Petrobras to Spend US$1.63bn on Campos Development

Brazil's federal energy company Petrobras will spend 4.65bn reais (US$1.63bn) on its Campos basin transport and treatment master plan (PDET), the company said in a statement late Wednesday.

PDET will link the P-40 platform and the P-50, P-51, P-52, P-53, P-55 and Roncador 4 planned platforms to the Duque de Caxias (Reduc) refinery in Rio de Janeiro state, the Gabriel Passos (Regap) refinery in Minas Gerais state, as well as the Revap, RPBC, Recap and Replan refineries in Sao Paulo state.

The aim is to reorganize transport so that 40% of Campos oil will flow through pipelines and 60% will be shipped in tankers, reducing costs and making production feasible. Petrobras currently transports 80% of Campos oil production in ships and 20% through pipelines. Production was 1.25 million barrels a day (mb/d) in 2003.

The company plans to build 113km of 34-inch diameter underwater pipelines linking a pumping platform and a floating storage and offloading (FSO) ship to the mainland. Once onshore, 610km of pipes will link Quissama on the Rio de Janeiro coast to Guararema in Sao Paulo state, from where the oil will be dispatched to Minas Gerais state through existing lines.

The announcement was made after a meeting of Petrobras board members, Rio de Janeiro state governor Rosinha Garotinho and other government officials.

Rio de Janeiro state has been trying to block the construction of the pipeline, claiming that it would remove the state from a list of possible locations for a new refinery that Petrobras plans to build. Deciding where to build the new refinery is not related to the oil transport plan, the statement said.

Petrobras plans to present the plan to more state and city government officials, businessmen, politicians and local communities over the next two months. The company plans to lay the new pipeline next to existing pipelines and at 8 meters below riverbeds to reduce environmental impact. PDET will increase Petrobras's royalty payments to Rio de Janeiro state by 136mn reais, creating 34,000 new jobs, 3,750 of which will permanent operational posts.

The master plan is part of total Petrobras investments of 45bn reais in Rio de Janeiro state, which include gas pipeline and related infrastructure, as well as the construction of thermoelectric power projects TermoRio and Termo Norte-Fluminense.

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