Petrobras to Build Large Petrochemical Plant in Latin America

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Researched by Industrial Info Resources (Sugar Land, Texas)--During a news conference on the overseas aspects of Petrobras 2008-12 business plan, authorities from Brazil's state-owned oil firm said they are assessing the project for construction of a large petrochemical plant in Latin America. The plant’s location has not been confirmed since the project is in an early stage.

The plant would be jointly built with partners in the petrochemicals sector in 2012 or later, and Venezuela is one of the countries considered a suitable location for the project for its abundant gas reserves. Although there were early plans to construct a petrochemical complex at the Brazil-Bolivia border, the project was frozen because of higher gas prices in Bolivia, ruling out the country as a possible location. The plant will not be an extension of existing petrochemicals units in Argentina, and it has not been stipulated whether it will be in Peruvian territory.

The Brazilian oil firm plans to spend $15 billion overseas from 2008 to 2012 for exploration and production. Projects in Latin America, the Gulf of Mexico and western Africa will receive $10.5 billion, 70% of the total budget. The company’s goal for fuel, LNG and natural gas production outside of Brazil are estimated at 436,000 barrels per day by 2012 and 698,000 barrels by 2015. The remaining 30% of the total investment will fund refining, transporting, marketing and petrochemical, being the later one of the market areas that Petrobras plans on strengthening in South America.

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