GAS: Petrobras inaugurates Gasene gas pipeline

(Source: Investnews; Sao Paulo)SAO PAULO, 3/29/10 - In a ceremony attended by President Luiz Inacio Lula da Silva, Brazilian mixed-capital oil giant Petrobras inaugurated on Friday the Gasoduto da Integracao Sudeste Nordeste (Gasene) - the longest gas pipeline ever built in Brazil. Gasene is Brazil's main natural gas structure, as between 2003 and 2010 it has increased the country's pipeline network to 9,219 km from 5,451 km. Gasene is 1,387 km long, with 28 inches -thick pipes and a transport capacity of 20 million m[sup 3]/day of natural gas. It links Rio de Janeiro and Bahia states and integrates the Southeast and Northeast's natural gas transport networks. Initially Gasene will transport 10 million m[sup 3]/day, to be gradually raised through the construction of new compression stations according to market growth.
In a statement released Friday Petrobras affirmed that the pipeline has broken a barrier between the Southeast and the Northeast regions, as the former has the largest production fields and biggest consumer market, and the latter's gas production is insufficient to boost market growth.

The enterprise received an investment of R$7.2 billion and created 47,000 direct and indirect Jobs.

Petrobras investment Plan 2011-2014

SAO PAULO -(Dow Jones)- Brazilian state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR) revised downward its investment plan for the 2011-2014 period, the company said late Monday in a statement.

Petrobras now expects to invest up to 250 billion Brazilian reals ($138.8 billion) in its operations through 2014, down from BRL265 billion announced earlier this month. The investment plan was approved by the company's board.

The company didn't unveil the reason for the downward revision.

For the post-2014 period, Petrobras said it approved a set of projects for a total investment of about BRL462 billion. Part of the investments represent the development of projects that already are included in the 2010-2014 portfolio but have maturity time longer than the five-year business plan.

The company, which based the figure on a preliminary view, said this is in line with its vision for 2020.

About 61.5% of Petrobras' 2011-2014 investment budget will be focused on exploration and production.

"In the Exploration and Production (E&P) area, the investments aim to increase oil and natural gas production, taking advantage of the success that was achieved in the post- and pre-salt and also the exploratory activities. The E&P project portfolio includes the construction of production platforms and drilling rigs, support vessels, and investments in infrastructure for transportation," Petrobras said.

Fluor unit wins 2 refinery contracts in Mexico

IRVING, Texas. — A joint venture run by Fluor Corp. won two contracts to build two refining facilities for Mexico's national oil company.

Fluor, based in Irving, Texas, will book $311 million from the deals during the first quarter.

The total contract for ICA Fluor, a joint venture between Mexico's Empresas ICA S.A.B. de C.V. and Fluor, is worth $622 million.

Petroleos Mexicanos, or Pemex, the state oil monopoly, is paying ICA Fluor for engineering, installation, testing and startup of two plants to produce low-sulfur gasoline at existing refineries in Minatitlan, Veracruz, and Salina Cruz, Oaxaca.

Both projects include 25,000 barrel-per-day catalytic distillation trains, the associated amine regeneration units and all ancillary facilities. The work is scheduled to be completed by mid-2013.

The joint venture got a similar contract from Pemex for two other refineries in September.

Fluor shares rose 92 cents, or 2 percent, to $46.77. Empresas shares gave up 2 cents to $10.13.

Brazil announces phase two of the Growth Acceleration Program

29/03/2010 16:55 - Portal Brasil

President Luiz Inácio Lula da Silva announces US$ 526 billion in public and private investments over 2011-2014 BRASILIA (March 29, 2010) - Brazil today launched phase two of the Growth Acceleration Program (PAC 2), with an estimated investment amount of US$ 526 billion (R$ 958.9 billion) for the period from 2011 to 2014.

For years after 2014, the estimated investment is US$ 346,4 billion (R$ 631.6 billion). The two periods combined reach an amount of US$ 872,3 billion (R$ 1.59 trillion). The second phase of PAC incorporates new projects with investments for the period 2011-2014 and also post-2014, and includes works started during the first phase with scheduled activities planned to happen after 2010.

PAC is a strategic investment program, which combines measures of management and works. In its first edition, released in 2007, the program called for investments of US$ 349 billion (R$ 638 billion), and 63.3% of this total have been used.

Just like in the first phase of the program, the plan is focused on investments in the areas of Logistics, Energy and Social-Urban, unfolded into six major fronts: Better City (urban infrastructure), Citizen Community (safety and social inclusion), My House, My Life (housing), Water and Light for All (sanitation and access to electric energy for remote locations), Energy (renewable energy, oil and gas) and Transports (highways, railways, airports, among others).
I consider PAC Phase 2 as a shelf of projects, so the one who comes to rule this country will not have to start from scratch, there is no time to lose,” said President Luiz Inácio Lula da Silva during the announcement of the program.

Each of these groups has an estimate of resources. Groups Transports and Energy have a preliminary selection of projects. The other groups, just like PAC, will have projects selected in April/June, after dialogue with States and Municipalities.

