Main projects in Brazil's Growth Acceleration Plan outlined by Petrobras

The Brazilian Growth Acceleration Plan (GAP) launched by the Federal Government includes 183 of Petrobras' Strategic Plan projects, representing investments to the tune of R$171.7 bln (US$68.7 bln) in oil and gas and in renewable fuel programs to be made by Petrobras and its partners. This investment, to be made through 2010 and only in Brazil, reflects outlays already included in the 2007-11 Business Plan adjusted for revisions in costs of certain projects already approved by the Board of Directors, notably the Rio de Janeiro State Petrochemical Complex (Comperj), the Abreu e Lima Refinery in Pernambuco, the ethanol export pipelines and the Gas Production Anticipation Plan (Plangás). The Strategic Plan is in line with the GAP's goals that include: o Ensuring Brazil's long-term oil self-sufficiency, with a minimum production 20% above Brazilian internal consumption, with a minimum 15-year reserve/production ratio, and heightened light oil production; o Boosting and modernizing the refining park, increasing Brazilian oil participation in the processed load and bettering byproduct quality; o Accelerating Brazilian gas production and offer; o Ensuring leadership in the biofuel area. Aside from the several ongoing projects, other relevant work will commence in 2007, including major investments in downstream area, such as the Abreu e Lima Refinery, in Northeastern Brazil, and the Petrochemical Complex in the State of Rio de Janeiro. The largest individual project ever carried out by Petrobras, with total investments exceeding R$21 bln (R$8.2 bln up to 2010) and undertaken in partnership with private partners, the Rio de Janeiro Petrochemical Complex (Comperj) will be capable of processing 150,000 barrels of Brazilian heavy oil per day. The Complex will be formed by one Basic Petrochemical Product Production Unit (BPU) and by six second-generation petrochemical units. The project includes the São Gonçalo Intelligence Center, a logistics base in São Gonçalo, and the oil supply pipeline. Construction is expected to start off in 4Q 2008 and operations are hoped to commence in 2012. Comperj's production will change the Brazilian petrochemical sector from the structural standpoint. The complex's main products will include: Diesel fuel, ethane, propene, benzene, paraxylene and butadiene in the first generation, while polyethylene, polypropylene, PET, PTA, ethylene glycol and styrene in the second. Other petrochemical projects with private partners include Polipropileno Paulínia S.A. (PPSA): Polypropylene (PP) production unit located in Paulínia (SP), with initial capacity to produce 300,000 tpa, using propane produced at the Petrobras refineries as raw material. Total investments will reach R$500 million and operation is expected commence in H1-2008. REGAP Acrylic Complex - MG: Designed to produce Acrylic Acid using propene produced by Petrobras' refinery located in Betim, Belo Horizonte Metro Region. The investments in question for this project are R$1.3 billion and construction is expected to be complete in 2011. Petroquímica SUAPE - PE: Plant to produce 550,000 tpa of PTA (Purified Terephthalic Acid). With production aimed at textile and plastic packaging industries, investments there will total R$1.2 billion and operations slated to kick-off in 2009.