Petrobras Finds Oil Near Barracuda

Petrobras News Agenc Date: 02/25/2010 15:15
















Petrobras announced the discovery of two new oil accumulations in reservoirs located in the Campos Basin, after the drilling of the exploratory well 6-BR-63A-RJS, located in the Barracuda concession area, some 100 km off the coast of the State of Rio de Janeiro, and at water depth of 860 meters.

One of the accumulations was discovered in pre-salt carbonate reservoirs, at a depth of 4,340 meters. Preliminary estimates indicate the presence of light oil (28 degrees API), with recoverable volumes of approximately 40 million barrels and the tests indicated a good productivity in the reservoirs.

Additionally, with well 6-BR-63A-RJS, another oil accumulation was also discovered in sandstone post-salt reservoirs. The volume of recoverable oil has been estimated at 25 million barrels in this accumulation. Diamond Offshore's Ocean Worker semisub drilled exploratorty well 6-BR-63A-RJS.

Taking advantage of the production and outflow infrastructure already installed in the area, the Company is analyzing interconnecting well 6-BR-63A-RJS to Platform P-43, which is currently in operation at the Barracuda field. The discoveries will be the object of an Evaluation Plan, to be submitted to the National Petroleum, Natural Gas and Biofuel Agency (ANP) soon.

Schlumberger Snaps Up Smith

Oil services firm will buy smaller player in $11B deal.

Rumors of an impending takeover sent shares of oil well services firm Smith International soaring Friday, and the offiical announcement of the deal meant more of the same on Monday.
The maker of products used during drilling for oil and natural gas was still riding high after Schlumberger announced the takeover, valued at more than $11 billion.forbes:http://www.forbes.com/2010/02/22/schlumberger-smith-international-Schlumberger paid a significant premium in the stock-for-stock deal, which values shares of Smith International at $45.84, a 37.5% premiium to the closing price Feb. 18. The deal signifies an effort to diversify its holdings amid competition with the likes of Halliburton .

With shares of Schlumberger down 3.6% to $61.62 Monday the deal, which offers 0.6966 shares of Schlumberger for each Smith share, was worth $42.92 a share. Smith was trading at $41.10, a 9% gain on the session but 4.2% below the offer price.
"Smith’s drilling technologies, other products and expertise complement our own, while the geographical footprint of Schlumberger means we can extend our joint offerings worldwide," said Schlumberger CEO Andrew Gould.

The two companies have a joint venture hydrocarbon exploration and supply company M-I Swaco. Schlumberger expects to close the deal in late 2010 and see pre-tax synergies of $160 million in 2011.

Odebrecht to Step Up Bioethanol Expansion

Feb. 19 (Bloomberg) -- Sojitz Corp. and Odebrecht SA may increase production at their Brazilian bioethanol venture three years ahead of schedule by merging with a local rival.

ETH Bioenergia SA, the venture, plans to raise annual production of the fuel to 3 million kiloliters by 2012 after merging with Brenco Holdings SA. The venture had planned to meet the target by 2015, Yoshikazu Ichikawa, a spokesman with Tokyo- based Sojitz, said today by phone.

The merged company plans to invest 175 billion yen ($1.9 billion) to develop facilities in Brazil, Ichikawa said. Other Japanese trading companies have been investing in the ethanol projects in the South American countries to meet demand for the alternative fuel back home.

Itochu Corp. has a bioethanol plant in Santa Juliana, which produced 0.17 million kiloliters last year, spokesman Yasuhiro Terashita said today by telephone. Osaka-based Itochu will start another bioethanol project in Tocantins later this year.

Brazil’s Odebrecht owns two-thirds of ETH Bioenergia and Sojitz the remainder. ETH Bioenergia will control 65 percent of the combined company with Brenco, according to a statement from Sojitz on its Web site today.

Smith International May Have Several Suitors

Rumored takeover by Schlumberger could be worth over $8B, but analysts say other potential bidders are lurking.

With signs of an M&A recovery picking up across a number of sectors, there has been chatter that suggests another blockbuster in the oil services space may be on the way.

Shares of oil and gas company Smith International surged 13% to close at $37.70 Friday on reports that said larger industry rival Schlumberger Limited ( SLB - news - people ) might be in talks to acquire the company in a deal that one analyst estimates could be worth north of $8 billion.