AXES 2011-2014 POST-2014 TOTAL
US$ (R$ billion)
PAC BETTER CITY 3 1,3 (57.1) - 31,3 (57.1)
PAC CITIZEN COMMUNITY 12,6 (23.0) - 1 2,6 (23.0)
PAC HOUSING 152,5 (278.2) - 152,5 (278.2)
PAC WATER AND LIGHT 4 ALL 16,6 (30.6) - 16,6 (30.6)
PAC TRANSPORTS 57,3 (104.5) 2,4 (4.5) 59,7 (109.0)
PAC ENERGY 255,3 (465.5) 343,9 (627.1) 599,2 (1,092.6)
TOTAL 526 (958.9) 346,4 (631.6) 872,3 (1,590.5)

PAC 2 – AXES, AREAS, TARGETS AND ESTIMATED INVESTMENTS

PAC – Better City
Areas – Sanitation, Prevention in Risky Areas, Urban Mobility and Paving.
Target – Tackle the major challenges of large urban areas, thus providing better quality of life.
Estimated investment – US$ 31,3 billion (R$ 57.1 billion) (2011-2014).

PAC – Citizen Community
Areas – Units for Immediate Attention (UPA) and Basic Health Units, Day-care and Pre-school centers, Sports courts at schools, PAC Squares, and Community Police Stations.
Target – Presence of the State in poorer districts – increasing coverage of services.
Estimated investment – US$ 12,6 billion (R$ 23 billion) (2011-2014).

PAC – My House, My Life
Areas – My House, My Life, SBPE Financing (Brazilian Savings and Loans System), Urbanization of Precarious Settlements.
Target – Reduction of housing deficit, stimulating the civil construction sector and generating job and income.
Estimated investment – US$ 152,5 billion (R$ 278.2 billion) (2011-2014)

PAC – Water and Light for All
Areas – Light for All, Water Supply in Urban Areas, and Water Resources.
Target – General access to water and electric energy.
Estimated investment – US$ 16,6 billion (R$ 30.6 billion) (2011-2014).

PAC - Transports
Areas – Highways, Railways, Ports, Waterways, Airports, Equipment for local roads.
Target – Consolidate and expand logistics network, interconnecting several modes, thus ensuring quality and safety.
Estimated investment – US$ 57,3 billion (R$ 104.5 billion) (2011-2014) and US$ 2,47 billion (R$ 4.5 billion) (post-2014).

PAC - Energy
Areas – Generation and Transmission of Electric Energy, Oil and Natural Gas, Shipbuilding, Renewable Fuels, Energy Efficiency, Mineral Research.
Target – Secure reliable supply through an energy supply mix based on renewable, clean sources; Develop discoveries in Pre-Salt, expanding its production.

Estimated investment – US$ 255,3 billion (R$ 465.5 billion) (2011-2014) and US$ 343,9 billion (R$ 627.1 billion) (post-2014).

Gasene to increase gas supply in the Northeast

With the presence of the president of the Republic, Luiz Inácio Lula da Silva, Petrobras will hold the inauguration ceremony for the Southeast Northeast Integration Gas Pipeline (Gasene), the biggest pipeline in length built in Brazil in the past ten years and the main project to expand the natural gas transportation network in the country between 2003 and 2010, a period during which the Brazilian gas transport pipeline network grew from 5451 kilometers to 9219 kilometers.The event will take place Friday (03/26).

A Growth Acceleration Program (GAP) project, the Gasene measures 28 inches in diameter and can transport 20 million cubic meters of natural gas per day. In a circuit that connects Rio de Janeiro to Bahia, the pipeline has the strategic role of integrating the natural gas transport networks in Southeastern and Northeastern Brazil, affording the Brazilian gas pipeline network a new configuration. When it goes on stream, the Gasene will have the initial capacity to carry 10 million cubic meters/day. As the market grows, this will be increased by means of compressor stations.

With the integration pipeline, the country breaks a gas boundary: on one side, the Southeast, where the main producing fields and the largest consumer market are located; on the other, the Northeast, which produces natural gas, but in insufficient amounts to allow market growth. Now, natural gas produced in the Southeast (Campos, Santos, and Espírito Santo basins), imported from Bolivia or regasified at the Guanabara Bay liquefied natural gas (LNG) terminal can reach the Northeastern states.

This integration allows for the supply of natural gas to the Northeast to be increased substantially, it provides more supply reliability, and increases operating flexibility to meet the needs of the region's thermal and non thermal markets. The 20 million cubic meters per day equal twice the average consumption in the Northeastern region in 2009, which topped-out at 9.8 million cubic meters per day (21.5% of domestic natural gas consumption). In other words, with the Gasene, Northeastern Brazil now has more natural gas available to it and, thus, more power to support its economic development.

With investments in the order of R$ 7.2 billion and generating 47,000 direct and indirect jobs, the integration pipeline construction work was divided into three sections: Cacimbas-Vitória (130 km), Cabiúnas-Vitória (303 km), and Cacimbas-Catu (954 km). The first two are ready and in commercial operation. Ranging 954 kilometers, the third and largest section, the Cacimbas-Catu (Gascac), was completed this March.

Central to integrate the two regions, Cacimbas-Catu interconnects the Cacimbas Gas Treatment Station, in Linhares (state of Espírito Santo), to the Catu Gas Distribution Station in Pojuca (state of Bahia), the site of Hub 1 (place where different pipelines meet). In Pojuca, the Gasene interconnects the Catu-Pilar gas pipeline. It is over this infrastructure, which is now integrated, that the natural gas is transported to the states of Sergipe, Alagoas, Pernambuco, Paraíba, Rio Grande do Norte, and Ceará.

