new-petrobras

New Braskem: a Brazilian Petrochemical Giant Is Born

Petrobras and Odebrecht, two Brazilian companies announced the purchase of Unipar's share of the Quattor petrochemical company and its incorporation into the competing enterprise Braskem, resulting in the creation of the Americas' largest company in the industry in terms of thermoplastic resin production capacity, according to a press release issued by Petrobras.

Petrobras is a partner of Braskem, a company controlled by Odebrecht, and of Quattor, of which Unipar was the majority stakeholder up until now.

The shareholders' agreement signed by Petroquisa (Petrobras' oil industry subsidiary), Odebrecht, Braskem and Unipar provides for an increase in Petrobras' stake in Braskem, and the petrochemical company's capital will receive an additional 4.5 billion to 5 billion Brazilian reais (US$ 2.5 billion to US$ 2.8 billion). The proposal had been under negotiation for months, but there was a divergence among Unipar stakeholders concerning the sale.

Another agreement signed by Petrobras and Odebrecht provides for shared decision-making at Braskem, which will now have a near-monopoly over the Brazilian petrochemical industry. The agreement establishes 50.1% of the voting capital to Odebrecht.

In order to make the deal viable, Petrobras and Odebrecht are going to establish a holding company named BRK Investimentos Petroquimicos, which will hold all of the Braskem shares owned by the two; BRK will receive 2.5 billion reais (US$ 1.4 billion) from Petrobras and 1 billion reais (US$ 558.5 million) from Odebrecht.

"Thus, Petrobras will concentrate its investment in the petrochemical industry, including its share of Quattor, into a company that will have greater competitive advantages on a global scale. The company will also have a guarantee of stake ownership in this new company, to be shared with Odebrecht," according to the press release issued by Petrobras.

Petrobras, Odebrecht and Braskem have signed another agreement concerning management and ownership of the Petrochemical Complex of the State of Rio de Janeiro (Comperj) and of the Suape Petrochemical Complex, in the state of Pernambuco, both of which are being built by Petrobras. After all operations are concluded, Braskem will have 26 petrochemical plants.

Hydrocarbon Discovery

OGX announced January 22 that it has found hydrocarbons in the albian section (the layer of soil formed between 112 million and 99.6 million years ago) of well 1-OGX-5-RJS, located in block BM-C-43, in shallow waters in the southern part of Campos Basin close to Rio de Janeiro.

The company identified a 130-meter column of oil, with net pay of around 30 meters in carbonate reservoirs. OGX should continue drilling this well up to its total estimated depth, of 4,300 meters.

"These initial results from well OGX-5 are very encouraging, as they confirm that the high-quality carbonate reservoirs detected in wells OGX-2 and OGX-3 are also present in the southern reaches of our blocks", commented Paulo Mendonca, OGX's general executive officer.

OGX is the largest Brazilian private company in the sector of oil and natural gas in terms of maritime exploration area. The company has 100% participation in block BM-C-43. Well OGX-5 is located some 79 kilometers away from the coast of the state of Rio de Janeiro, at water depths of approximately 150 meters.

Poor Quality

Brazil's regulatory body for the fuels sector, National Agency for Petroleum, Natural Gas and Biofuels (ANP) has issued warnings to 31 ethanol distributors in the state of Sao Paulo since the beginning of the year. According to a note from ANP, the problem is "Irregularities in the quality of the ethanol they are transporting."

ANP inspectors examined 253 trucks transporting ethanol in the Ribeirao Preto, Sao Jose do Rio Preto, Sorocaba, Paulinia and Sao Jose dos Campos areas of the state. Six samples were collected for laboratory analysis.

The distributors, after an administrative process, can be fined from 5,000 reais to 5 million reais (US$ 2,743 to US$ 2.7 million)

According to ANP, in 2009 they made 6,373 inspections in the state of Sao Paulo, which resulted in 1,964 warnings and 221 interdictions. ANP did not release data on fines.
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Braskem acquires Quattor and prepares for international expansion

The integration will allow the company to be more competitive globally and consolidate its presence in the Americas
Braskem announces the completion of negotiations for the acquisition of Quattor through an Investment Agreement signed today between Odebrecht, Petrobras, Braskem and Unipar. The agreement will allow Petrobras to consolidate its main petrochemical assets in Braskem, which will remain as a private company publicly traded and expand its ability to compete globally.

