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Petrobras abandons incomplete Comperj refinery project – report
BRAZIL’S national oil company (NOC) Petro- bras has said that it will not complete con- struction work on the Comperj refinery with China National Petroleum Corp. (CNPC). It has explained this decision by claiming that the project is no longer economically viable.
The refinery, which is located outside Rio de Janeiro, has become a “cemetery of corruption”, Petrobras’ CEO Roberto Castello Branco was quoted by Reuters as saying at a recent breakfast presentation.
The CEO said that his company had decided to shelve the project following studies carried out with CNPC in recent months. But other Petrobras executives have said they intend to continue using the troubled facility for smaller projects such as boosting production of indus- trial lubricants, Reuters added.
Comperj became a subject of police probes in “Operation Car Wash,” the worst national cor- ruption scandal ever to have emerged in Brazil, which unearthed a bribe-for-contracts scheme between the government and engineering conglomerates. Prosecutors have alleged that around $13bn was spent in developing the Com- perj refinery since the end of the last decade.
Petrobras teamed up with CNPC to try to complete work on the facility, which is located in the town of Itaborai, in 2017. Finishing con- struction on the refinery was expected to require additional investments of $3.5-4.0bn.
Cash-strapped Petrobras is currently sell- ing off eight refineries throughout the country, as part of its strategy to exit its downstream
business to focus on more lucrative production from Brazil’s pre-salt areas. The state major is aiming to complete the refinery divestments by the end of next year, part of its broader plan to sell $26.9bn worth of assets between 2019 and 2024.
The company is intending to make $20- 30bn in divestments over the next five years, the report cited executives as saying.
Petrobras received non-binding offers for its 144,800 barrel per day (bpd) Refinaria Gabriel Passos (REGAP) refinery in the interior state of Minas Gerais last week, Castello Branco said. The company has said it intends to begin the non-binding phase for other three refineries – Reman, Lubnor and Xisto – over the next few months. ™
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Comperj refinery construction site (Photo: Techint)
Petrobras to begin leasing LNG terminal
BRAZIL’S state-run oil company Petrobras has said it will begin leasing its LNG regasifi- cation terminal in the north-eastern part of the country, in line with a national effort to open up the country’s natural gas market to more competition.
Along with the LNG terminal, the major will also begin leasing a gas pipeline that is associated with the facility, which is situated in Bahia State.
In July, Petrobras signed an agreement with the South American nation’s anti-trust regula- tor, known as CADE. In the accord, it pledged to open up the Brazilian gas market to more com- petition, partly by ending its own monopoly.
The company stressed this point last week, saying in a statement: “The lease is in line with Petrobras’ strategy of improving its capital
allocation and building a favorable environment for new investors to enter the natural gas sector.” Petrobras has initiated pre-bid procedures for those parties that are interested in taking part in the auctions, which will proceed in compli-
ance with state law, the statement added.
The lease agreement does not include the Golar Winter floating storage and regasification
unit (FSRU).
This vessel is currently installed at the site,
which covers an area of 138 square km. The associated 45-km gas pipeline, which originates at the LNG terminal in the Bahia state capital of Salvador, has two gas exit points at Sao Francisco do Conde and Sao Sebastiao do Passe.
Petrobras currently has three LNG regasifi- cation terminals.
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