Brazil and Venezuela Ready to Start Joint Oil Refinery

A dispute that lasted almost two years ended last January 14. The new refinery belonging to Petrobras, Brazilian oil giant, will be installed in the industrial and port complex in Suape, in the southern coast of the state of Pernambuco.

The US$ 2.5 billion investment was being fought over by 10 Brazilian states. Suape, however, showed infrastructure and logistics technical advantages in relation to the other competitors.


The refinery will be built with the participation of the state owned Venezuelan oil company Petroleos de Venezuela (PDVSA).


The protocol for the Petrobras/PDVSA partnership was signed by the Brazilian president, Luiz Inácio Lula da Silva, and his Venezuelan counterpart, Hugo Chávez, in Caracas, capital city of Venezuela.


The project foresees the installation of a refinery plant, with the capacity of processing 200,000 barrels per day (bpd) of heavy oil.


Another 11 cooperation agreements were signed by the two oil companies, including the construction of a lubricants factory in Havana, capital of Cuba. For this there will be a third partner: the Cuban state owned company Cupete.


Another deal signed was for Brazil to supply ethanol to add to petrol to Venezuela. Currently, that country adds tetraethyl lead, an input far more pollutant than ethanol.


The choice for the Suape complex, in one of the most oriental points of Brazil, happened because of its proximity to the great consumer centers, such as the United States and Europe. The refinery in Pernambuco will process crude oil extracted in Brazil and Venezuela, transported through seaways.


According to Gilberto Prado, president of Renor, company set up to lead the undertaking, the construction will start in six to eight months. The plant, however, will only be ready to operate in 2010.


“A work group was formed, among the companies involved for the process to start quickly. The Brazilian government has committed to remove any bureaucratic obstacles,” he said.


Another state in the Northeast region of Brazil, Ceará, has been holding conversations with the Saudi multinational Saudi Aramco for the constructions of a refinery in the industrial hub of Pecém.


Aramco even registered at the Ministry of Mines and Energy in Brazil, a letter of intentions about the undertaking. The investment would be of US$ 3 billion.


Translated by Silvia Lindsey
ANBA ”“ Brazil-Arab News Agency

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  • AUGUSTUS

    Despite appearances, Brazilian (deepening) commitments with Venezuela are likely to be deemed unwise
    Despite appearances (even in À¢€œobvious projects) any commitments with Venezuela may turn sour.

    Because of the significant ideological differences between Brazil and Venezuela, along with other potentially divisive positions and agendas, I fear that any joint venture between the two nations is likely to fail in the long run; at best I anticipate significant disputes in the horizon.

    Clearly, Brasilia and Caracas are pursuing diametrically opposed directions, have adopted distinct international postures, and pursue drastically different agendas to attain the conflicting overall common ambition to assume some À¢€œformÀ¢€Â of Leadership in South America.

    Likewise, sooner or later, new government(s) of potentially opposing persuasion will (hopefully) occupy the Alvorada Palace in Brasilia; thus further widening the political and ideological gap with Caracas.

    Most importantly, Hugo Chavezˢ۪ dangerous association with Iran & Belorussia, his radical antagonistic rhetoric against the United States (and other Western Nations), along with (often) irresponsible and (possibly) unreliable posture and behavior do not demonstrate evidence for attractive or desirable profile for an important Brazilian ally.

    If I were to have any measure of influence in Brasilia, I would have already urged the Brazilian Senate to proceed with considerable caution in regards to any further partnership or association with the questionable Venezuelan government (in light of its current leadership)..
    Hopefully my views will be proven excessively pessimist, and the long-standing Venezuelan-Brazilian ties of amicable association will be successful, in spite of the disagreeable (radical) nature of Hugo ChavezÀ¢€¦

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