Petrobras to Turn Brazilian Complex into Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas)--On March 1, 2008, Petrobras (NYSE:PBR) announced the possibility of building a refinery in Guamare, Rio Grande do Norte State, Brazil. Instead, the company will transform the Guamare Complex into a refinery.

The complex is formed by an oil storage and transfer terminal, three natural gas processing units; an oil treatment station; a diesel production plant; a kerosene production unit; and three waste treatment stations. The complex currently produces diesel, biodiesel, kerosene and liquefied petroleum gas. This decision was taken because of modifications that Petrobras needs to make in the complex to comply with Brazil's National Oil Agency's new regulations that aim to reduce soot in fuels. Petrobras conducted studies and decided to convert the complex into a refinery.

The complex now processes 70,000 barrels per day (BPD), and Petrobras intends to raise the capacity to 120,000 BPD and for the refinery to be able to produce gasoline, as well. The company will complete conceptual engineering in May 2008. Basic engineering will be finished by January 2009. Petrobras plans to start operation by the end of 2010.

The company has other investments in Rio Grande do Norte State, including a $1.7 billion investment in production and exploration. In the gas and energy sectors, Petrobras will invest $117 million to build the Termoacu plant, which will have the capacity to generate 470 megawatts. There will also be two 20,000-cubic-meter-per-day biodiesel plants in Guamare.

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