Oliver L Campbell : Investment in
the Abreu y Lima refinery is a mistake
A news item from Reuters dated July 13 and entitled " PDVSA balks at high costs of Petrobras Pernambuco Refinery" states the original cost was estimated at $4.5 billion. In fact, as quoted in my article of 11.09.10, it started at $2.0 billion --then increased to $4.5 billion, subsequently shot up to $12.0 billion and has now further increased to $14,4 billion. This must make it the world's most expensive refinery in terms of rated refinery capacity--230,000 barrels per day.
As I explained previously, it makes no commercial sense for PDVSA to invest in a refinery in Brazil. The money would be much better spent constructing refineries in Venezuela with deep conversion capacity to process the extra-heavy crudes from the Orinoco Oil Belt. The best thing PDVSA can do is to tell Petrobras a cost of $14.4 billion is exorbitant and that it will not invest in the project. The Brazilian Mines and Energy Minister has stated their government could build the refinery on its own if need be. Fine, let them go ahead and do just that.
Follow us and post your comments: in Twitter Facebook
Oliver L Campbell , MBA, DipM, FCCA, ACMA, MCIM was born in El Callao in 1931 where his father worked in the gold mining industry. He spent the WWII years in England, returning to Venezuela in 1953 to work with Shell de Venezuela (CSV), later as Finance Coordinator at Petroleos de Venezuela (PDVSA). In 1982 he returned to the UK with his family and retired early in 2002. Petroleumworld does not necessarily share these views.
Editor's Note: All comments posted and published on Petroleumworld, do not reflect either for or against the opinion expressed in the comment as an endorsement of Petroleumworld. All comments expressed are private comments and do not necessary reflect the view of this website. All comments are posted and published without liability to Petroleumworld,
Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of environmental and humanitarian significance. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml.
All works published by Petroleumworld are in accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.Petroleumworld has no affiliation whatsoever with the originator of this article nor is Petroleumworld endorsed or sponsored by the originator.
Petroleumworld encourages persons to reproduce, reprint, or broadcast Petroleumworld articles provided that any such reproduction identify the original source, http://www.petroleumworld.com or else and it is done within the fair use as provided for in section 107 of the US Copyright Law.
If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. Internet web links to http://www.petroleumworld.com are appreciated.
Petroleumworld News 07/15/2011
Follow us in Twitter
And post your comments in our Facebook site
Petroleumworld welcomes your feedback
and comments, share your thoughts on this article,
your feedback is important to us!
We invite all our readers to share with us their views and
comments about this article, write to email@example.com
Copyright© 1999-2010 Petroleumworld or respective author or news agency. All rights reserved.
We welcome the use of Petroleumworld™ stories by anyone provided it mentions Petroleumworld.com as the source.Other stories you have to get authorization by its authors
Send this story to a friend Any question or suggestions,
please write to: firstname.lastname@example.org
Best Viewed with IE 5.01+Windows NT 4.0, '95, '98, ME,
XP, Vista, W7 +/ 800x600 pixels