Along the route, the Gasene has eight delivery points (Itabuna, Eunápolis and Mucuri, Bahia; Cachoeiro de Itapemirim, Anchieta, Viana and Vitoria, in Espírito Santo; and Campos dos Goytacazes, in Rio de Janeiro.), in addition to three compressor stations (Piúma and Aracruz, in Espírito Santo, and Prado, in Bahia).

The delivery points allow the natural gas to reach new markets and drive product use interiorization. An example of this is the service provided to the Itabuna market. A trade agreement signed on March 1 between Petrobras and Bahiagás - a natural gas distributor in Bahia - allows the delivery of natural gas in southern Bahia to be anticipated. The first three customers of the gas transported by Gasene in Southern Bahia are the Trifil (textiles) and Nestlé (food) industrial plants, and the Posto Universal (CNG) service station, all in Itabuna. On the same day, the three customers signed an agreement with Bahiagás and with the Companhia de Distribuição de Gás Natural (CDGN).

The state distributor is in charge of providing natural gas, while CDGN, by compressing and transporting the fuel, of taking it to the final consumers by truck. CDGN will deliver the gas until the fourth quarter of 2010, when Bahiagás will have completed the construction of the distribution branch that will receive the gas at the Gasene point of delivery, in Itabuna, taking it to the final consumers.

The Gascac construction work got underway in March 2008 and was completed in 24 months. The pipeline route crosses 51 municipalities: five in Espírito Santo, and 46 in Bahia. The work was divided into six work fronts that operated simultaneously to meet the planned schedule. At the peak of the work, the third and largest section of the Gasene generated 9,500 jobs.

In the 954 km of the Gascac, there were 151 river crossings, six of which made using directional holes, and 88 special crossing area projects, including roads and railways. Part of the route shares the Orsub track, Petrobras' pipeline that connects Salvador to Itabuna and transports oil derivatives (gasoline, diesel, and LPG).

To complete this long section and overcome construction challenges, Petrobras adopted special technologies in the work. In rocky terrain areas, located between the cities of Ipiaú and Itabuna, for example, it blasted rocks using explosives in a controlled, localized fashion. This approach replaces the traditional ditch opening process.

Another novelty was the use of the Pipe Sak, an alternative method to concreting pipelines, which uses woven polypropylene bags filled with gravel and belted to the pipeline to prevent buoyancy in floodplains.

Another technology that was also used for the first time in Brazil was Vacuum Lift, a device that lifts pipelines by means of vacuum suction and eliminates the use of wire ropes and straps. Used in the section between the cities of Valencia and Catu, Vacuum Lift reduced the 28-inch pipe lifting time from 10 minutes to 25 seconds.

Meet Brazil’s new petrochemical sector

Braskem acquires Quattor and Sunoco Chemicals and becomes the number-one producer of thermoplastic resins in the Americas

Braskem’s acquisition of Quattor Petroquímica in Brazil and Sunoco Chemicals in the United States has brought the company to a new level of competitiveness and size. It has gone from third to first place among thermoplastic producers in the Americas. And in the global rankings for petrochemicals, it has moved up from twelfth to eighth place. “The acquisition of Quattor is part of Braskem’s strategic drive to form a broad alliance with Petrobras to make the Brazilian petrochemical industry one of the strongest in the world,” says Braskem Entrepreneurial Leader (CEO) Bernardo Gradin. “As for Sunoco, it represents our first opportunity to operate outside Brazil.”

After nearly seven months of negotiations, the acquisition of Quattor was finalized in January through an agreement that, among other things, will change Braskem’s corporate structure. Odebrecht and Petrobras will share the company’s strategic decisions, and Odebrecht will have a 50.1% share of its voting stock. The agreement also involves the creation of a holding company, BRK Investimentos Petroquímicos, which will own all of Braskem’s common stock. Carried out in stages, the merger with Quattor will be submitted to the Council for Economic Defense (CADE), Brazil’s antitrust agency, for approval.

Engineer Luiz de Mendonça has been assigned to head Quattor. He has been a Braskem member since 2002, the year the company was founded, and his last position with the company was Vice President responsible for the Polymers Unit. Mendonça now faces the challenge of leading the consolidation of Quattor’s business culture and practices with Braskem’s philosophical principles. The first step was holding a number of open meetings with teams at the industrial plants in Duque de Caxias, Rio de Janeiro, the ABC region of São Paulo, and Camaçari, Bahia, as well as the São Paulo office, to discuss the merger of Quattor and Braskem and the role that Quattor’s teams will play in Braskem’s growth, while introducing them to Braskem’s strategic vision and culture.

To analyze Quattor’s processes and become fully familiarized with its operations as quickly as possible, work fronts have been organized to identify synergies and best practices that can and should be shared. Braskem members will work at Quattor and vice versa. Some areas will also be consolidated to better harness the potential of both companies.

Quattor has units and investments undergoing expansion that are ready to go online, which will add 200,000 tonnes per year of ethylene to its production capacity, possibly as early as May of this year. Others will add 200,000 tonnes per year of polyethylene. Rio Polímeros (RioPol) is expected to go onstream at full capacity in 2010, when Petrobras’s Plangás begins operations.

According to Otávio Carvalho, a director of the MaxiQuim consulting firm, Braskem has chosen the right way to take on the competition and expand its market. It has decided to bolster the industry in Brazil and internationalize its operations by acquiring petrochemical companies, as well as carrying out projects from scratch by prospecting for raw materials and building factories. Braskem is already studying several such initiatives, known as greenfield projects, in Mexico, Peru, Venezuela and Bolivia.

