Brazil’s Petrobras to focus on petchems, plastics

06 December 2008 00:24  [Source: ICIS news]

SAO PAULO (ICIS news)--Brazil’s oil giant Petrobras plans to focus more on petrochemicals and plastics during the next few years, the president of the company said on Friday.

“We don’t want to be seen only as feedstock producers, but we do intend to extend our operations involving polypropylene (PP) and polyethylene (PE), especially PP”, Petrobras president José Sergio Gabrielli said in Portuguese.

He spoke at the 13th Annual Chemical Industry Meeting, sponsored by Brazilian Chemical Industry Association (Abiquim).  

Petrobras’ revised investment plans through 2012 will include total expenditures of $20bn/year (€16bn/year).

The government-controlled oil giant will prioritise the expansion of Brazil’s petrochemical industry, Gabrielli said.  

Petrobras announced it will reveal its revised investment plans through 2012 later this month.

He said the petrochemical industry would benefit from the company’s revised plan and that petrochemical expenditures could be increased in order to boost competition.

"Our investments planned for the petrochemical sector are currently in the order $8.6bn until 2012. We are revising the figures and they might go up,” Gabrielli said in Portuguese. 

The market has been questioning Petrobras’ financial situation after it requested loans from state-owned banks, but Gabrielli maintained an optimistic tone during the meeting.

Gabrielli also said that Petrobras wants to see more competition between Brazil’s two largest petrochemical producers, Quattor and Braskem.

Petrobras has a 40% stake in Quattor (Unipar controls 60%) and a 25% stake in Braskem’s controlling group.

($1 = R 2.51) ($1 = €0.78)

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By: Hellen Berger
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