Brazil Petrobras to invest in marketing and refining

23-Aug-06

Brazil's state-run oil company Petroleo Brasileiro SA (Petrobras) is to invest $23.1 billion in marketing and refining from 2007 to 2011. $14.2 billion is to be invested in refining - 26% for the conversion of existing refineries to process more heavy crude, 19% for the expansion of Brazil's 11 oil refineries, 19% for the improvement of the quality of gasoline produced in Brazil, 12% to improve diesel fuel, 6% is earmarked for security, environment and health 5% for maintenance and infrastructure The investment is almost double the $12.4 billion Petrobas had earmarked for downstream (all the activities following exploration and production of oil, or upstream activities) investments in its 2006 to 2010 business plan. Current refining capacity of the company is 1.908 million bpd is targeted to be boosted to 2.376 million bpd by 2011 and 3.201 million bpd by 2015. Petrobras plans to build a new refinery in Pernambuco in a joint venture with Venezuela's PDVSA. Petrobras also plans to spend $3.3 billion in the petrochemicals and fertilizer sector, much of it for a petrochemical complex near Rio de Janeiro, scheduled for completion by 2012.