The first steps have already been taken in Mexico. Braskem and Idesa, a Mexican petrochemical firm, are partners in a joint venture controlled by Braskem (65%). The aim of this partnership is to develop an integrated petrochemical project to produce ethylene the polyethylene in that country using natural gas feedstock. Capable of producing up to a million tonnes of polyethylene per year, these new plants will begin operations by 2015.

Otávio Carvalho observes that one of the main features of the petrochemical industry is its global, competitive market. Now that the nation’s economy is booming and consumption is high, doing business in Brazil has become attractive to producers from several countries. “China, India and Middle Eastern countries, for example, are moving in our direction,” he says, adding: “Although Braskem is the only producer in Brazil, it is not the only seller. Global distributors are active in this country, and international companies with plants in Argentina, Colombia and the US have established commercial bases here and are vying for the nearly 11,000 clients in this country’s plastics industry.”

A long-term partner in projects at the Triunfo Petrochemical Complex in Rio Grande do Sul and the Paulínia Unit in São Paulo State, Petrobras has chosen Braskem to increase its stake in the petrochemical industry, “due to its expertise, and management, technical and commercial capacity,” according to Paulo Roberto Costa, the state-owned oil giant’s Downstream Director. “These characteristics have given us the peace of mind to play a more active role and increase our stake in its corporate structure.”

Carlos Fadigas, Braskem’s Vice President for Finance and Investor Relations, observes: “The consolidation of the oil and petrochemical supply chains adds value and competitive advantages to every link in those chains: extraction, refining, the production of raw materials for the petrochemical industry and their conversion into resins.” Another important aspect of this partnership with Petrobras is the fact that the oil company shares a long-term view of the business with Odebrecht. “The petrochemical industry is a capital-intensive sector that requires a long-term outlook. One or two years of low tide won’t daunt partners who have been in this market for decades, are familiar with the ups and downs and know how to plan for growth,” says Fadigas.

The plastics industry’s reaction to the acquisition of Quattor was one of “hope and confidence,” according to Alfredo Schmitt, Chairman of the Brazilian Association for the Plastic Packaging Industry (ABIEF). “As business leaders, we understand the world trend in the petrochemical industry, which is verticalizing and consolidating to compete on the global playing field, and we hope the resulting gains in scale will be felt throughout the plastics supply chain.”

Keppel Shipyard Secures Conversion Contracts Worth $160 Million

Thursday, March 25th, 2010

Keppel Shipyard Limited (Keppel Shipyard) has secured two contracts totaling $160 million to convert a Floating Production Storage and Offloading (FPSO) vessel for Single Buoy Moorings Inc (SBM), and a livestock carrier for an affiliated company of Hijazi & Ghosheh Co.

Mr Nelson Yeo, Managing Director of Keppel Shipyard, said, "We are delighted to be awarded our 15th project from SBM, on the back of the recent successful deliveries of P-57, the BP Skarv Turret and FPSO Capixaba. Hijazi & Ghosheh Co, a major livestock carrier owner and operator has also returned to us to convert a second livestock carrier.

“These contracts demonstrate the strong partnerships we have established with our valued customers over the years.”

Keppel Shipyard’s latest project from SBM is for the conversion of the Very Large Crude Carrier (VLCC), M/T Bauhinia, into an FPSO facility. The facility is being developed for the Block I oil field, Aseng, located offshore of Equatorial Guinea.

Work on the FPSO is expected to commence in the second quarter of 2010 and completed in the third quarter of 2011. The scope includes refurbishment and life extension works, accommodation block extensions, the fabrication and installation of a flare tower, an internal turret and topside module supports, as well as the installation and integration of topside modules.

Mr Tony Mace, Chief Executive Officer of SBM Offshore said, “Having worked with Keppel Shipyard since 2001, we remain impressed with their ability to deliver projects safely and to our satisfaction. This is true of the three recently delivered projects, and I am confident that this FPSO will match the same high standards.”

Additionally, Keppel Shipyard secured a second contract to convert a vehicle carrier, Merlion Ace, into a livestock carrier for Merlion Ace Compania Naviera S.A, an affiliate of Hijazi & Ghosheh Co., a world leading livestock carrier owner and operator. The work scope includes design engineering, procurement of major equipment, modification of ship structural, piping and electrical systems.

To be renamed Ghena, the vessel is targeted for completion in the third quarter of 2010, and will ply the route between Australia and the Middle East.

Mr Issam Hijazi, President of Hijazi & Ghosheh Group, said, “We are glad to be working with Keppel Shipyard again following the conversion of the Maysora livestock carrier in 2001. We had a rewarding experience with the team who has lived up to the reliability and exceptional service that Keppel Shipyard is well-regarded for. We look forward to another outstanding job on the Ghena livestock carrier, and more projects together.”

SBM deliveries
Keppel Shipyard has completed 13 projects for SBM since 2001. It most recently delivered the P-57 FPSO, FPSO Capixaba and an internal turret for the Skarv FPSO project.

FPSO Capixaba was delivered on 10 February 2010, nine days ahead of schedule. The vessel was modified and upgraded for operation in the Cachalote field in offshore Brazil. FPSO P-57, which was delivered in the same month underwent hull and marine conversion in Singapore and will have its remaining work of topsides installation and integration completed at Keppel Offshore & Marine’s BrasFELS yard in Brazil.

