IPC: Petrobras president charts near-term future for country's pipelines

Petroleo Brasileiro SA expects to invest more than $2.5 billion by 2005 in new pipelines, said Francisco Gros, Petrobras president and chief executive officer.

Oct. 2, 2002

2 min read

Warren R. True
Chief Technology Editor—Pipelines/Gas Processing

CALGARY, Oct. 2 -- Petroleo Brasileiro SA expects to invest more than $2.5 billion by 2005 in new pipelines, said Francisco Gros, Petrobras president and chief executive officer, speaking Tuesday to more than 900 attendees of the International Pipeline Conference & Exposition in Calgary.

Under a program called PEGASO, a Portuguese acronym for "Excellence in Environmental Management and Operational Safety Program," the company has already invested $800 million, of which $400 million was for improvement of pipeline activities in the company, and another $300 million was invested in pipeline integrity. By June 2003, an additional $1.3 billion will be invested.

The integrity program has inspected more than 4,700 km of pipelines, he said, since Jan. 1, eliminating 5,200 defects and rehabilitating more than 3,300 km of pipelines. In addition, 245 km of line pipe was replaced.

With the opening of the Brazilian oil and gas markets to competition, Gros said Petrobras created Transpetro, a new subsidiary to operate and build pipelines, an independent service for the entire Brazilian market.

Gros also said Petrobras has been investing in automation to be able to operate its pipeline network at Transpetro headquarters control center in Rio de Janeiro.

"This program brings our operation to international standards of safety and efficiency," he said.
At present, 70% of the oil and gas pipeline network is remotely operated, and Transpetro intends to conclude this program by late 2003.

The Brazilian pipeline transportation system, said Gros, is more than 20,000 km long and should reach 25,000 km by 2005. New oil, gas, and refined product lines will be built as part of that expansion.