Eric Watkins
Oil Diplomacy Editor
LOS ANGELES, Jan. 27 -- Venezuela has denied any rift with Brazil over the construction, operation, or supply of the Abreu e Lima refinery in Pernambuco state, a project 60% owned by Petroleo Brasileiro SA (Petrobras) and 40% by Petroleos de Venezuela SA.
Rafael Ramirez, Venezuela's oil minister, said there has been no conflict with Brazil regarding the refinery project despite earlier statements by Petrobras downstream director Paulo Roberto Costa (OGJ Online, Jan. 22, 2009).
Ramirez, who called Costa's comments "the opinion of a low-level official," said Venezuela has not been notified of any changes to the project.
The refinery is expected to start processing 200,000 b/d of oil, half from Venezuela and half from Brazil, by 2010, but Costa last week said the two countries have disagreed on the price of the heavy Venezuelan crude that would supply the refinery.
The reports from Venezuela coincided with news Petrobras has authorized phase two in the construction of the Abreu e Lima refinery, calling for construction of the facility's 150-Mw electric power plant at a cost of $408.2 million.
Meanwhile, dismissing concerns over the global financial crisis, Costa confirmed that the Abreu e Lima refinery is just one of several facilities that Petrobras will bring onstream in the near future.
"I'm happy every time I hear of refinery investments being postponed around the world. I want them all to be postponed. The world will continue to exist," Costa said. "It is hard to believe the world will be in a recession until 2013. It doesn't make much sense."
Costa noted Petrobras doesn't want to be an exporter of oil, but an exporter of products. "There's a world diesel shortage," he said, adding, "It is short-sighted to think there won't be market for this supply."
Costa also said $2 billion should be added to Petrobras's investments in refineries, to adapt them for the production of low-sulfur diesel.
Costas named the new refineries as the 230,000 b/d Abreu e Lima facility, the 150,000 b/d Comperj facility, the 600,000 b/d Premium I facility in Maranhao, the 300,000 b/d Premium II facility in Ceara, and the 30,000 b/d unit in Rio Grande do Norte.
Contact Eric Watkins at [email protected].