On 23 February 2010, Keppel Shipyard successfully loaded-out the final two components of the Skarv internal turret, consisting of the manifold deck and gantry structure. The lower turret and upper turret structures were delivered and loaded out in at end-2009. They will be integrated into the FPSO currently being built in Korea. The internal turret, the largest in the world in terms of its rated mooring loads is being supplied by SBM to their client for its Skarv FPSO unit, which will operate offshore Norway once completed.

All three projects were completed without any lost-time incident (LTI).

Keppel Shipyard is presently converting another major project, FPSO Okha, for SBM at its Tuas yard.

Keppel Shipyard is a wholly owned subsidiary of Keppel Corporation, through Keppel O&M, a leader in offshore rigs, ship repair and conversion and specialised shipbuilding. Keppel O&M’s near market, near customer strategy is bolstered by a global network of 20 yards and offices in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry.

The two contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.

Tender date set for Belo Monte Dam

19 Mar 2010


The tender deadline for the concession contract for the construction and operation of Brazil's Belo Monte dam has been confirmed as 20 April 2010 by the Brazilian Mines and Energy Ministry.

The 30 year concession carries the proviso that the dam must supply electricity in 2015 according to a Ministry spokesperson. Construction of the 1.1 GW hydro-electric dam is expected to cost US$ 11.3 billion, a figure that includes various environmental measures to limit the dam's impact on the Xingu River area in the Amazon rainforest.

As part of the dam bidding conditions, the Ministry is expected to set a BRL 83 (US$ 46.2) per MWh ceiling price, up from BRL 68 (US$ 37.8) per MWh in recognition of the additional environmental costs.

Thus far, just two consortia have expressed interest in the project. The Camargo Correa and Odebrecht joint venture announced last month now faces a rival bid from a consortium made up of Vale SA, Andrade Gutierrez Participacoes SA, Neoenergia Investimentos SA and Votorantim Energia.

Jurong Shipyard to convert Roncador floater

SINGAPORE -- Jurong Shipyard has won a S$130 million ($93 million) order from Petrobras Netherlands for pre-conversion of a VLCC to the FPSO P62.

The scope of work involves renewal of the hull structure steel; fabrication and installation of new steel work; blasting and painting works; renovation, fabrication, and installation of piping; and refurbishment of accommodation. The vessel is due to be completed during 2Q 2011.

The FPSO P62 is part of the 4th Phase of the Roncador field development plan. It will be installed in around 1,600 m (5,249 ft) of water, and will be capable of processing more than 180,000 b/d of oil, injecting over 250,000 b/d of water, and producing 6 MMcm of gas, with an oil storage capacity of 1.6 MMbbl. It is designed to remain on station at the field for up to 25 years without the need for drydocking.

3/18/2010

Petrobras to invest $400 million in Colombia

LOS ANGELES, Mar. 19 – The Colombian subsidiary of Brazil’s Petroleo Brazileiro SA plans to invest to $400 million in the South American country during the next 3 years, a senior company official said.

“All our business plans for the 2010-2014 period have yet to be announced ... but as far as the business plans for the 2009-2013 period, our investment budget amounts to roughly $400 million," said Abilio Paulo Pinheiro Ramons, head of Petrobras Colombia Ltd.

Even though Petrobras restricted overseas investments to ensure greater cash flow for domestic projects, Pinheiro Ramons told Colombian business daily Portafolio that the firm’s 4-year exploration and production plan for Colombia would proceed as planned.

Earlier this month, Petrobras Colombia Ltd. discovered oil on the Balay exploration block in Colombia’s Llanos basin. Petrobras Colombia Ltd holds a 45% stake in the Balay exploration project, while Cepcolsa holds 30%, Sorgenia E&P Colombia BV 10%, and Petroamerica Oil Corp 15%.

Skanska gets refinery order in Brazil

Dublin, Mar 11, 2010 (M2 PRESSWIRE via COMTEX) --
11 March 2010 - Swedish company Skanska AB (STO: SKA B) said today that it has won a contract, worth some USD350m regarding the construction of a refinery for Brazilian oil major Petrobras.

The latest deal, part of a project with a total value of USD623m, is for the first processing unit of a crude oil refinery at Petrobras' petrochemical complex Comperj, covering an area of 45 sq km, in the Rio de Janeiro state. The unit will have a capacity to process about 150,000 barrels of oil (boe) per day.

Skanska will head the consortium responsible for design, detailed engineering and construction of the facilities, including electromechanical installations. The contract also includes the procurement of material and equipment, as well as assistance related to start-up and operation.

Work, which will start immediately, is expected to be completed within 36 months and about 3,000 workers will be involved at its peak, Skanska said.

Skanska will book the latest order in the first quarter of 2010.

Braskem and Idesa formalize agreement with Pemex

Posted March 16, 2010
MEXICO CITY (March 16, 12:01 a.m. ET) -- Brazilian petrochemicals giant Braskem SA and Mexico’s Grupo Idesa SA de CV have formalized an agreement with Pemex Gas y Petroquímica Básica to build a $2.5 billion petrochemical complex in Coatzacoalcos, Mexico, to include an ethylene cracker and three polymerization plants.

In November, the two companies signed a memorandum of understanding with Pemex Gas y Petroquímica Básica, a subsidiary of state oil company Petróleos Mexicanos (Pemex), for the cracker’s feedstock. The cracker alone will cost $1 billion.

But it was not until last month that the three parties sealed the deal in the presence of Presidents Felipe Calderón Hinojosa and Luiz Ignacio Lula da Silva, of Mexico and Brazil, respectively, by which time a decision to add the polymerization plants had been reached.

The official signing ceremony took place at the conclusion of a summit of Latin American and Caribbean leaders, held close to Cancún, southeastern Mexico, in late February.

According to Idesa, of Mexico City, Braskem’s participation in the joint venture is 65 percent while Idesa’s is 35 percent.

“The participation of Pemex as a minority partner in the project is still being studied,” Idesa said on its Web site.

The plan is to produce 2.2 billion pounds of ethylene and polyethylene per year, starting in 2015, according to Idesa.

It is the largest single Brazilian investment ever made in Mexico and the biggest investment in Mexico’s petrochemicals sector in the last 20 years, it added.

Known as Ethylene XXI, the project “represents the reactivation of the petrochemicals industry in Mexico,” according to Idesa.

“One of the most relevant positive effects [of the complex] is that Mexico will be able to substitute the importation of polyethylene worth approximately $2 billion a year.

“It will have a strong impact on Mexico’s trade balance, in addition to creating 6,800 jobs during the complex’s construction and about another 800 permanent jobs at the complex, once work is finished.”

In a statement last year, Pemex said it will supply Braskem and Idesa with 66,000 barrels of ethane per day for the cracker, which Braskem and Idesa will build and operate, over 20 years.

Headquartered in São Paulo, Braskem is Latin America’s largest petrochemical company.

In a separate deal, Pemex agreed to sell Braskem 375,000 metric tons of naptha, a raw material used in the production of basic petrochemicals that are then converted into thermoplastic resins, Idesa said.

Petrobras' oil new discovery

HOUSTON, Mar. 16 -- Petroleo Brasileiro SA (Petrobras) reported the discovery of light oil below salt 28 km off the Brazilian state of Sergipe.

It said the 3-PRM-12-SES well, in the northern part of the Piranema concession area in the Sergipe basin, indicated presence of 44º gravity oil in good-quality sandstone.

The well was drilled to 2,693 m in 800 m of water.

Petrobras plans a second well and is considering a development scheme tied to the production platform on nearby Piranema oil field.

It estimated economically recoverable oil in the discovery at 15 million bbl.

Petrobras' oil new discovery

HOUSTON, Mar. 16 -- Petroleo Brasileiro SA (Petrobras) reported the discovery of light oil below salt 28 km off the Brazilian state of Sergipe.

It said the 3-PRM-12-SES well, in the northern part of the Piranema concession area in the Sergipe basin, indicated presence of 44º gravity oil in good-quality sandstone.

The well was drilled to 2,693 m in 800 m of water.

Petrobras plans a second well and is considering a development scheme tied to the production platform on nearby Piranema oil field.

It estimated economically recoverable oil in the discovery at 15 million bbl.

Petrobras inaugurates modernization work at the Presidente Getúlio Vargas Refinery

Source: Petrobras

Date: 03/12/2010 17:28

The president of the Republic, Luiz Inácio Lula da Silva, and Chief-of-Staff, Dilma Rousseff, participated in the ceremony held for the completion of the first stage of the enhancement and modernization work done at the Presidente Getúlio Vargas Refinery (Repar), in Araucária (state of Paraná). Petrobras’ CEO, José Sergio Gabrielli de Azevedo, and Downstream director, Paulo Roberto Costa, also attended the event.


Before the ceremony, President Lula and his delegation visited the Propene Production Unit, one of the plants that were completed in this first stage. In total, the unit will receive investments in the order of $5,4 billion for the construction of 19 new units.


Petrobras’ CEO, José Sergio Gabrielli de Azevedo, highlighted the importance of the large number of jobs the work generated. According to the CEO, more than 15 thousand employees work at the refinery today. "It is the largest investment in course in the state of Paraná and Petrobras' biggest investment in refining," he said. The number of employees there is expected to top 20,000 next June.


Strategic activities


To President Lula, improving the quality of the oil derivatives, the main goal of the enhancement and modernization work, will adjust Petrobras' fuel to the most advanced international laws. "In addition to improving the quality of life of the Brazilian people, we will be able to export derivatives, and not crude oil," he said. With the improvements, Repar will produce diesel and gasoline with lower sulfur contents.


Lula also emphasized Petrobras' strategic position in the country's economic development. To him, the Company was essential to combat the crisis in Brazil, when it decided to maintain its planned investments. The President also cited the pickup in the Brazilian naval industry, driven by orders Petrobras has placed for drilling rigs and vessels.


Expansion and modernization


In addition to the Propene Production Unit, the Integrated Control Center, the new Firefighting Training Center, a boiler and two power substations were also inaugurated. The modernization and expansion process at Repar, which got underway in 2006, is expected to be completed in 2012.

Petrobras signs contracts for Comperj

Petrobras signs contracts for the implementation of the Rio de Janeiro Petrochemical Complex

Source: Petrobras

Date: 03/09/2010 15:22

This Monday (03/08), Petrobras signed four contracts for the implementation of the Rio de Janeiro Petrochemical Complex (Comperj) in Itaboraí (state of Rio de Janeiro). The agreements are for the construction of the Complex's Atmospheric Vacuum Distillation and Catalytic Hydrocracking units. Additionally, a contractual amendment was signed with Cadae (the state water utility) and a cooperation agreement with the Ministry of Cities, the Ministry of Mines and Energy, the National Development Bank (BNDES), the Caixa Econômica Federal (CEF), and Petrobras.


