Mexico



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Petrobras gets China's $14 billion bail out in refinery flop

Dado Galdieri

Petrobras's Comperj oil refinery Itaborai, Brazil. CNPC expands partnership to include graft-hit Comperj project. Petrobras and CNPC are already partners at offshore fields.

By Sabrina Valle

RIO DE JANEIRO
Petroleumworld 07 05 2018

China National Petroleum Corp plans to help complete a refinery in Rio de Janeiro that already cost Brazil's state-controlled oil company Petrobras $14 billion before it was halted amid a widespread graft investigation.

CNPC, as the Chinese producer is known, signed a letter of intent adding the Comperj refinery to a partnership the two companies signed last year. The agreement also includes evaluating investments in some of Brazil's largest legacy fields at the offshore Marlim cluster.

The multi-billion dollar petrochemical and refinery project dates back to 2004 and the original plans were for seven plants and more than 100,000 jobs. It was suspended in 2015 amid the corruption investigation known as Carwash. Petroleo Brasileiro SA , as the Brazilian company is formally known, abandoned the petrochemical unit in 2015 amid a series of writedowns, and has been seeking a partner to conclude one of the two planned refineries.

Petrobras' non-binding agreement with CNPC comes a day after a major setback to a separate plan to divest refining assets. Petrobras has temporarily suspended the sale of four refineries and associated infrastructure after Supreme Court Justice Ricardo Lewandowski ruled that state-controlled companies need congressional approval for any privatizations.

Petrobras controls 99 percent of Brazil's refining capacity, and is also selling assets ranging from pipelines to biofuel plants.

Graft Magnet

Comperj became a symbol of pervasive corruption at Brazil's state-run oil producer after the Carwash probe showed that contracts were rigged by a cartel of 16 engineering and construction conglomerates.

At Comperj, contractors were accused of inflating expenses to boost illicit gains, after bribing Petrobras executives to win the original contracts. In 2016, Petrobras said at least $2 billion were needed to finish a 165,000-barrel-a-day refinery train that was 80 percent complete.

Petrobras and CNPC are also partners at the offshore Libra field, considered Brazil's largest oil discovery.

________________________

Twitter: @petroleumworld1

Petroleumworld.com

Hit your target - Advertise with Us


Story by Sabrina Valle from Bloomberg


bloomberg.com 07 04 2018

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1

November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld   / Elio Ohep - All rights reservedThis site is a public free site and it 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 business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. 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, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.