Canaccord Adams analyst John Tasdemir said he would not be surprised if Schlumberger were courting Smith, adding significant synergies given the businesses’ overlap in their joint venture, MI Swaco, a hydrocarbon exploration and production company. Schlumberger has a significant cash balance of nearly $5 billion and has openly talked about growing its business both organically and inorganically through acquisitions, Tasdemir told Forbes, including discussions about Smith International specifically. Smith would add drill bits, solids control and supply management to Schlumberger’s business, the analyst noted.

“It’s logical that [Schlumberger] would be talking to Smith,” Tasdemir said, because Schlumberger is “the most logical player and would be able to pay the most for [Smith].” Tasdemir could not say when he expects a deal to be announced, but anticipates Schlumberger will bid a per-share price at a 20% premium to Thursday’s closing price, or $39.66 per share. At that price, the deal could be worth $8.7 billion.

Smith International could not be reached for comment, and messages left for Schlumberger were not returned.

A potential Schlumberger-Smith would come on the heels of August's $5.5 billion acquitision of oilfield services firm BJ Services ( BJS - news - people ) by rival Baker Hughes ( BHI - news - people ). At the time, Baker Hughes said the merger would allow it to broaden its product line and take on the industry's giants such as Halliburton ( HAL - news - people ) and Schlumberger for projects that require multiple services.

Inpex Snaps Up Stake from Shell Offshore Brazil

Date: 02/19/2010 14:34

Inpex has been granted approval by the Brazillian authority, ANP, to aquire a 15% participating interest of the Block BM-ES-23 from Shell Brasil Ltda. (Shell), through its wholly owned subsidiary Inpex Petróleo Santos Ltda. (IPSL).

The Block is located 100km off the coast of the state of Espírito Santo, which covers an area of 723km2, with a water depth ranging from 1,800m to 2,000m. In this Block, Petrobras will continue to operate with a 65% participating interest, Shell with a 20% participating interest and IPSL with a 15% participating interest.

The Block lies in Espírito Santo basin where large reserves of oil and gas have been discovered and developed.

Inpex has been focusing upon areas offshore Brazil as one of its international business core areas. In Brazil, Inpex is participating in the Frade oil field development project, which began production in 2009, and also in the Block BM-C-31. The acquisition of the Block BM-ES-23 will further expand the Inpex's petroleum exploration and development activities in Brazil.

Oil discovery in Angola

Date: 02/18/2010 12:22


Petrobras announces two new oil discoveries in block 15/06, in deep Angolan waters. The Company holds 5% stakes there, and Eni Angola with a 35% share, will be the operator. The discovery is the outcome of the drilling of pioneer wells Nzanza-1 and Cinguvu-1, which are located around 350 km northwest of Luanda, in a water depth of some 1.400 meters.

During the production tests that were carried out, the Nzanza-1 well produced oil with a density of 18 API gravity at rates above 1,600 barrels/day. At Cinguvu-1, the production test reached a maximum flow of 6,400 barrels/day of oil with a density of 23 API gravity. The other partners are Sonangol P&P (15%), SSI Fifteen Limited (20%), Total (15%), Falcon Oil Holding Angola AS (5%), and Statoil Angola Block 15/06 AS (5%).

Five oil discoveries have already been made in Block 15/06, including the Cabaça Norte-1, Sangos and Ngoma, in addition to Nzanza-1 and Cinguvu-1 wells. More exploratory wells are scheduled to be drilled during 2010.

Mitsui joins Anadarko's Marcellus effort

HOUSTON, Feb. 16 -- Mitsui E&P USA LLC will earn a 32.5% interest in 100,000 net acres held by Anadarko Petroleum Corp. in the Marcellus shale gas play in north-central Pennsylvania for $1.4 billion.

Mitsui will earn the interest by funding all of Anadarko’s share of development costs in 2010 and 90% of costs after that, completing its funding obligation by about 2013. The agreement, subject to regulatory approvals, is to close on Mar. 15 and is effective Jan. 1.

Mitsui will also have the option to buy 32.5% of Anadarko’s existing wells and additional acreage acquisitions by reimbursing a proportionate share of Anadarko’s prior expenditures, currently estimated at $100 million.

Anadarko said its fairway position in the Marcellus has a gross unrisked resource potential of more than 30 tcf and spans more than 715,000 gross acres. The companies said more than 4,500 wells are likely to be drilled within 10 years.

Mitsui projected net peak production at 360-460 MMcfd, $3-4 billion in project costs, and a 60-year production life.