With the water utility, the contractual amendment is for the construction, by Petrobras, of a duct. In turn, and as a counterpart, Cadae will supply treated water to the Petrochemical Complex construction work. "This is an agreement worth R$56 million, under which Petrobras will build all of the facilities to supply water to the Comperj. After the work has been completed, drinking water will be supplied to the Itaboraí region," highlighted Petrobras' Downstream director, Paulo Roberto Costa, during the press conference held Friday (03/05) at Petrobras' main office building in Rio de Janeiro.


The cooperation agreement, meanwhile, aims to make it feasible for there to be coordinated efforts among the participants in planning, detailing, and organizing actions and investments directed towards fostering development with social inclusion and socioenvironmental responsibility in the ambit of the municipal administrations that are parties to the Intermunicipal Easter Fluminense Region Consortium (Conleste). The agreement foresees enabling urban and social, sanitation, transportation, education, and habitation projects. "We will have a Master Plan for each town and a Regional Master Plan, which will serve as the base in order for this agreement to be able to direct resources to the required infrastructure," said the Downstream director.


The agreements were signed on Monday (03/08), in Itaboraí (state of Rio de Janeiro). The event was attended by the president of the Republic, Luiz Inácio Lula da Silva; the governor of the State of Rio de Janeiro, Sérgio Cabral; Chief-of-Staff, Dilma Rousseff; and by the minister of Mines and Energy, Edison Lobão. Petrobras' Downstream director, Paulo Roberto Costa, and its Gas & Energy Director, Graça Foster, represented the Company.

Aker Solutions wins major contract for two FPSOs in Brazil

Date: 03/08/2010 10:10


Aker Solutions has signed a major contract with Petrobras to supply sulphate removal units (SRU) for two FPSOs (Floating Production Storage and Offloading) platforms (P-58 and P-62) which will operate offshore Brazil. Contract value is USD 41 million.

The scope of work comprises the supply of two sulphate removal systems with associated equipments. The SRU systems will be installed on the topsides of the P-58 and P-62 FPSOs.

The sulphate removal technology provided by Aker Solutions delivers treated and de-sulphated seawater for injection into the hydrocarbon reservoir to maintain the pressure and control scaling and souring effects in the reservoir. High quality injection water devoid of sulphate and particles provides cost savings and improves the safety aspect in the handling of well streams.

“The Brazilian market is fast growing and there is a huge potential for the type of solutions we can offer through our highly experienced team,” says Ronaldo Ribeiro, President of Aker Solutions’ process systems business in Brazil. Aker Solutions has deep roots in Brazil and gained significant experience over the years through previous deliveries of several similar projects using both local and international execution. “This contract reflects the diversity of products and services Aker Solutions offers in Brazil to meet a wide range of clients’ needs in the country,” concludes Ronaldo.

The contract will be executed by Aker Solutions´ team based in Rio de Janeiro who will further develop the conceptual design and oversee the project all the way through delivery. Detailed engineering, procurement, fabrication of major equipment, commissioning and start-up are included in the contract.

“Aker Solutions is committed to implementing a considerable level of Brazilian content in the execution of this contract,” says Børre Sveen, President of Process Systems in Norway. "With this contract we are able to capitalize on our expertise in SRU technology through our local engineering and life cycle service team in Brazil," states Borre.

The FPSO P-58 shall produce 180 000 barrels of oil per day and will operate in the North part of Parque das Baleias field. P-62 has equal capacity and will operate in module 4 of the Roncador field, both located in the Campos’ Basin offshore Brazil. First oil is scheduled for 2014.

OGX Announces the Presence of Hydrocarbons in the Well OGX-6

Source: OGX

Date: 03/05/2010 14:10

OGX Petróleo e Gás Participações S.A., announced today that it has identified an oil-bearing interval in the Albian section of well 1-OGX-6-RJS, located in the BM-C-41 block, in the shallow waters of the southern part of the Campos Basin. OGX holds a 100% working interest in this block.

So far an oil column of about 70 meters with approximately 38 meters of net pay was encountered in carbonate reservoirs in the Albian section. Thermobaric effects associated with volcanism in the area contributed to optimize the permo-porosity properties of the reservoirs. The drilling in the Albian section is still in progress and the well OGX-6 will be drilled up to a final depth of approximately 3,600 meters.


More than 50 meters of reservoir rock cores have been collected at this well in order to analyze characteristics of the reservoirs and to aid in the appraisal and development of future projects. These sample cores and logs indicate a strong correlation between the Albian reservoirs of OGX-6 (Etna), OGX-3 (Waimea), and OGX-2 (Pipeline). The Etna prospect is located 8.5 km to the northeast of the Waimea prospect and is structurally indicates 400 meters above the Waimea reservoir.

"Our review of this data indicates that these accumulations may be connected and that the recently discovered oil province may, in fact, extend to the north of the BM-C-41 block, confirming its very significant petrolific potential,” commented Mr. Paulo Mendonça, OGX's General Executive Officer. “New data will be collected and new wells will be drilled in order for us to better map the prospects identified in this province” added Mr. Mendonça.

The OGX-6 well is located in the BM-C-41 block and is situated approximately 82 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 137 meters. The rig Ocean Quest, provided by Diamond Offshore, initiated drilling activities on February 2, 2010.

