Petrobras and the Government of Ceará sign a Protocol of Understandings for a Premium Refinery

19/8/2008


This Wednesday (08/20), Petrobras will sign, at the Port of Pecém, Ceará, a Protocol of Understandings with the Government of the State of Ceará for the construction of a Premium Refinery in the state. The Ceará Port Integration Company (Cearáportos), Petrobras Distribuidora, Transpetro, and the Ceará State Gas Utility (Cegás) will be parties to the Protocol.

The Protocol establishes the intention of Petrobras and of the Government of the State of Ceará to undertake common efforts to assist each other in the goal of making it viable to deploy the Premium II Refinery in the State. According to the protocol, the parts will have 120 days to negotiate, prepare, and agree on a Term of Commitment to be signed by Petrobras, the Government of the State of Ceará, and Cearáportos to set the legal, technical, and economic conditions for the construction of the Premium Refinery in the State of Ceará.

The Protocol gives continuity to the announcement Petrobras made, on June 16 2008, of its intention to deploy a Premium Refinery with capacity to process 300,000 barrels per day of oil in Ceará. By means of detailed technical studies, the Company concluded Ceará was the most appropriate place to build the refinery, since the state has the infrastructure that is required to implement the project.

The project will be built in the area of the Porto of Pecém. Investments are expected to be in the order of $11.1 billion, 90,000 jobs (direct and indirect) will be created, and there will be an increase in tax collection and income generation effect during project deployment.

Production is slated to go online in September 2014 (Phase I – 150,000 barrels per day). The second phase, also to produce 150,000 barrels per day, will take place in September 2016. The refinery will produce mainly EURO V-type diesel fuel (< 10 ppm of sulfur) for exports, and aviation fuel, naphtha, LPG, and bunker to supply the domestic market. Diesel production will account for about half of the refinery’s entire production.

Petrobras press release