chain) investigation into fraud in Brazil’s fuel sector.
The National Agency of Petroleum, Natural Gas and Biofuels (ANP) determined that Refit was not performing refining operations. Instead, the company allegedly imported unfinished derivatives and carried out only blending, according to Valor Econômico. “We found evidence of irregular imports and no refining process. ANP’s work is continuous in combating irregularities in the sector,” ANP director-general Artur Watt said at a press briefing.
The operation was carried out with support from Brazil’s Federal Revenue Service and the Navy. ANP director Symone Araújo noted that four superintendencies and 12 officers participated. “The regulated agent must meet certain conditions, but it has already been notified and operations are suspended,” she said.
Brazil’s Federal Revenue Service reported the seizure of BRL 290 million ($52 million) worth of fuel cargoes, including imported diesel meant for storage in Rio de Janeiro and São Paulo. “We believe the seizures from last week and this week have strong indications of involvement by the same groups. Minister [Fernando] Haddad gave us clear guidance to act firmly against organized crime,” said Mario De Marco, deputy secretary of customs administration.
He added that the seized products will undergo technical inspection to determine composition and characteristics. “There will be other operations in the coming weeks. The Federal Revenue will act strongly to prevent organized crime infiltration. We’ve already begun auditing facilities that would process the fuel,” De Marco said.
Refit, a privately held company, has not commented on the suspension.
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