Petrobras details $74.2B in plans for downstream developments

Source: Petrobras

Petrobras(NYSE:PBR) Downstream Director, Paulo Roberto Costa, recently presented the projects in the Company’s 2011-2015 Business Plan for Refining, Transport, Sale, Logistics and Petrochemicals.

The Downstream area will receive US$74.2 billion of a total US$224.7 billion planned investment in the Petrobras Business Plan up to 2015. Of the US$70.6 billion invested in Refining, Transportation and Marketing, 51% will be for the expansion of refining capacity.

"After 32 years, we are building large refineries. We know that we operate at the market limit, but meet demand," said the director.

Paulo Roberto also noted that over the next five years, Petrobras will increase its processing capacity to 395,000 bpd. The forecast for the period between 2016 and 2020 will be 1.065 million barrels of refined oil per day. "Without new refineries, we will import up to 1 million barrels of diesel in 2020. Today we import 5% of what we sell in liquid oil products. The U.S. imports 3%. In 2011 already, we can’t attend the domestic market. Without building, we have to import, creating foreign wealth", he said.

The director defended new development locations, stating that the demand is growing in the North, Northeast and Midwest. Petrobras has completed the Potiguar Clara Shrimp (RPCC) gas refinery in Rio Grande do Norte, and builds three other units in the Northeast: Premium I, Maranhão, Premium II, Ceará, and the Abreu e Lima, Pernambuco. The Petrochemical Complex of Rio de Janeiro (Comperj) is also under construction.

During the interview, product consumption figures were presented. In the first six months of this year, consumption of liquid products grew on average 6.6%. Gas grew 17%, jet fuel, 12.9%, and diesel, 8.6%. The executive took the opportunity to ensure that the country won’t be without fuel. "Regardless of any increase in consumption, there won’t be any shortage of gasoline or any other oil product in the Brazilian market," he said.

Paulo Roberto also reported that the Banco Nacional de Desenvolvimento Economico e Social (BNDES – The Nation Development Bank) will evaluate PDVSA guarantees, up to September, to pay the 40% for the loan from the Bank for the construction of Abreu e Lima. "If guarantees are approved, the contribution by the Venezuelan company should take place by November. Conditions should be signed by Aug. 20, "he said.

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