To Adapt and Modernize the Paulínia Refinery, Petrobras Opens Bidding Process for Equipment

The Largest Refinery of Petrobras, REPLAN, in the State of São Paulo, May Receive Highly Modernized Equipment

In a note published to the market today (06/28), Petrobras informed about the process of international bidding, in the EPC (engineering, procurement, and construction) modality, for the implementation of a new diesel hydrotreating unit and the necessary auxiliary systems, aiming at the adaptation and modernization of the refining park of the Paulínia Refinery (Replan) in the state of São Paulo. See also: Sale of Petrobras Refinery in Bahia Authorized by TCU, According to Minister of MME

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New Equipment to Be Installed at the Refinery in São Paulo

With this bidding project opened by Petrobras, the Paulínia Refinery will be capable of producing 100% low-sulfur diesel oil (S-10) and increasing the production of aviation kerosene (QAV), aiming to meet the specifications and quantities demanded by the future market, economically, safely, and with lower environmental impacts.

The new diesel hydrotreating unit at Petrobras’ refinery in São Paulo will have a production capacity of 10,000 m³/day of Diesel S-10, and its operation is expected to begin in 2025, in line with the Strategic Plan 2021-2025. The Paulínia refinery is one of the units that is not part of the divestment plan.

REPLAN: Inaugurated in May 1972, REPLAN is the largest refinery in Brazil in processing capacity, with a throughput of 69,000 m³/day of crude oil (equivalent to 434,000 bbl/day), located in the city of Paulínia-SP, 118 km from São Paulo.

Petrobras to Invest About US$ 300 Million by 2025 in Refineries That Will Not Be Sold

Petrobras announced that it plans to invest around US$ 300 million in the refineries that are not on the divestment agenda. The state-owned company made the announcement on May 24, and the investments aim to increase the efficiency and performance of the assets. The Petrobras refineries that will receive the investments are Presidente Bernardes, Duque de Caxias, Capuava, Paulínia, and Henrique Lage, all located in the states of São Paulo and Rio de Janeiro.

Petrobras announced a program called RefTOP – World-Class Refining, which aims to be among the best oil refineries in the world. This program is part of Petrobras’ Strategic Plan 2021-2025, with an investment of US$ 3.7 billion, of which US$ 300 million will be allocated to the refineries.

See Also: Petrobras Says New Competitors in Oil Refineries May Help Reduce Prices for Consumers

During the Labor, Administration, and Public Service Commission in the Chamber of Deputies, the president of Petrobras stated that new competitors in the oil refinery sector may reduce fuel prices for consumers. The state-owned company decided to sell eight refineries, among other assets, to raise cash and reduce its debt, which ended the year 2020 at US$ 75.5 billion.

The president of Petrobras, General Joaquim Silva e Luna, stated that the company remains aligned with the PPI (Import Parity Price) as a way to maintain its attractiveness in the fuel market. In addition to the general, the pricing policy was also defended by the management of Roberto Castello Branco, who was dismissed by President Jair Bolsonaro (without party) in February 2021. The dismissal occurred after successive increases in fuel prices.