Petrobras and PDVSA Sign Abreu E Lima Refinery Agreement

Brazilian integrated energy major Petrobras and Venezuelan state-run oil company PDVSA have signed a partnership agreement to establish the $4.05 billion Abreu e Lima refinery in Pernambuco, Brazil.

The agreement lays out the terms for the refinery’s incorporation, including shareholding, set at 60% for Petrobras and 40% for PDVSA. It also defines the terms for the future signing of the articles of incorporation and of the shareholder agreement.

The Abreu e Lima refinery will be capable of processing 200,000 barrels of oil per day, out of which 50% will each come from Brazil and Venezuela.

The plant is expected to go online in the second half of 2010 and is expected to reach full capacity in 2011. Some 65% of the processed volume will be diesel fuel. Liquefied petroleum gas, petrochemical naphtha and coke will also be produced.