Petrobras gets loan for Revap refinery upgrades

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Dec. 14 -- Brazil's Petroleo Brasilerio SA (Petrobras) has borrowed ¥750 billion from a consortium of Japanese banks to finance its investments in the 226,000-b/d Henrique Lage (Revap) refinery.

Sumitomo Mitsui Banking Corp., Mizuho Corporate Bank, and Tokyo-Mitsubishi UFJ Bank Ltd. provided the 10-year loan, which is backed by the Japanese export development agency Nippon Export & Investment Insurance.

The refinery, which is in Sao Jose dos Campos in southeastern Sao Paulo state, produces 15% of Brazil's oil derivatives.

Refinery upgrade
The Revap complex produces petrochemical naphtha, diesel oil, petrol, cooking gas, fuel oil, asphalt, propane, and kerosine. It supplies markets in the Vale do Paraiba region of southeastern Minas Gerais and part of Sao Paulo state.

Petrobras has been conducting a $2.5 billion modernization program at the refinery aimed at raising its heavy oil processing capacity, improving the quality of its diesel, and gasoline, and diversifying its product portfolio.

Last week, Petrobras named Claudio Pimentel manager of Revap, replacing Luiz Eduardo Valente, who will manage Petrobras's fertilizer plant at Fafen, in northeastern Sergipe state.

Attractive terms
Petrobras Chief Financial Officer Almir Barbassa told the state news agency that the conditions for the Japanese loan were "extremely attractive."

Barbassa said, "Of course conditions were not as good as a year ago, but they were pretty reasonable." He did not supply any further details, as the contract has a confidentiality clause.

However, Barbassa said Petrobras's 2008 fundraising plan, currently at $8.25 billion, is completed. "I think there's no room for anything else," he said.

The announcement of the loan follows reports last week that the Brazilian government has been negotiating with Chinese and other investors to guarantee investment in Petrobras.

Many suitors for Petrobras
"It's not only China, Petrobras has several opportunities," said Brazil Mines and Energy Minister Edison Lobao Dec. 8.

Lobao said there have been talks with representatives from the UAE, Japanese groups, and Canadian banks, as well as oil exploration equipment exporters with their own sources of financing.

Lobao said the talks took place both before and after the global financial crisis came to a head in mid-September, and that "Petrobras won't have problems. There will be generous sources, whether domestic or foreign."

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

MMS chief hopes next president, Congress won't reinstate OCS bans

12/19/2008 US Minerals Management Service Director Randall B. Luthi said on Dec. 9 that he hopes the Obama administration and Congress seriously consider expa...

FERC issues final EIS for proposed LNG project near Baltimore

12/19/2008 The Federal Energy Regulatory Commission's staff identified additional adverse environmental impacts as it issued a final environmental impact stat...

Gran Tierra defers Colombian pipeline project

12/17/2008 Gran Tierra Energy Inc., Calgary, has deferred a 100-km pipeline project in Colombia connecting Costayaco field to the Orito gathering facilities.

CCS ends purchase of Newpark Environmental Services after FTC sues

12/12/2008 Newpark Resources Inc. and CCS Inc. agreed on Nov. 24 to cancel the proposed sale of Newpark's US environmental services business to CCS. The Feder...

PetroSA awards contract for South African refinery

12/08/2008 PetroSA has let a feasibility and front-end engineering and design contract to KBR for its 400,000 b/d refinery in the Coega industrial development...

MMS begins preparation process for 2011 lease sale off Virginia

11/28/2008 The US Minerals Management Service took the first step on Nov. 12 toward holding an offshore oil and gas lease sale off Virginia in 2011.

Sakhalin-2 set to deliver LNG in February

11/25/2008 The Sakhalin-2 project is expected to begin deliveries of LNG to Japan on Feb. 19, 2009, according to an executive of the Sakhalin Energy Investmen...

Myanmar awards China pipeline rights

11/20/2008 Myanmar has awarded China the right to manage planned pipelines that will transport crude oil and natural gas from the Bay of Bengal across Myanmar...

Vaalco restarts production off Gabon

11/11/2008 Vaalco Energy has successfully upgraded its FPSO vessel off Gabon and restored production from its oil fields sooner than expected.

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected