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Update 3 – Petrobras Pernambuco Refinery-PDVSA Upgrader JV

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This topic contains 6 replies, has 3 voices, and was last updated by  Charles Randall 13 years, 6 months ago.

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  • #3847

    Charles Randall

    Venezuela, Brazil to jointly operate refinery
    By IANS
    Friday December 14, 04:24 PM
    Caracas, Dec 14 (IANS) Venezuelan President Hugo Chavez and his Brazilian counterpart Luiz Inacio Lula da Silva have agreed to jointly build and operate a refinery in northeastern Brazil as part of bilateral energy cooperation.
    PDVSA of Venezuela and Petrobras of Brazil will create a ‘mixed enterprise’ to construct a refinery in the Pernambuco region with the capacity to process 200,000 barrels of crude oil per day, EFE news agency quoted Chavez as saying Thursday.
    The accord also includes a commitment by Caracas to supply Brazil 100,000 bpd (barrels per day) of crude oil from a field in Venezuela’s Orinoco belt that is operated jointly by PDVSA and Petrobras, he added.
    Petrobras began work on the $4-billion refinery project in Pernambuco on Sep 4.
    Venezuela, a founding member of the Organisation of Petroleum Exporting Countries (OPEC), is among the world’s top exporters of crude oil. The Andean nation also has large reserves of natural gas.

  • #7137

    Charles Randall

    Here is recent update on the Petrobras Pernambuco Refinery linked to PDVSA Upgrader JV.
    This version has Venezuela & Brazil back in lockstep on operating the Refinery / Upgrader sourcing heavy crude to the new JV refinery. <Petrobras was originally (still?) to have 60% & PDVSA 40% in the 200MBD Refinery> 
    The last update article (see / Refinery – Brazil begins work on new Refinery ~Sept 2007) had Brazil going ahead with Grassroots Refinery (& coker) to make the 2010 target after they became fed up by problems dealing with PDVSA (coruption, endless negotiating ect). PDVSA wasnt eleminated but Petrobras wasnt waiting – looks like the strategy paid off for them.  <Note Half the crude supply was always to come from Brazil offshore heavy crude sources and half from the Venezuela Orinoco – Carabobo I field (Upgrader). This makes it a stronger sourcing position for the Brazil Upgrader JV than perhaps PDVSA previous US JV partners? >
    Charlie Randall

  • #7058

    Charles Randall

    Rumor has it that PDVSA is going to take control of petcoke & review contracts that were in place with original US JV partners. Would fit profile on what has occured thus far in not honoring contracts & belief they would be able to take over end user supply contracts Koch, SSM (now part Oxbow), Oxbow, ect put in place for them & probably try to get additional price increase based on todays market vs price formulas put in place back 2001-2004.
    Guaranteed to be screw up – PDVSA doesnt understand customers view, detailed logistics nor long term contract (especially hononring them) perspectives in Petcoke markets.
    Currently one best JV (Sincor) petcoke storage & handling terminals has been underperforming since 4Q07. Some petcoke handling terminal operations was tied to JV partner or Petcoke contract partner so look for problems in this area as side effect of these PDVSA changes.

  • #6319


    Brazil ready to build refinery minus Venezuela aid
    Wed Jan 21,2009 12:44 pm ET

    BRASILIA, BrazilAn executive with Brazil’s state oil company says his country is prepared to build a $4.1 billion refinery without Venezuela’s financial participation or oil supplies.
    Paulo Roberto Costa is downstream director for Petroleo Brasileiro SA. He says Brazil and Venezuela are at odds over the price of the Venezuelan heavy crude that would go to the refinery in northeastern Brazil.
    Costa told reporters Wednesday that Brazil can supply all the oil the refinery needs. He also says that Brazil doesn’t need the 40 percent of funding that Venezuela’s Petroleos de Venezuela SA was set to provide for refinery construction.
    The project is a favorite of Venezuelan President Hugo Chavez. PVDSA had no immediate comment

  • #6318

    Charles Randall

    Here is update on the New Brazil Grassroots Brazil Northern refinery that was to be PDVSA jv and use 50% crude from a new PDVSA upgrader …… Petrobras has said all along they were ready to go this along & have not stood for any usual Venezuelan corruption (payoffs for deals to proceed) or government foot dragging. More so since the additional Brazil new Tupris crude field discoveries.
    Not stated but assume Chavez/PDVSA are having hard time adjusting to new world prices in the $35-60/Bbl range since they need $80-90/Bbl to keep funding government programs (just like Russia & Iran) – even without all checkbook diplomacy project funding.
    Think Brazil is going to be welcome relief on crude supply to US & World crude import markets.

  • #6063


    You should see the mountains of coke at the Jose Complex. PDVSA isan’t moving any coke. It has been piling up. Not to mention that all the upgraders are screwed up beyond belief! I know, I work there!!!

  • #6062


    Tell them to send some more guys to the Conference in Rio on August 4th. It is for all of Latin America and the world. There’s going to be a huge group from all across Petrobras. Petrobras will be giving 5 presentations as well as presentations from Esso Argentina, ExxonMobil USA and various top level supplier and EPC papers. Petronas is coming from Malaysia to give a presentation. There will be translators for Spanish, Portuguese and English so anyone can participate.

    Have your guys participate in the discussion groups. There is SO MUCH they can learn.

    Get the details at

    Paul Orlowski Inc

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