Petrobras looks to China for help

Brazil’s Petrobras is seeking a deal with China’s Sinopec for the construction of its Premium I oil refinery in the northeastern state of Maranhão.
Federal Energy Minister Edison Lobão said during a television interview that the state-run company could not alone bear the cost of its US$24.9 billion five-year refinery budget.
“Petrobras is having certain financial difficulties. I recommended to the [Petrobras] president, [Maria das Graças Foster] that she should go to China to close a deal with a big state-run company so that it becomes involved with the refinery in Maranhão,” Lobão said.
Premium I is one of four Petrobras refineries under construction and is seen by analysts as vital to reducing the company’s rising oil import bill.
The Rio de Janeiro-based firm is expected to import 110,000 barrels per day (bpd) of gasoline and 190,000 bpd of diesel fuel to meet domestic demand. The company says it imported an average of 90,000 bpd of gasoline in 2012.
Originally earmarked for a 2016 start-up, Premium I is not expected to begin operating until 2018.
The refinery will comprise two production units capable of processing 600,000 bpd. Its principal product will be 10-ppm diesel fuel. (February 28, 2013)