Pernambuco refinery to process Venezuelan crude
The Abreu de Lima refinery planned by Venezuela's state oil firm PdVSA and Brazil's federal energy company Petrobras
for the Brazilian state of Pernambuco will process Venezuelan crude from joint E&P projects to be carried out
from next year in Venezuela, PdVSA president and energy and oil minister Rafael Ramirez told.
Brazil and Venezuela signed a slew of memorandums of understanding earlier this year -- 18 according to Ramirez --
ranging from petrochemicals to bio-diesels, but the two that are moving fastest are those related to the refinery and
E&P, he said.
In 2006, in terms of E&P "we have several areas we will start in Venezuela" before eventually doing the same in
Brazil. In the past Ramirez has said that the joint E&P will be done in about 20 maturing fields, where massive
amounts of natural gas, vapour or water need to be injected in order to ensure stable production.
"It may cost from $ 2 bn-3 bn," Ramirez said on the Abreu de Lima refinery's potential capex, confirming previous
assessments. "Everybody is building refineries, we have a tremendous problem with steel getting more expensive."
Analysts agree there is a need to increase global oil refining capacity.
The Pernambuco plant, in northeast Brazil, is expected to add about 200,000 bpd in refining capacity to PdVSA's
current 3.3 mm bpd including its facilities abroad.
