1001-Refining Opportunities in Brazil

8/3/2019 1001-Refining Opportunities in Brazil

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JANUARY 2010

REFINING OPPORTUNITIES IN BRAZIL


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PETROBRAS Business Plan 2009-2013 has established the following oilproduction targets in Brazil: 2,680 thousand barrels of oil per day (bpd) in 2013,3,340 thousand bpd in 2015 and 3,920 thousand bpd in 2020.

In addition to the Tupi Pilot System, to begin production in 2010, three systems

are scheduled to go into production in the pre-salt layer of the Santos Basinduring the period 2009-2013: Tupi 1 and Guar 1 in 2012 and Lara 1 in 2013. The2015 production target in the 2008-12 Business Plan of 2,812 thousand bpd hasbeen increased by 528 thousand bpd as a result of these additional productionprojects.


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Including natural gas production,domestic output will reach 3,310thousand barrels of oil equivalent perday (boed) in 2013, 4,140 thousand boed

in 2015 (685 thousand boed more thanfor the 2008-12 Business Plan) and 5,100thousand boed in 2020. In refining, thetarget for domestically raw material in2013 is forecast to reach 2,270 thousand

bpd.

Petrobras reiterates the strategy of increasing refining capacity both in Braziland overseas to follow Petrobras production growth and to meet the levels ofproduct quality demanded by the market. In this context, Refinaria Abreu Lima(Pernambuco) is expected to start up in 2011, the COMPERJ in 2012 and theRefineries Premium I and II in 2013 and 2014, respectively.


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REFINERIES IN THE SOUTHEAST


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Refinery Location Capacity (bpd) Output Operation Status

REPLAN Paulnia (SP) Expanding from

365.000 to

398.000

Diesel, gasoline,

LPG, naphtha,

aviation kerosene,

coke and asphalt.

In Operation Expansion

Project (2009-

2013)

REVAP So Jos dos

Campos (SP)

251.000 Gasoline, diesel,

aviation kerosene,

LPG, asphalt andsulfur.


Project

RPBC Cubato (SP) 170.000 Green diesel,

Aviation, Podium and

Formula 1 gasoline

and coke.

In Operation Under

Expansion

(September

2009)

RECAP Mau (SP) 53.000 Propylene, LPG,

gasoline, diesel and

special solvents


Project

(2010)



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COMPERJ Itabora (RJ) 150.000 (UPB) Diesel, ethylene,

propylene, benzene,

paraxylene, butadiene,

polyethylene,

polypropylene, PET,

PTA, ethylene glycol,

styrene.

2012 Under

Construction

REDUC Duque de

Caxias (RJ)

242.000 lubricants, gasoline,

diesel, aviation

kerosene, LPG, and

naphtha.


Project

REGAP Betim (MG) 151.000 Gasoline, diesel,

aviation kerosene,LPG, naphtha, asphalt,

coke and sulfur

2010 Under

Expansion


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REFINERIES IN THE NORTHEAST


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Abreu Lima Suape (PE) 230.000 LPG, naphtha,

Diesel, Fuel Oil,

Coke, Sulfur and

Sulfuric Acid.

2011 Under

Construction

RLAM So Francisco

do Conde (BA)

323.000 Propane, propene,

iso-butane,

cooking gas,

gasoline, naphtha,

kerosene, aviation

kerosene, paraffin,

fuel and asphalt.


Project

(2011)

LUBNOR Fortaleza (CE) 7.000 Asphalt, lubricating

oil, natural gas,

ship fuel oil,

cooking gas and

fiber softener oil.


Project


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Premium I So Lus (MA) 600.000 Diesel, aviation

kerosene, LPG,Naphtha, Coke.

2013/2015 Construction

Project

Premium II Pecm (CE) 300.000 Diesel, aviation

kerosene, LPG,

Naphtha, Coke.

2013/2015 Construction

Project

Clara Camaro Rio Grande do

Norte

25.000 Diesel, Gasoline,

aviation kerosene

and LPG

2010 Construction

Project


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REFINERIES IN THE NORTH


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REFINERIES IN THE NORTH


REMAN Manaus (AM) 46.000 LPG, naphtha,

gasoline, aviation

kerosene, diesel,

fuel oil, electric

turbine light oil,

energy generation

oil, asphalt.

In Operation Under

Expansion

(2011)


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REFINERIES IN THE SOUTH


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REFINERIES IN THE SOUTH


REPAR Araucria (PR) 189.000 LPG, gasoline,

diesel, gasoline,aviation kerosene,

asphalt and

naphtha.

