• Categories
  • Archives

Brazil-Venezuela Venture Will Refine 200,000 Oil Barrels a Day

Brazil's oil multinational Petrobras Brazil's government-managed oil multinational Petrobras and government owned Petróleos de Venezuela (PDVSA) signed on March 26 an agreement that sets the bases for the partnership between the two companies for the Abreu e Lima Refinery, in Northeastern Brazil.

The agreement lays out the terms for the incorporation, including shareholding, set at 60% for Petrobras and 40% for PDVSA. It also defines the terms for the future signing of the Articles of Incorporation and of the Shareholder Agreement. The specific terms of the agreement are protected by a confidentiality agreement.

The Abreu e Lima Refinery will get an investment in the order of US$ 4.05 billion and will be capable of processing 200,000 barrels of oil per day, 50% of which from Brazil (Marlim) and 50% from Venezuela.

The plant is expected to go online in the second half of 2010 and to reach full capacity in 2011. Some 65% of the processed volume will be diesel fuel, the oil derivative that is used the most in Brazil. Cooking gas (LPG), petrochemical naphtha, and coke – solid fuel used in the steel, cement, thermal, and aluminum industries – will also be produced.

According to the agreement Petrobras will also continue with studies on a corporate share of up to 10% in the oil exploration and production project in the Carabobo 1 field, in the Orinoco Range, in Venezuela.

PDVSA will hold no less than a 60% share. The studies will continue until the bidding procedure announced by PDVSA for the remaining 30% share, have been completed.

Mercopress

Tags:

  • Show Comments (8)

  • ch.c.

    “Can someone tell me why….gasoline is so expensive here in Brazil?”
    Of course.
    Just listen to Robin the Crook :

    – Brazil is oil self sufficient
    – Better yet Brazil has ethanol…..competitive to oil

    Funny then that America being oil importers addicted, and not producing enough ethanol…..has a pump price MUCH LOWER THAN THE SNART COOKIES…..the brazilians !

    It is furthermore even more strange that NOOOOOOO self sufficient oil producing countries…has higher pump prices than in Brazil.
    If one of you know 1, please namethe country.

    I can only suppose that Robin the Crook is taxing the fuel……to develop the country
    highways, roadways.
    True that Brazil has only 10 % of paved roads, 50 % of which have millions of large potholes.
    A rate similar than before….Robin the Crook !
    Meaning Crooks succeed Crooks.

    The true story is that yesss the taxes are effectively to develop the wealth of those in power.
    Who cares about the 95 % of the Brazilian population.
    The Brazilians Crooks have a clear view : those who should care for the 95 % of the Brazilian population should not be the Brazilians Crooks, but the developed nations !

    They even pretend that the Dengue Fever spreading now in Brazil “could be” due to….the climate warming !!!! Yesssss….reported on CNN—from Brazilians “experts crooks” !

  • The Guest

    JoÀƒ£o
    I just found out that my departure time was move up to later today, the 4th so this may be my last blog until I return. Sicilia, Crete and Israel may be a part of this journey, no confirmation as yet.

    “Vladivostok is the end of the Trans Siberian rail road, is it not? Did you go there during the harsh Russian winter? What is your impression of the erstwhile U.S.S.R? “

    Vladivostok is at the end of the Trans Siberian railroad. Fortunately for me, I was there in July so I did not experience the harsh Russian winter; however, it was still a bit chilly especially in the evenings. I found Vladivostok to be a place of independent thinkers, I guess being so far removed from Moscow plus the fact that people who were against the political system of the USSR were shipped there had a big influence.

    “Even though, we are supposed to be producing ethanol in abundance, why is the price so high? “

    Lack of competition.

  • João da Silva

    The Guest
    Hi Captain (since you refuse to reveal your first name!),

    I am very impressed with your sailing career, especially when you mentioned:

    [quote]Stops included Vladivostok, Russia;[/quote]

    Vladivostok is the end of the Trans Siberian rail road, is it not? Did you go there during the harsh Russian winter? What is your impression of the erstwhile U.S.S.R?

    [quote]I was actually off shore Charleston, SC at anchor using wireless internet connection when ever I could get a signal.[/quote]

    I think that Admiral.Forrest has better communication system in his boat.He never complained about “Lost” signals. May be you should hire him (and me) as communication experts!

    [quote]I am ashore now until early on the 5th. [/quote]

    Great. Keep on blogging till then!

    As for the fuel prices in Brazil, the current rate for the gasoline is 2.49 Reais per liter and that of the ethanol is 1.69 . TodayÀ‚´s exchange rate is 1.71 Reais per dollar. Even though, we are supposed to be producing ethanol in abundance, why is the price so high?

    Look forward to be in touch with you before you sail off.

  • The Guest

    JoÀƒ£o
    “I have talked to several people who have been to Dubai (all nationalities) and they confirm what you say. One of my friends said that it is the “Rotterdam” of the East. I bet you have been to Rotterdam also.”

