Petrobras to double refined products despite cut in downstream budgets

24 March 2014 00:00 Source:ICIS Chemical Business

Brazil’s energy giant Petrobras plans to almost double output of refined products by 2030, despite it introducing a new business plan that seeks to reduce spending in downstream operations.

CEO Maria das Gracas Foster said the company expects production of oil derivatives to increase from levels of around 2m bbl/day to an average 3m bbl/day by 2020 and 3.9m bbl/day by 2030.

The increase in production is needed to meet the domestic demand for oil products, which is set to grow by 20% by 2020 and 47% by 2030, Gracas Foster said, adding the increased output would “guarantee self-sufficiency in derivatives by 2020”.

However, in the company’s revised 2014-2018 business plan investments in refining will drop to $38.7bn (€27.9bn) from the $64.8bn outlined in the previous five-year plan to 2017.

In downstream operations, the company will continue to spend on projects that are already underway. These include the 230,000 bbl/day Abreu e Lima refinery, the first phase of the Complexo Petroquimico do Rio de Janeiro (Comperj), and the construction of 45 transportation vessels for oil and oil products (Promef), as well as on the Premium I and Premium II refineries that are in the bidding stages.

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