Anadarko’s acreage extends from Bradford and Sullivan counties on the northeast across Tioga, Lycoming, Potter, Clinton, Centre, and Clearfield counties to the southwest.

Brazil's ETH, Brenco to merge in ethanol deal

SAO PAULO, Feb 17 (Reuters) - Brazilian biofuel producers ETH and Brenco will announce a plan on Thursday to merge their operations, creating one of world's largest makers of renewable fuel.

Stocks | Mergers & Acquisitions

The formal announcement of the combination will take place in Sao Paulo at 1500 local time (1700 GMT) on Thursday, according to a joint statement by the companies distributed on Wednesday. No details about terms of the deal were disclosed.

The ETH-Brenco merger would create a company with a capacity to crush 37 million tonnes of cane per year and produce 3 billion liters of ethanol by the 2013-2014 crushing season.

Mergers and acquisitions have been gaining momentum in Brazil's sugar and ethanol sector since the credit crisis hit mills that took on too much debt in past years to leverage their expansion. Brenco, an ethanol group backed by venture capitalist Vinod Khosla and AOL (AOL.N) founder Steve Case, had its expansion plan thwarted by the impact of the 2008 credit crisis as it ran out of cash.

ETH is a biofuel venture owned by civil construction group Odebrecht.

Shell to Join Brazil’s Cosan in Ethanol Joint Venture

Cosan, the Brazilian sugar and biofuel giant, said Monday it will merge its ethanol and fuel distribution units with Royal Dutch Shell in a joint venture worth up to $12 billion, extending the trend of growing foreign investment in alternative fuels, Reuters reports.

The deal will significant expand Shell’s Brazilian ethanol operations and follows in the footsteps of rival BP, which in 2008 took a stake in a Brazilian biofuel project and unveiled $1 billion in investments.

Shares of Cosan jumped more than 6 percent in Sao Paulo, while Shell rose nearly 1 percent in London.

“It’s a vote of confidence from an oil major for the Brazilian ethanol industry — one of the most ecological and sustainable alternative fuels,” Jonathan Kingsman, managing director of Kingsman, a Swiss ethanol and sugar consulting firm, told Reuters.

“I expect more interest from the oil companies in Brazilian ethanol, both in production and distribution,” he added.

The deal will extend Cosan’s fuel distribution business in Brazil after the company took over Exxon Mobil’s Esso unit in 2008 for nearly $1 billion. Cosan last month also agreed to buy a local chain of filling stations called Petrosul for an undisclosed sum.

Oil companies and major global investors have been searching for partnerships in Brazil’s ethanol sector, which is still largely dominated by family firms with complex ownership structures.

Shell has been looking for opportunities in Brazil’s ethanol industry for years. Bunge struck a deal in December to buy sugar and ethanol producer Moema for $452 million, while French commodities company Louis Dreyfus said in October that it would take over Santelisa Vale for an undisclosed sum.

Cosan said the Shell deal would help it gain greater access to Brazil’s thriving ethanol retail market as the combined company would be the country’s third-largest fuel distributor, with 4,500 filling stations around the country.

The combined entity will have about 40 billion reais in annual sales, Cosan’s chief financial officer, Marcelo Martins, said on a conference call with analysts and investors.

Cosan said it had 180 days to discuss the nonbinding memorandum of understanding exclusively with Shell International Petroleum Company.

As part of the transaction, Cosan will transfer its sugar, ethanol, fuel distribution and energy generation business to the merged entity, with assets valued at $4.93 billion and debt of $2.52 billion.

Cosan said Shell would contribute its retail fuel and aviation distribution business and inject about $1.63 billion into the merged company in up to two years. Cosan will contribute another $300 million in cash over five years.

Cosan and Shell will have the option of buying each other’s stake in the venture after 10 years, with the price to be determined at the time of purchase.

Brazil Petrobras Makes Oil Find Near Pampo Field In Campos Basin

RIO DE JANEIRO (Dow Jones)--Brazilian state-run energy company Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, said Thursday that it had discovered oil in the Campos Basin off the country's coast.

Petrobras said that the 4-PM-53 well found oil in shallow waters about 6 kilometers from the Pampo field, where the company currently produces oil. Recoverable reserves from the well were estimated at 25 million barrels.

The discovery's location near the Pampo and Bicudo fields will allow the company to accelerate development of the new find, using existing infrastructure.