    I have not been to Rotterdam as yet. Most of my sailing career have been on the US west coast including Alaska, east coast, gulf coast and the caribbean. During my training I travelled to the south pacific which included Australia and New Zealand. In 1999 I made a 5 months around the world trip which for me began in Los Angles, CA and ended in Corpus Christi, TX, (the ship began in Houston, TX). Stops included Vladivostok, Russia; Pusan, South Korea; Singapore; The UAE; Yanbu, Saudi Arabia; Port Suez, Egypt; Gibraltar and New York/New Jersey.

  • The Guest

    JoÀƒ£o
    “You seem to be still on shore! Almost missed your message.”

    I was actually off shore Charleston, SC at anchor using wireless internet connection when ever I could get a signal. I wrote a part 3 to the above but was unable to up load it due to loss signal, also explains the time difference between parts 1 and 2. I am ashore now until early on the 5th.

    “Petrobras which is controlled by the government will never ever reduce the price of the gasoline nor the Ethanol.”

    I do not dispute that fact while Petrobras is the sole distributer. That is why I said, “What Brazil need is more wholesalers and refiners which will lead to more competition and ultimately lower prices.” These are wholesalers and refiners who are independent of Petrobras.

    “Let us not forget, that higher the prices are, better it is for them. Why?. Because of the Federal and State Taxes (which are fixed percentages).”

    Lower prices usually lead to more sales because people will drive more when they do not have to first think about the cost of gasoline, thus more taxes will be collected. This is a very important fact because in a short few years most cars on the roads of Brazil will be “Flex” cars not pure gasoline cars. What will the government and Petrobras do then, raise the price of ethanol to that of gasoline?

    “But I can not imagine a scenÀƒ¡rio, when the prices of gasoline or ethanol coming down to the level of OPEC countries. It is simply not profitable for the government not Petrobras (nor the distributors)”

    This I cannot imagine either because it cost Petrobras more to extract oil than it cost OPEC countries. As time goes by and Petrobras perfects the Technology to extract oil the cost per barrel will decrease.

  • João da Silva

    The Guest
    Hi,

    You seem to be still on shore! Almost missed your message. Since nobody wants to “tell you why”, I will try to explain to the following stretch of your comment (Though I have tried to do it on this issue ever since I came to blog on this site):

    [quote]Should Petrobras and the government reduce prices by providing subsidies as is the case in Venezuela? My answer to that question is no. Why?, because once any government or industry goes down the path of subsidies they become difficult to recind in the future. What Brazil need is more wholesalers and refiners which will lead to more competition and ultimately lower prices.[/quote]

    Petrobras which is controlled by the government will never ever reduce the price of the gasoline nor the Ethanol. I know that, when the ethanol program was developed by our military government in the late 70À‚´s, the objective was strategic (Not to depend on the Arab oil and get unpleasant surprises, when every time the OPEC countries under the leadership of Sheik Yamani decided to increase the price of a barrel of crude oil) and to develop alternative source of fuel.At that time, the Ethanol program was subsidized.ie The cost of a liter of Ethanol at the pumps was less than the production cost (please get into your time machine and go back by almost 30 years).

    For the past 12 years, it has become a game on the part of Petrobras as well as the government (not to forget the automakers) to manipulate the prices of BOTH Gasoline and Ethanol according to the cash flowing into the coffer. Let us not forget, that higher the prices are, better it is for them. Why?. Because of the Federal and State Taxes (which are fixed percentages). At least the Brazilians who own “Flex” cars have a choice. They can switch over from one fuel to another, depending on the fluctuation in their respective prices. But I can not imagine a scenÀƒ¡rio, when the prices of gasoline or ethanol coming down to the level of OPEC countries. [i]It is simply not profitable for the government not Petrobras (nor the distributors)[/i]

    In other words, the Brazilians are subsidizing the export prices of Petroleum and Ethanol,like they subsidize the exports of beef,poultry and dairy products. If you talk to any [i] sane Brasilian economist who does not work for the government[/i], he will tell you that.

    btw, I expect the fuel prices to go down in Oct/Nov of this year considerably because of the Municipal elections, just like they went down in 2006 during the Federal and State elections!!

  • The Guest

    Can someone tell me why….Part 2
    The following is what US tax payers get for subsidies that they provide to oil companies. Imagine if there was no competition.
    Apr 1, 2008
    WASHINGTON (CBS News) À¢€”¢ Top executives of the five biggest U.S. oil companies were pressed Tuesday to explain the soaring fuel prices amid huge industry profits and why they were not investing more to develop renewable energy sources such as wind and solar power.
    The executives, peppered with questions from skeptical lawmakers, said they understood that high energy costs are hurting consumers, but deflected blame, arguing that their profits – $123 billion last year – were in line with other industries.
    “On April Fool’s Day, the biggest joke of all is being played on American families by Big Oil,” Rep. Edward Markey, a Democrat, said as his committee began hearing from the oil company executives.
    With motorists paying a national average of $3.29 a gallon at the pump (for gasoline, and $4.00 a gallon for diesel) and global oil prices remaining above $100 a barrel, the executives were hard pressed by lawmakers to defend their profits.
    “The anger level is rising significantly,” said Rep. Emanuel Cleaver, a Democrat, relating what he had heard in his district during the recent two-week congressional recess.
    Irving-based Exxon Mobil and Houston-based Shell, BP America and Conoco-Phillipsjoined California-based Chevron in earning a combined $123 billion last year because of rising prices.
    Exxon Mobil made a record $40.7 billion last year alone, reports CBS News correspondent Chip Reid.
    Alluding to the fact that congressmen often do not rate very high in opinion polls, Cleaver told the executives: “Your approval rating is lower than ours and that means you’re down low.”
    “I heard what you are hearing. Americans are very worried about the rising price of energy,” said John Hofmeister, president of Shell Oil Co., echoing remarks by the other four executives from Exxon Mobil Corp., BP America Inc., Chevron Corp., and ConocoPhillips.
    But the executives rejected claims that their companies’ earnings are out of step with other industries and said that while they earn tens of billions of dollars, they also invest tens of billions in exploration and oil production activities.

