Brazil Comperj delays may cause R1.4bn loss for Petrobras

04 October 2013 20:08  [Source: ICIS news]

CAMPINAS, Brazil (ICIS)--Brazil's federal accountability office (TCU) has found several irregularities in the construction of a series of pipes that connect the units of the refining, utilities, transportation and stocking portions of Petrobras's Comperj project, and these could cause a reais (R)1.4bn ($636m, €464m) loss to the company, it said.

Petrobras did not have an immediate comment on Friday.

According to a TCU report filed on 31 July, the pipes are the backbone of the petrochemical complex and without it "none of the process units of the complex can be made".

According to TCU fillings, the construction of the pipes was scheduled to begin in December 2011 and should be complete by March 2015.

Petrobras has faced delays regarding the construction of the pipes, and these could cause a R1.4bn loss for the company, the TCU said.

Petrobras told the TCU that financial difficulties, rain and strikes have been delaying the construction of the pipes.

Regarding the rain, the TCU said the R732m contract that Petrobras has with MPE Montagens e Projetos Especiais had already foreseen that the contractor should adopt measures to address it.

According to the TCU, Petrobras had disqualified three other companies, which offered better prices to construct the pipes.

Earlier, the TCU said it had found price overruns in the construction of pipes at Comperj by MPE.

The Complexo Petroquimico do Rio de Janeiro (Comperj) is a massive project, with Petrobras planning to build two refineries and Braskem developing several chemical units.

Those units will include a world-scale ethane cracker, along with downstream polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC) units.

The completion date for the Comperj project has been delayed until August 2016, according to Petrobras.

($1 = €0.73, $1 = R2.20)

By: Leo Siqueira
+1 713 525 2600

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