25-08-09 There is no overbilling or overpricing in the Abreu e Lima earthwork. During the conceptual project preparation phase (Phase 2), the refinery was budgeted at $ 4.05 bn, with capacity to process up to 200,000 barrels of oil per day. In that phase, the investments that were required to build a refinery, based on international parameters, was $ 20,000 per barrel of capacity.
With the completion of the Basic Project (Phase 3), and with the increase in refining capacity to 230,000 bpd, foreseen investments rose to $ 12 bn. This amount is perfectly compatible with the construction costs of a refinery, currently in the range of $ 50,000 per barrel of capacity. The exchange rate also had an effect on these projections.

Investments increased on account of service and equipment price spikes due to the heated oil industry up to mid-2008. Additionally, the project got a new sulphur treatment system and toxic gas emission reductions.
It must be clarified that Petrobras' Executive Board has not approved this investment yet. The company is working on reducing the refinery's costs. The measure is a response to a context of international crisis, one in which the demand for oil industry products and services is expected to decrease and, thus, bring product and service prices down too.

Several bidding procedures have been cancelled and commenced again, contracting processes are currently underway, and proposals are being assessed by the technical teams. For this reason, the total value of the refinery has not been defined yet.
There will be no delays in the construction work, as the work that has already been contracted can be done regardless of the bidding procedures in course. The earthwork is 85 % complete and buildings have already started being constructed. The refinery is scheduled to go on stream in the first quarter of 2011.