Petrobras to set up petrochemical complex in Southeast Brazil

26-Mar-07

Brazil's state-owned oil and gas company Petrobras plans to set up a petrochemical complex in the southeastern part of the country, site of its main operations. Petrobras is in talks with local petrochemical producers Suzano and Unipar, which operate plants in the region, to seek cooperation. Petrobras, Braskem and oil and gas distributor Ultra, announced a deal to jointly buy the Ipiranga Group, which was Brazil's second largest fuel distributor and ran a petrochemical complex in the southern region. The three partners are studying ways to expand the production capacity of Ipiranga's refining plant, which currently processes 17,000 bpd of oil. Petrobras is also negotiating the purchase of a refinery in Okinawa, Japan, whose production capacity is estimated at 60,000 bpd.