Brazil's Manguinhos refinery halts trading on expropriation news
* Manguinhos is only non-Petrobras refinery in Brazil
* State wants refinery land to build public housing
* Expropriation expected to cost $83.3 million
RIO DE JANEIRO, Oct 15 (Reuters) - Brazilian refiner Refinaria de Petroleos de Manguinhos asked the local stock exchange to halt trading of its stock after the government of Rio de Janeiro state said it plans to seize refinery land to build public housing, according to a company filing on Monday.
The company, the only refinery in Brazil not controlled by state-led oil company Petrobras, requested the trading halt on Sao Paulo's BM&FBovespa exchange to get more information on the government's plans, it said in the securities filing.
Manguinhos has refined about 3.5 million barrels of oil in the last 12 months, the filing said. That's less than two days of Brazilian oil output. Its refining activity has been limited for nearly a decade because of Petrobras' fuel price policies.
Because Petrobras does not raise domestic fuel prices in line with world prices, Manguinhos, which does not have oil production assets and must pay international prices for its crude, has found it hard to compete with Petrobras in the local fuels market.
In addition to refining, the company is also involved in distribution and owns port facilities.
It will cost between 170 million reais ($83.3 million) and 200 million reais to purchase Manginhos' assets and clean up toxic waste at the refinery site, the state government said.
The planned expropriation is part of the state's move to revitalize shanty towns that surround the refinery site north of Rio de Janeiro's downtown.
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