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:

You May Also Like

Brazil’s Northeast Gets New Wine Technology Center

Brazil’s grape and wine production in the Valley of the São Francisco River is ...

Brazil’s Pandora: Can the Amazon Dam Project Belo Monte Be Stopped?

It’s the biggest forest battle on Earth. The plot: a big government, in this ...

1, 2, 3, 4 Polls See Lula Winning Reelection in Brazil by Landslide

Four surveys in a row have given Brazilian President Luiz Inácio Lula da Silva ...

Brazil: UN Has Project to Rescue the Amazon

With the environment of the Amazon Basin increasingly under siege from deforestation, mining, urbanization ...

The End of the Dollar Black Market in Brazil

Brazil’s Central Bank informed that the unification of the commercial and tourist currency exchange ...

Jobs Up, Real Wages Down in Sí£o Paulo, Brazil

Unemployment in the metropolitan region of São Paulo, Brazil’s largest city, fell in September ...

To Sell Organics Abroad Brazil Needs Rules and Organization

Turned to farmers, producers and processors of organic products with International Certification, the OrganicsBrasil ...

17% of Brazilian Babies Still Don’t Get a Birth Certificate

The Presidential secretary of Human Rights, Mário Mamede, concluded, Thursday, October 27, the defense ...

GDP Good News Raises Hopes and Stocks in Brazil

Latin American markets ended mostly higher on bullish GDP data in Brazil and discount-buying ...

Brazil Appeals to ITC After US Accuses It of Orange Juice Dumping

A note issued by Brazil’s Ministry of Foreign Relations says that the Brazilian government ...