Tests indicated an initial production capacity for 3,000 barrels a day, and production is expected to start later this year. The well will be connected to the PPM-1 platform at Pampo or the P-7 platform at Bicudo, Petrobras said.

Oil at the well was rated at 20 degrees on the American Petroleum Institute's rating scale.

"The discovery is the fruit of an exploration strategy to intensify work near existing fields in production, with an eye toward utilizing existing infrastructure to reduce production costs and accelerate production of new oil volumes," Petrobras said in a filing with stock regulators.

Petrobras to speed up natural gas production in Amazon

Source: BN Americas
Date: 02/11/2010 15:08

Brazil's federal energy company Petrobras (NYSE: PBR) is planning to build a new gas pipeline in the country's Amazon region as part of an effort to boost local natural gas production, a spokesperson for the group told BNamericas.

"Petrobras is planning a new pipeline to connect four wells in the Juruá field. Each well will be able to produce more than 500,000m3/d," the spokesperson said.
In November last year, Petrobras inaugurated the Urucu-Coari-Manaus gas pipeline in the northern state of Amazonas.

The pipeline is 661km long and connects the Urucu municipality to Amazonas state capital Manaus. The pipeline is capable of transporting 4.1Mm3/d of natural gas.

Petrobras invested 4.6bn reais (US$2.5bn) in the project and will invest more in the coming years to build new natural gas facilities in the region, the spokesperson added.
Petrobras' gas reserves in the Amazon region, at 52.8Bm3, are the second largest in Brazil after Rio de Janeiro.

Vale consolidates the acquisition of Fosfertil

Rio de Janeiro, February 10, 2010 – Vale S.A. (Vale) informs that it has entered through its subsidiary Mineração Naque S.A. into an option contract with The Mosaic Company (Mosaic), a company listed on the New York Stock Exchange (NYSE), giving it the right to buy shares of Fertifos Administração e Participações S. A. (Fertifos) and Fertilizantes Fosfatados S.A. – Fosfertil (Fosfertil), a company listed on the BM&F Bovespa, owned by Mosaic. This contract is part of the process of acquiring 100% of the equity capital of Bunge Participações e Investimentos S.A. (BPI), publicly announced by Vale on January 27, 2010.

The exercise of the option is subject to certain conditions, among which, the effective acquisition of the fertilizer assets of Bunge Group in Brazil. The option gives our subsidiary the right to acquire a direct and indirect stake of 20.27% in the equity capital of Fosfertil, comprised of 27.27% of common shares and 16.65% of preferred shares.

The strike price of the option contract is US$ 1,029,811,129.77, which was based on the same price per share, US$ 12.0185, agreed with BPI, Fertilizantes Heringer S.A. (Heringer), Fertilizantes do Paraná Ltda. (Fertipar) and Yara Brasil Fertilizantes S.A. (Yara) for the acquisition of their direct and indirect stakes in Fosfertil.

After concluding the acquisition of the direct and indirect stakes of BPI, Heringer, Fertipar, Yara and Mosaic, Vale will hold 78.90% of the equity capital of Fosfertil, corresponding to 99.81% of common shares and 68.24% of preferred shares. The total price to be paid for the acquisition of 78.90% of the equity capital of Fosfertil is US$ 4,006,876,600.55.

Pursuant to Brazilian corporate law and capital markets regulations and once concluded the acquisition of the above mentioned stakes, Vale will launch a mandatory offer to buy the remaining 0.19% of the common shares held by the minority shareholders of Fosfertil for the same price per share agreed with BPI, Heringer, Fertipar, Yara and Mosaic.

In addition to the acquisition of Fosfertil shares Vale has also agreed to acquire from Mosaic a processing plant located in Cubatão, state of São Paulo, Brazil, for US$ 50 million. The plant has a nominal capacity to produce 300,000 metric tons per year of single superphosphate (SSP), which is the phosphates nutrient mostly consumed in Brazil.