In Operation Under

Expansion

REFAP Canoas (RS) 189.000 Diesel, naphtha,

gasoline, LPG,aviation kerosene,

vessel bunkers,

kerosene, solvents

and asphalt


Concluded


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REFINERIES OPPORTUNITY

Private international player tobecome partner, supplier, and off-

taker.

Below you will see an example ofhow a partnership with Petrobras inthe refining sector could look like.


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PREMIUM REFINERY I

Private international playermay become partner

REPLACING MARUBENI,supplier, contractor, andexclusive (along withPetrobras) long-term off takerof GPC or Calcined Coke.


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PETROCHEMICALS I - COMPERJ


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COMPERJ COMPOSED OF SIX COMPANIES

Private international player may becomepartner REPLACING MARUBENI, supplier,contractor, and exclusive (along with

Petrobras) long-term off taker of GPC orCalcined Coke.

Productioncompany of basicpetrochemicals

Production companyof PTA/PET (purified

terephthalicacid/polyethylene

terephthalate)

Productioncompany of

styrene

Productioncompany of

ethylene glycoland ethanol oxide

Productioncompany ofpolyolefins


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PETROCHEMICALS I COMPERJ

This ranking must take into account these three factors:

1. Capital Capacity to bring the capital necessary to support the equity assumed;

2. Technology The partner may be in the sector and if it has technology to add, thiswill be better; and

3. Offtaker The partner will assume a portion of the offtaker (in the range of 20%).

Proposals of interested company shall be

part of a ranking to choose the best partners.

Petrobras will be responsible for the supplycontract for raw materials.

Private international player to becomepartner, supplier, and off-taker

OPPORTUNITY


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PETROCHEMICALS II COMPLEXO PETROQUIMICA SUAPECITEPE-SUAPE

Markets previous evaluations showed the high attractiveness of the business,with the domestic demand grows at a rate of 8% py.

The site selected for the plants, next to the installations of Abreu Lima Refinery

in the Suape Port, perfectly meets the needs of low infrastructure and logisticscosts.

Total investment estimated is around US$ 715 million, including technology,equipment and accessories, domestic or imported, contingencies and workingcapital and pre-operational costs.

CITEPE Two plants of polyester in the SuapePort (Pernambuco). The first one will produce

four different polyester yarns: 86 kt/year ofPOY, 85 kt/year of textured POY, 14 kt/year ofFDY, and 55 kt/year of filament chips and thesecond, 450 kt/year of PET bottle grade.


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PETROCHEMICALS II CITEPE-SUAPE

Private international player may

become partner in the holdingcompany (up to 80%), supplier ofPX and/or long-term off taker ofPET BG and along with Petrobraslong-term off taker of projects

output.

OPPORTUNITY


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PETROCHEMICALS III COKE COQUEPAR

Coquepar got the previous environmental license, an essential requirement tostart procedures to raise funds for short and long term financing conditions

before to Banco Nacional de Desenvolvimento - BNDES, aim agencies andcommercial banks. In addition, Coquepar calcining technology has been selectedwhose contract must be signed in the first semester of 2009. Building term of thefirst plant is assessed to be concluded in twenty two months followed by a six-month difference to start building the second plant. First plant start-up is

predicted on first quarter of 2011.

On November 2008, Coquepar andPetrobras entered into a preliminarypurchase and sale green petroleum coke(GPC) agreement to supply its twocalcining plants. A Coquepar is movingforward with negotiations of offtakeagreements with important players in theCPC market. Our client could become amajor off-taker.


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PETROCHEMICALS III COKE COQUEPAR

The opportunity for a foreign investor such as our client would be:

1. The purchase of the participation interests of Brazil Energy and Unimetal;

2. The purchase of 10% out of the 40% equity stake currently held byPetroquisa, subsidiary of Petrobras;

3. The entering into long-term (25 years) offtake agreements of CPC fromCoquepar;

4. The allocation to Mubadala or IPIC of long-term CVP offtakes from Petrobrasrefineries.

COQUEPARs project involves US$ 475 millioninvestment. Project development and company

administrative structure have being fullysupported by the shareholders. Pre-implementingexpenses should be held by the revenue earning,according to predicted technical and economicviability study (EVTE) for the calcining plants.


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PETROCHEMICALS III COKE - COQUEPAR

Private international player maypurchase up to 70% of COQUEPAR,and be the exclusive (along withPetrobras) long-term off taker ofprojects output.

OPPORTUNITY


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Av. Rio Branco 89, 28th floorManhattan Tower+ 55.21.3554.7860

Heller Redo Barroso

[email protected].: + 55.21.8103.4004

www.hrblaw.com.br

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1001-Refining Opportunities in Brazil