CARGOMAXX secures contracts for Brazilian newbuilds

CBO's newbuilds will have CARGOMAXX multi-purpose cargo tanks.


CARGOMAXX tanks can carry bulk cargo and return cargo like drill cuttings.
CARGOMAXX has been awarded contracts to supply cargo equipment for four vessels with designed by Ulstein Design for Brazilian shipowner Companhia Brasileira de Offshore (CBO), part of Group Fischer.

CARGOMAXX will be supplying the advanced hybrid cargo equipment package to Ulstein Design, which in turn will supply for a design, equipment and support package for the vessels (2 x ULSTEIN PX105s and 2 x ULSTEIN PX106s). The vessels are to be built at Allianca shipyard in Bazil.

CBO has a long term charter for the vessels with the Brazilian national oil company Petrobras.

Said the company: "Petrobras has specified in the hybrid cargo system that return cargoes such as drill cuttings must be carried underdeck, combined with dry bulk and liquid cargoes."

“The CARGOMAXX system combines maximum cargo flexibility with increased payload and the possibility to carry difficult return waste cargoes such as drill cuttings. This offers oil companies such as Petrobras a safe and environmentally accepted solution for underdeck transport of drill cuttings. This combined with maximum flexibility of the cargo system, results in fewer support vessels being needed," said CARGOMAXX's Managing Director Wijnand van Aalst.

"CARGOMAXX is happy with the ongoing co-operation with Ulstein Group on the current Statoil vessels and is delighted with these new contracts. These are a confirmation of strengthening the excellent corporation and development between Ulstein Group and CARGOMAXX," said Mr van Aalst.

“To utilise the full potential of CARGOMAXX a close co-operation with the vessel design company and shipowner is essential. With Ulstein Group and CBO this now has become reality”, he said.

STX Europe to Open New Shipyard in Brazil

Date: 03/04/2010 13:50


To meet the growing market in Brazil, STX Europe will expand its shipbuilding capacity for Offshore & Specialized vessels by setting up a new shipyard. The yard will be located in Fortaleza, in the Ceará state of Brazil.


STX Europe entered the Brazilian market ten years ago, and has by continuous effort and excellent cooperation with its local partners PJMR developed a strong position to meet the demanding requirements of the oil and gas industry in Brazil.


STX Europe has since the acquisition of the Niteroi shipyard in 2001 successfully delivered more than twenty vessels in the range from platform supply vessels to anchor handling tug supply vessels, ROV and pipelaying construction vessels. The yard has in the last few months received orders for three new advanced PSV offshore vessels, and has now eight vessels in the backlog for delivery up to 2013.


To meet the increased demand for building of more complex vessels in Brazil, STX Norway Offshore AS (subsidiary of STX Europe AS) intends together with its Brazilian partner PJMR to invest approx USD 100 mill over a period of three years. The project is expected to benefit from domestic financing on favourable terms, supported by governmental resources.


Roy Reite, President of STX Europe's Offshore & Specialized Vessels business area, said, "The project is of strategic importance for our business area. The new shipyard will strengthen our ability to serve our clients in Brazil with increased capacity and capability. The new yard in Ceará aims to serve the growing Brazilian oil and gas market by supplying various types of vessels as offshore & specialized vessels and LPG carriers. We look forward to continuing the good cooperation with our clients and partners in Brazil."


The production capacity is estimated to be approx 20.000 tons of steel per year. The total yard area is 320.000 m2. Production start is planned within a two years period. The new shipyard will have about 1500 employees in addition to subcontractors.

$2.5B Pemex Deal - Braskem & Idesa

RIO DE JANEIRO (Dow Jones)--Brazilian petrochemicals company Braskem SA and Mexico Idesa signed a deal with Mexican state oil company Pemex to invest in a petrochemicals complex, Braskem said in a statement Tuesday.

Braskem and Idesa will jointly invest $2.5 billion in the project, which includes an ethane-supply contract.

Braskem will supply 65% of the capital and Idesa 35%, Braskem said.

Ethane is a basic raw material used in petrochemical production.

A formal agreement will be signed in the presence of Brazilian President Luiz Inacio Lula da Silva and his Mexican counterpart, Felipe Calderon, Braskem said.

Braskem and Idesa won an auction late 2009 to supply 66,000 barrels a day of ethane for 20 years to Pemex at its planned Coatzacoalcos complex in Veracruz State.

The new petrochemicals facility is due on stream in 2015.

$2.5B Pemex Deal - Braskem & Idesa

RIO DE JANEIRO (Dow Jones)--Brazilian petrochemicals company Braskem SA and Mexico Idesa signed a deal with Mexican state oil company Pemex to invest in a petrochemicals complex, Braskem said in a statement Tuesday.

Braskem and Idesa will jointly invest $2.5 billion in the project, which includes an ethane-supply contract.

Braskem will supply 65% of the capital and Idesa 35%, Braskem said.

Ethane is a basic raw material used in petrochemical production.

A formal agreement will be signed in the presence of Brazilian President Luiz Inacio Lula da Silva and his Mexican counterpart, Felipe Calderon, Braskem said.

Braskem and Idesa won an auction late 2009 to supply 66,000 barrels a day of ethane for 20 years to Pemex at its planned Coatzacoalcos complex in Veracruz State.

The new petrochemicals facility is due on stream in 2015.