Petrobras lets Brazilian refinery contract to Skanska

Petroleo Brasileiro SA (Petrobras) awarded a $125 million contract to Skanska AB, Sweden, to build a sulfur recovery unit (SRU) and a tail gas treatment unit (TGTU) at its 47,000 b/d Capuava refinery in Sao Paulo, Brazil.

Sep 30th, 2008

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Sept. 30 -- Petroleo Brasileiro SA (Petrobras) awarded a $125 million contract to Skanska AB, Sweden, to build a sulfur recovery unit (SRU) and a tail gas treatment unit (TGTU) at its 47,000 b/d Capuava refinery in Sao Paulo, Brazil.

Under the project, which is part of a nationwide environmental program to reduce sulfur contaminants in petroleum byproducts, the SRU facility will have a capacity to recover 20 tonnes/day of sulfur, while the TGTU will clean 40 tonnes/day of tail gas.

The scope of the contract includes detailed engineering, purchasing, construction, electromechanical installations, and assistance with commissioning and start-up of the plant.

Work will begin in October, and is scheduled for completion within 24 months. The total contract value is $125 million, with Skanska's share 40% or $50 million. Skanska's partner in the consortium is Brazilian engineering firm Promon.

Contact Eric Watkins at hippalus@yahoo.com.

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