Cost for Brazil Comperj project rises to R26.6bn from R8.4bn

07 October 2013 20:00  [Source: ICIS news]

wo CAMPINAS, Brazil (ICIS)--Petrobras now expects that the total cost to develop the Comperj project will reach reais (R)26.6bn ($12.0bn, €19.7bn), up from the earlier estimate of R8.4bn in 2009, the Brazil state energy producer said on Monday.

For the Complexo Petroquimico do Rio de Janeiro (Comperj), Petrobras will build two refineries and Braskem will develop 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.

The company did not give a reason behind the higher cost estimate.

However, Brazil's federal accountability office (TCU) has found several irregularities at the site.

Petrobras has faced delays regarding the construction of a series of pipes that connect the units of the refining, utilities, transportation and stocking portions of Comperj, and these could cause a R1.4bn loss for the company, according to the TCU.

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

"The process at TCU continues, as there's still an appeal pending [in TCU] from the company," Petrobras said.

($1 = €0.74, $1 = R2.21)


By: Leo Siqueira
+1 713 525 2600



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