Snapshot: Petrobras’ latest capex announcements

Brazil's state oil company Petrobras is accelerating the development of projects in line with the federal government’s intention to unlock large undertakings with the potential to generate thousands of jobs. 

CEO Magda Chambriard replaced Jean Paul Prates in May amid government discontent with the pace of new investments. 

BNamericas outlines recent investment announcements made by Petrobras, which are mostly focused on the downstream segment. 

UFN III 

On Friday, Petrobras said it will invest 3.5bn reais (US$610mn) to resume construction of the UFN III fertilizer plant in Mato Grosso do Sul state. 

The project is part of the company’s strategy to make a comeback in the fertilizer segment. 

The plant is scheduled to start operating in 2028. 

ANSA

Some 870mn reais will go to resuming operations at the Araucária Nitrogenados (Ansa) fertilizer plant in Paraná state, which are expected to restart in May 2025.

RNEST

The oil giant plans to invest 6-8bn reais in the expansion of the Abreu e Lima (RNEST) refinery in Pernambuco state.

But a new tender for construction of the second train will have to be launched since the previous one was canceled after participants failed to reach an agreement on the price with Petrobras. 

REPAR

Petrobras has allocated 3.2bn reais for maintenance and investment projects at the Presidente Getúlio Vargas refinery (Repar) in Paraná.

Among the projects is a new medium hydrotreating unit (HDT) to increase the production of S10 diesel, as well as energy efficiency improvements. 

BOAVENTURA 

Petrobras plans to invest approximately 20bn reais in the refining sector in Rio de Janeiro state over the next few years. 

At the Boaventura complex, 13bn reais will be invested in plants to produce lubricants, diesel and aviation kerosene. 

REDUC

Another 7bn reais will be invested in improvements at the Duque de Caxias (Reduc) refinery, also in Rio state.  

HYDROGEN

Petrobras will invest 90mn reais to build its first pilot plant to generate renewable hydrogen at the Vale do Açu thermoelectric power plant in Alto do Rodrigues, Rio Grande do Norte state. 

SHIPBUILDING

In May, Petrobras said part of the US$73bn capex foreseen for exploration and production (E&P) by 2028 will be reserved for the offshore shipbuilding industry, including 14 FPSOs, 16 tankers and 38 support vessels. 

The company’s Maria Quitéria FPSO produced its first oil on October 15 while the Almirante Tamandaré FPSO arrived in Brazil from China on October 25 and is due to start operating by the end of this year or early 2025. 

STRATEGIC PLAN

Petrobras’ 2024-28+ strategic plan involves investments of US$102bn, with 71.5% going to E&P.  

The next plan – the first under Chambriard’s term – is expected to be announced in November.