The consolidation of the assets to Braskem will position as the largest company in the Americas in the capacity of thermoplastic resins (PE, PP and PVC), placing it in a new level of scale and efficiency to meet the challenges of the international market. Listed on 3 bags (BM & FBovespa, and NYSE) stock exchanges, the company is to have annual revenues from $ 26 billion. With integration between 1st and 2nd generation petrochemicals, its 26 plants located in five states (Sao Paulo, Rio de Janeiro, Rio Grande do Sul, Bahia and Alagoas), will have capacity to process 5.5 million metric tons of resins.

"The establishment of the first and second generation petrochemical companies, which are capital intensive, creates the conditions for the Brazilian player that is one of the global industries most challenging and competitive market for thermoplastic resins. Furthermore, it allows the necessary investments to monitor the growth of national economy, "says Bernardo Gradin, president of Braskem. "The creation of a company with global business and vocation is in line with the growing role of Brazil in the international market," he adds.

The transaction is valued at $ 700 million, including the figures for the acquisition of companies and Polibutenos Unipar Commercial Braskem, which will also take commitments Unipar next to BNDESPar.

Additionally, an association agreement signed between Petrobras, Odebrecht, Braskem Braskem gives the right of first refusal to participate as a member of the projects Petrochemical Complex of Rio de Janeiro - Comperj - and Petrochemical Complex of Suape in Pernambuco. These projects, already underway, will increase in a significant supply of basic petrochemicals in the country, and the resin.

Among the steps of the operation are provided: (1) the creation of a holding company in which Odebrecht and Petrobras transferred their actions and realize capitalization of U.S. $ 3.5 billion, (2) followed by a capital increase at a Braskem value between $ 4.5 and $ 5 billion by the current shareholders of Braskem and Petrobras and Odebrecht to take part, through the holding company created with the $ 3.5 billion it contributed in step (1), (3 ) acquisition by Braskem shares of Quattor held by Unipar and other shares of Unipar, (4) the incorporation by Braskem shares of Quattor owned by Petrobras.

The capital increase will strengthen the company's structure allowing greater financial flexibility to continue its program of investment and internationalization.

The president of Braskem, the integration of modern plants, competitive and complementary geographic diversification (units in five states) and raw materials (naphtha, ethane, propane, HLR, propylene refinery and ethanol), Braskem will have won of scale, flexibility and operational efficiency.

The Investment Agreement will be referred to the assessment of CADE, the Administrative Council for Economic Defense, with the offer of a voluntary agreement for the reversibility of Operation - APRO.

Gradin said that Braskem will continue its internationalization project, combining vocation for growth with the capacity to invest and compete globally. "We will have a positive impact on the close relationship with our customers through greater integration in the supply chain, access to services of high added value, innovative and consistent investments in research and development."

The company will maintain the highest standards of corporate governance prevailing in the international market, based on: transparency and independence of executive management; search for consistent results for shareholders; commitment to improving the competitiveness of the productive chain and the promotion of sustainable development .

Quattor is a product of the union between UNIPAR (60%) and Petrobras (40%). A large company that will grow further with the integration of , , UNIPAR - Divisão Química/UDQ -, / Riopol, Nova Petroquímica (formerly Suzano Petroquímica).

Quattor’s, established in June, 2008, caused great repercussion in the market because it brought more competition to the petrochemical sector. The first and second generation integrated production chains involve the production of basic petrochemicals (ethylene, propylene, and etc.) and thermoplastic resins (polyethylene and polypropylene), which allows Quattor to offer a complete product portfolio.

Foster Wheeler signs Petrobras Linhares Fertilizer and Chemicals
Petrobras to build $3 billion Gas-to-Chemicals complex

Petróleo Brasileiro S.A. (Petrobras) from Brazil selected Foster Wheeler AG from Switzerland for a greenfield world-scale Gas-to-Chemical complex to be built at Linhares, in Esperito Santo State, southeast Brazil.

Estimated around $3 billion capital expenditure, the Linhares Gas-to-Chemical complex is identified as UFN-IV, standing for the Unit of Nitrogen Fertilizer N°4, as part of Petrobras program to reduce Brazil reliance on fertilizer imports.

In its business plan 2012 – 2016, Petrobras will invest $13.5 billion in gas and energy from which 42% will be dedicated to fertilizer.

This business plan is to solve two issues:

- The massive development of the offshore oil production is generating high quantities of associated gas to be monetized
- Brazil imports more than half of its nitrogen fertilizer.

Therefore, Petrobras’s gas and energy business plan is to use the natural gas available as by-product of the crude oil production as feedstock to develop the fertilizer sector in Brazil and contribute to its self sufficiency in ammonia and urea.

