Petrobras (PBR) is in initial talks to reacquire the Mataripe refinery in Brazil from Abu Dhabi's Mubadala sovereign wealth fund, with an agreement possible by the end of the year, Reuters reported Monday, citing two sources with knowledge of the matter.

The refinery is Brazil's second largest but is only operating at 60% capacity, while Petrobras' facilities are operating at their limit in a bid to increase local production, one of the sources reportedly said.

Petrobras and Mubadala did not immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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