Petrobras, Eletrobras, Eletronorte make global investments of R$ 1.6 bn

August 26, 1997 Petrobras will invest R$ 450 million to set up a 430-km long gas pipeline between Jurua and Urucu and the Coari port (Amazonas, Brazil). The terms and conditions for the construction auction will be announced by October, 1997. The gas pipeline is scheduled to be finished by the end of 1999. Urucu's gas production will be processed by Petrobras' Reman refinery and then supplied to thermal plants located in the northern region of the country. In order to extract gas from the Urucu field.
Petrobras, Eletrobras, Eletronorte and private companies will make global investments of R$ 1.6 bn. Petrobras alone will invest $ 503 mm to raise Urucu's production capacity, $ 330 mm of which during 1997, $ 150 mm during 1998 and $ 8 mm during 1999. So far, Urucu received investments of R$ 3 bn. The return on the investment will be achieved in 10 years time. The total natural gas production will be raised from 1.5 mm to 6 mm cmpd as of 1998. The oil production will be raised from 26,000 to 45,000 barrels perday, while the LPG production will be raised from 125 to 950 tons per day. The Reman refinery will have its capacity raised from 15,000 to 45,000 bpd by March, 1999.