Petrobras and Petroperu mull $1bn petchem deal

23 January 2008 23:29  [Source: ICIS news]

HOUSTON (ICIS news)--State-run Petrobras of Brazil and Petroperu of Peru could invest up to $1bn (€680m) together in a petrochemical complex in Peru, according to a media report released on Wednesday.

As reported by ICIS news in November, Petrobras had been seeking opportunities related to petrochemicals in South America, especially in Peru, company officials said. The project was expected as a first stage in the development of the Camisea gas fields in Peru, analysts told ICIS.

Petrobras and Petroperu are partners in a natural gas project in the country.

According to a report on Wednesday by Reuters, Petroperu president Cesar Gutierrez said that the ammonia complex planned could cost between $800m-1bn with a capacity of 750,000 tonnes/year. He did not specify how much each company would invest.

Construction would not begin for two to three years, Gutierrez said.

Separately, CF Industries in December said it was committed to a $1.2bn-1.3bn ammonia/urea project in Peru following agreement on feedstock supply, according to senior vice-president for operations David Pruett.

($1.00=€0.68)

By: John Waggoner
+1 713 525 2653

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