Brazil’s Petrobras to spend $71.6bn on expansions, improvements

30 August 2012 17:49  [Source: ICIS news]

CAMPINAS, Brazil (ICIS)--Brazil-based Petrobras plans to modernise and expand its refining operations by investing $71.6bn (€57.3bn) by 2016 to add 400,000 bbl/day capacity, it said on Thursday.

There are 255 ongoing refining and supply projects, including the Abreu e Lima refinery and the first train of Comperj petrochemical complex, the company said.

"We have a great opportunity, which is our market,” said Jose Carlos Cosenza, Petrobras's supply director. “In the 2001-2011 period, while demand for gasoline in Brazil rose by 49%, the global market saw an increase of 15%”

Brazil’s diesel fuel demand increased by 43%, he said, while the international market demand increased by 29%.

The expansion projects alone will cost $24.9bn, Petrobras said. 

The projects will allow Petrobras to reduce diesel fuel imports, which are expected to reach 280,000 bbl/day by 2014. Imports would fall to 100,000-120,000 bbl/day with the projects.

"Comparing the results of the first quarter of 2012 with the first quarter of 2011, we're processing 61,000 bbl/day more", said Cosenza.

"By increasing throughput, we were able to add an average production of 83,000 barrels of oil products per day,” he said.

The refining modernisation will allow Petrobras to process more domestic oil, to increase the production of high-value oil products added into its product mix and to produce fuels with lower sulphur content, it said.

($1 = €0.80)

By: Leo Siqueira
+1 713 525 2600

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