Maritime Transport - Transpetro Fleet

Transpetro fleet has the capacity of transporting 2.9 million tons of products and is composed by 52 vessels.
. 9 relief ships, to offload petroleum production offshore
. 10 ships to transport petroleum and dark products (fuel oil and bunker)
. 7 ships for dark and clear products (diesel oil and gasoline)
. 18 ships for clear products
. 6 gas ships, to transport liquefied petroleum gas (LPG)
. 1 floating storage and offloading unit
. 1 maritime support vessel

The coordination of oil tankers is made by the Maritime Transportation Managements (Getrams):

Getram 1 – It is responsible for operation of ships which operate in the production flow of Campos Basin and in the transfer of oil fuel in the cabotage between the Brazilian coast terminals. They also act in the export and import of fuel oil, mainly for Argentina and Caribbean. Ships: Bicas - Brotas - Pedreiras - Piquete - Piraí - Pirajuí - Potengi.

Getram 2 – It coordinates the operation of gas tankers. These ships are used in the transportation of LPG produced in Brazil or imported from Argentina. The Management also responds for a FSO in the Coral and Estrela Field and an AHTS type tugboat. Ships: Avaré - Grajaú - Guaporé - Guará - Guarujá - Gurupá - Gurupi - Tangará.

Getram 3 – It is coordinating the transportation ships of dark products and byproducts (fuel oil in general and maritime fuel oil) and those which are operating in the flow of crude oil produced in several parts of the Country. Ships: Candiota - Cantagalo - Carangola - Caravelas - Carioca - Lobato - Londrina - Lorena BR - Rebouças - Rodeio.

Getram 4 – It responds for ships that transport Urucu (State of Amazonas) production flow and those which transfer oil byproducts in the cabotagem between national refineries and large consumption centers in the Brazilian coast. Its ships also act in the import of automotive diesel oil from Europe and Latin America, in the export of ethanol to Venezuela and gasoline to Africa, and in the supply of diesel oil of supporting vessels in Campos Basin. Ships: Dilya - Itabuna - Itajubá - Itaperuna - Lages - Lambari - Lavras - Maísa - Nilza.

Getram 5 – It coordinates dynamic positioning ships and Fronape International Company (FIC), dedicated to Campos Basin production flow, mainly for the maritime terminals of São Sebastião, São Francisco do Sul and Tramandaí. Ships: Ataulfo Alves - Cartola - Navion Bergen - Navion Gothenburg - Navion Stavanger - Nordic Brasília - Nordic Rio - Nordic Spirit - Stena Spirit.

Getram 6 – The Maritime Transportation Management 6 is responsible for light oil byproducts ships which make the transfer in the cabotage between maritime terminals connected to national refineries and Brazilian coast ports not directly served by refineries. In addition to that, they also act in the import of diesel oil and export of ethanol and gasoline: Diva - Itaituba - Itamonte - Lindóia Br - Livramento - Marta - Nara - Neusa - Norma.

Maritime Transport - Fleet Program Petrobras

Maritime Transport - Fleet Program

The largest ship owner in Latin America, Transpetro is preparing to sail with a renewed fleet. The Fleet Modernization and Expansion Program (Promef), which is part of the Growth Acceleration Program (PAC) of the Federal Government, represents a milestone for the large vessels industry in Brazil. The 49 new tankers will meet both the need to ensure greater autonomy and control in the transport of the Petrobras' production and serve as a foundation for the revival of the Brazilian shipbuilding industry.

Just in the first stage, the ship program will generate more than 20 thousand direct jobs. Moreover, the Brazilian naval industry, stagnant since the 1980s, is now being reactivated. In this trail, other sectors of the industry have been stimulated, among these the naval-parts industry, and the steel and metallurgy industries that will provide the inputs for the construction of the ordered ships.

The 26 new ships set out in the first stage shall have capacity to transport approximately 2.7 million deadweight tons (DWT). Ten Suezmax ships, five Aframax ships, four Panamax ships, four products ships and three gas tankers (LPG - Liquefied Petroleum Gas) will be built.

With the fleet renewed, Transpetro can better respond to the challenges imposed by the increased domestic production of fuels and self-sufficiency in petroleum, and the expansion of Petrobras in Brazil and abroad.

Promef 1

In the first phase of the Fleet Modernization and Expansion Program, the following ships are under construction. The winning companies of the bidding process were:

• Atlântico Sul Shipyard (PE): 10 Suezmax ships
Lump Sum Price: US$ 1.2 billion

• Atlântico Sul Shipyard (PE): 5 Aframax ships
Lump Sum Price: US$ 693 millions

• Ilha Shipyard S.A. - Eisa (RJ): 4 Panamax ships
Lump Sum Price: US$ 468 millions

• Mauá Shipyard (RJ): 4 product ships
Lump Sum Price: US$ 277 millions

• Three Gas Tankers of 7,000 M3 in bidding process.