    “Our earnings, though high in absolute terms, need to be viewed in the context of the scale and cyclical, long-term nature of our industry as well as the huge investment requirements,” said J.S. Simon, Exxon Mobil’s senior vice president.
    But Markey asked Simon why Exxon Mobil hasn’t followed the other companies in investing in alternative energy. The four other companies reported spending as much as $3.5 billion in recent years on solar, wind, biodiesel and other renewable projects.
    “Why is Exxon Mobil resisting the renewable revolution,” asked Markey.
    Simon said his company, which earned $40 billion last year, had provided $100 million on research into climate change at Stanford University, but that current alternative energy technologies “just do not have an appreciable impact” in addressing “the challenge we’re trying to meet.”
    (However in 2006, “Exxon Mobil gave its retiring chairman Lee Raymond one of the most generous retirement packages in history, nearly $400 million, including pension, stock options and other perks, such as a $1 million consulting deal, two years of home security, personal security, a car and driver, and use of a corporate jet for professional purposes.”)

    Markey challenged the executives to pledge to invest 10 percent of their profits to develop renewable energy and give up $18 billion in tax breaks over 10 years so money could be funneled to support other energy and conservation.
    The executives said the companies already are spending billions of dollars – more than $3.5 billion over the last five years – on renewable fuels such as wind energy and biodiesel, but rejected any tax increases.
    “Imposing punitive taxes on American energy companies, which already pay record taxes, will discourage the sustained investment needed to continue safeguarding U.S. energy security,” Simon insisted.
    “These companies are defending billions of federal subsidies … while reaping over a hundred billion dollars in profits in just the last year alone,” complained Markey, chairman of the Select Committee on Energy Independence and Global Warming.

  • The Guest

    Can someone tell me why….
    written by bo, 2008-03-30 20:55:53

    gasoline is so expensive here in Brazil?
    The answer to your question.
    “Getting that oil out of the earth’s crust is a formidable challenge, most of Brazil’s oil lies off its Atlantic coast, and Petrobras has become a global leader in ultradeep offshore oil extraction. “
    Where do you think Petrobras got the money which enabled it to become the “global leader in ultradeep offshore oil extraction? ” While you think about that also consider this fact. Petrobras imports more light crude oil than its export of heavy crude oil, exports which are only recent and are miniscule in the amount of barrels produced. That means most of the oil Petrobras produces is for domestic use. If Petrobras is not generating big profits from exports then the money for the continued development of Brazil,s oil and gas industry can only come from one other place, brazil’s consumers.
    Should Petrobras and the government reduce prices by providing subsidies as is the case in Venezuela? My answer to that question is no. Why?, because once any government or industry goes down the path of subsidies they become difficult to recind in the future. What Brazil need is more wholesalers and refiners which will lead to more competition and ultimately lower prices.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Arrastão, the trio elétrico that ends Salvador's Carnaval

The Other Champions of Brazil’s Carnaval: Violence and Death

Carnaval in Brazil is a time of excesses: excess of fun, music, drinks, drugs ...

Amazon Countries Look for Power in Brazil Meeting

The Continental Amazon will be the theme of the VIII Meeting of Foreign Ministers ...

Brazil’s Embraer Promotes Top of Line Jets af Internationl Fair

Brazilian aircraft maker Embraer is going to participate in the Idex fair for the ...

World Bank Chief Starts Long Brazil Visit Dropping by a Slum

World Bank President Paul Wolfowitz has arrived in Brazil, a country which he describes ...

Israeli Drone to Police Rio’s Favelas in Cleaning Up Effort Before Olympics

Starting next month an unmanned "spy" aircraft will overfly the favelas (shantytowns) of Rio ...

Brazilian Embraer Sells 50 Jets to Texan Taxi Service

The Brazilian aircraft manufacturer Embraer announced today, September 5, the sales of 50 executive ...

In Brazil 95% Oppose Black Bloc’s Action

The Brazilian middle and high classes seem to be the most supportive of the ...

Lula, Left of the Third Way

American influence in Brazil has been massive. Brazilian president recent trip to Europe was ...

Brazil’s Oil Spill Firm Romancing the Arabs

AGS environmental solutions, a Brazilian company that works in prevention and control of accidents ...

Raped by Modernist Zeal

The left had a very good showing in major cities. On the other side ...