RIO DE JANEIRO - Plans by Brazil's state-run oil company Petrobras (PETR4.SA: Quote, Profile, Research, Stock Buzz)(PBR.N: Quote, Profile, Research, Stock Buzz) to build an oil refinery in the northeastern state of Ceara will require an investment of $11 billion, a company official said on Thursday.
This plant, along with a new oil refinery Petrobras intends to build in Maranhao state, are expected to turn the company into an exporter of oil products, not only crude petroleum, said director of downstream operations, Paulo Roberto Costa.
"These two units are already considering the subsalt cluster (oil discoveries). The aim is to produce mainly high quality diesel for the export market," Costa said.
Both refineries will also produce petrochemical naphtha, diesel, aviation fuel, liquefied petroleum gas (LPG) and high-quality coke.
Some of Petrobras' most recent oil strikes are in the country's subsalt cluster, which could contain 70 billion to 100 billion barrels of oil, including light oil and natural gas, according to experts.
But exploration of this area could be technologically challenging and costly, they say.
The giant Tupi oil field alone, which was struck by Petrobras in late 2007 in the subsalt cluster, has estimated recoverable reserves of 5 billion to 8 billion barrels.
The Ceara plant will have a refining capacity of 300,000 barrels per day (bpd), while the Maranhao unit will likely be able to process double that, Costa said. Investment for this plant has not been defined yet.
Petrobras is in the process of rolling out a series of oil processing, refining and petrochemical investments in Brazil to raise its downstream footprint in the country.
Costa also said Petrobras may have to raise its planned investment in a 200,000-bpd oil refinery it is building in Pernambuco state because of soaring equipment prices.
This investment is currently estimated at $4 billion.
Pernambuco plant, which should start to operate in 2010, is expected to give Brazil auto sufficiency in diesel. Venezuela's state-run oil company PDVSA is a partner in this project.
Petrobras also intends to build a gasoline refinery in Rio Grande do Norte state, to produce 30,000 bpd from 2010.
The company has been buying refining capacity abroad as well, including in the United States and Japan.
This plant, along with a new oil refinery Petrobras intends to build in Maranhao state, are expected to turn the company into an exporter of oil products, not only crude petroleum, said director of downstream operations, Paulo Roberto Costa.
"These two units are already considering the subsalt cluster (oil discoveries). The aim is to produce mainly high quality diesel for the export market," Costa said.
Both refineries will also produce petrochemical naphtha, diesel, aviation fuel, liquefied petroleum gas (LPG) and high-quality coke.
Some of Petrobras' most recent oil strikes are in the country's subsalt cluster, which could contain 70 billion to 100 billion barrels of oil, including light oil and natural gas, according to experts.
But exploration of this area could be technologically challenging and costly, they say.
The giant Tupi oil field alone, which was struck by Petrobras in late 2007 in the subsalt cluster, has estimated recoverable reserves of 5 billion to 8 billion barrels.
The Ceara plant will have a refining capacity of 300,000 barrels per day (bpd), while the Maranhao unit will likely be able to process double that, Costa said. Investment for this plant has not been defined yet.
Petrobras is in the process of rolling out a series of oil processing, refining and petrochemical investments in Brazil to raise its downstream footprint in the country.
Costa also said Petrobras may have to raise its planned investment in a 200,000-bpd oil refinery it is building in Pernambuco state because of soaring equipment prices.
This investment is currently estimated at $4 billion.
Pernambuco plant, which should start to operate in 2010, is expected to give Brazil auto sufficiency in diesel. Venezuela's state-run oil company PDVSA is a partner in this project.
Petrobras also intends to build a gasoline refinery in Rio Grande do Norte state, to produce 30,000 bpd from 2010.
The company has been buying refining capacity abroad as well, including in the United States and Japan.