Types of ships

• Promef 2
  
  The second stage of the Fleet Modernization and Expansion Program (Promef) was launched on May 26, 2008 in Niterói, and was attended by the President Luiz Inácio Lula da Silva.
  
  In this new stage, 23 new ships foreseen for the second stage are being auctioned, with expectation to reach a total of 1.3 million deadweight tons (DWT), the 23 ships will require about 250 thousand tons of steel during the construction. The second stage was divided into three bids, as follows:
  
  A) 15 oil tankers, divided into the following lots:
  
  Lot 1 - 4 Suezmax DP (Dynamic Position);
  Lot 2 - 3 Aframax DP (Dynamic Position)
  Lot 3 - 3 for Clear Products 45.000 tons;
  Lot 4 - 3 for Clear Products 30.000 tons and 2 for Dark Products 30.000 tons.
  
  The international bidding notice was issued on July 8, 2008, in the Headquarters of Transpetro.
  
  B) 3 bunker (ship fuel) ships in one single lot.
  
  The international bidding notice was issued on July 08, 2008, in the Headquarters of Transpetro.
  
  C) 8 LPG tankers (3 ships of Promef 1 and 5 ships of Promef 2).
  
  2 Semi-pressurized Gas Tankers 12.000 m3;
  4 Pressurized Gas Tankers 7.000 m3 and 2 Pressurized Gas Tankers 4.000 m3.
  
  The international bidding notice was published on August 27, 2009, in the Headquarters of Transpetro.
  
  The Promef (1 and 2) is one of the most important projects of the Growth Acceleration Program - PAC, and will create approximately 40 mil jobs in the country by 2015.
  
  The premises of the program are that the ships be built in Brazil, with guarantee of a nationalization rate of 65% in Promef I and 70% in Promef all, and that the shipyards become internationally competitive.
  
  (Source: Transpetro)
  
  
  
  

Petrobras unit selects Fluor for US refinery study

Feb 2, 2010

HOUSTON, Feb. 2 -- Pasadena Refining System Inc. (PRSI), a subsidiary of Petroleo Brasileiro SA (Petrobras), has selected Fluor to provide front-end engineering study services for a prospective US refinery project.

Fluor will provide engineering, estimating, and project management services for the conceptual engineering phase of the prospective project that would enhance the performance of the 100,000-b/d Pasadena, Tex., refinery.

The engineering study is currently underway in Fluor’s Sugar Land, Tex., office and will be completed later this year.

Sembcorp Marine to build new shipyard in Brazil

February 8th, 2010

SINGAPORE (Dow Jones) – Rig builder Sembcorp Marine Ltd. said that its wholly-owned unit, Jurong Shipyard, will build a new shipyard in Brazil to take advantage of the strong offshore oil and gas exploration and production market in that country.

Sembcorp, in a statement, said the unit has acquired 825,000 square meters of land in the Aracruz municipality near the Espirito Santo Basin, one of Brazil's recently discovered pre-salt oil basins. The shipyard will be capable of various works like drillship construction, building of semi-submersible rigs, drilling rig repairs, ship repairs and modification.

Sembcorp didn't say how much the new shipyard will cost or when construction work will be completed. It said, however, that the construction won't have material impact on earnings and net tangible assets per share for the current financial year.

Brazil's huge capital expenditure plans to develop its fields are boosting hopes among Singaporean rig builders for substantial orders. State-run Petroleo Brasileiro (PBR), or Petrobras, has also announced massive exploration plans at its Santos Basin and is expected to place rig orders worth US$17 billion over the next five years.

Sembcorp's Brazil investment follows two separate investment plans announced in November.

Sembcorp is currently building a new offshore and marine facility in Singapore and will spend about S$750 million on the first phase of the construction, which is expected to take four years to complete from December 2009

Construction begins on Brazil’s largest oil refinery

Petrobras has commenced construction on Brazil’s largest oil refinery, located in Bacabeira, 60 km from the site of a new port terminal to be constructed at Sao Luis, Maranhao, which will be linked to the refinery via a new pipeline.

The construction will be carried out in two phases. Phase one construction will be completed in 2013 when the refinery reaches production capacity of 300,000 bbl/d of oil.

The refinery will have a production capacity of 600,000 bbl/d of oil when it reaches full operation in 2015.