Petrobras monetizes gas by series of fertilizer projects

The Gas-to-Chemical project is also part of this monetization program of the natural gas.

As part of this program, Petrobras is already proceeding with the construction of a 303,000 t/y of ammonium sulphate production unit to be installed at the Laranjeiras (SE) Petrobras fertilizer plant in 2013.

In 2014, Petrobras is expecting to start the commercial operation of the UFN-III, the unit of nitrogen fertilizer N°3, in progress at Tres Lagos, in the Matto Grosso do Sul Sate.

The UFN-III will have a capacity of:
- 1.2 million t/y urea
- 800,000 t/y ammonia
- 4,000 t/y urea granulation

In addition, Petrobras business plan 2012- 2016 is including the UFN-V, the unit of nitrogen fertilizer N°5, to produce ammonia in Uberaba, in Matto Grosso State.

Regarding the UFN-IV, the unit of nitrogen fertilizer N°4, it will be integrated in the Gas-to-Chemical planned in Linhares, in Esperito Santo State.

Estimated to $3 billion capital expenditure, the Petrobras Gas-to-Chemical project should produce 1 million t/y of fertilizer including:
- Urea unit
- Ammonia unit
- Methanol unit
- Acid acetic unit
- Formic acid unit ギ酸
- Melamine unit

The Gas-to Chemical should be located near the Gas Treatment Unit of Cacimba (UTCG) in order to facilitate the gas supply as feedstock.
Foster Wheeler to perform Basic, FEED and PMC

According to the contract signed with Petrobras for the UFN-IV project, Foster Wheeler is in charge of:
- Basic engineering design
- Front end engineering and design (FEED)
- Technical assistance and training during the Basic engineering design phase up to the commissioning and plant performances tests.

In parallel of the tasks mentioned above, Foster Wheeler will also conduct the integration of the different production units of the Gas-to-Chemical complex through:
- Process Licensors Management
- Brazilian sub-contractors Management

Petrobras and Foster Wheeler are planning to complete the basic design and the FEED by the end of 2013 and to move into the EPC in 2014 for completion in 2016.

In addition to Petrobras Gas-to-Chemical project, the Esperito Santo State expects to develop further downstream activities related to the fertilizer and agriculture sector as well as in the petrochemical industry.

In that respect the State Government and the City of Linhares are working with Petrobras to develop a framework of tax incentives for the development of the infrastructures of the oil and gas industry.

More than the previous Petrobras fertilizer projects to help the local development of the agriculture, the Linhares Gas-to-Chemical project awarded to Foster Wheeler is a strategic link between Petrobras upstream crude oil activities and Brazil reduction of fertilizer and chemical imports.

千代田化工、自社酢酸技術をブラジル国営石油会社に供与

千代田化工建設は23日、自社開発した酢酸プロセスがブラジル国営石油公社ペトロブラス社の「UFN-IV 」プロジェクトに酢酸製造技術として採用されたと発表した。

年産20万トン規模で、2013年末までに初期設計を完了の予定である。契約金額は非公開。

ペトロブラス社は、同国エスピリト・サント州にガス化学コンプレックスの新設を計画しており、アンモニア、尿素、メタノール、酢酸、蟻酸、メラミンなどのプラントを建設する計画を進めている。

（1）契約内容：酢酸製造技術の実施許諾、技術支援、トレーニング等
（2）装置能力：年産200,000 トン規模
（3）契約金額：非公表
（4）建設予定地：ブラジル、エスピリト・サント州リニャレス
（5）スケジュール：2013 末までに初期設計完了予定

千代田化工建設が開発した酢酸製造技術（ACETICA）プロセスは、メタノール・カルボニル法酢酸製造プロセスのひとつで、同社が自社開発した固体触媒を利用し、原料のメタノールと一酸化炭素を高収率で酢酸に転換する。

(1)固体触媒のため取扱いが容易(2)高価なロジウムのロスが少ない(3)反応器の効率が高い(4)副生成物が少ない、(5)腐食性が低い、などの特徴がある。また、気泡塔ループリアクターの採用によりスチームや電力などの用役消費量を低減する。

千代田が開発したACETICA® PROCESSは、メタノールのカルボニル化反応によって酢酸を製造するプロセスです。高性能な固定化触媒及び循環気泡塔型反応器などのユニークな技術を採用することによって他社競合プロセスと差別化しています。

Brazilian state-run oil company Petrobras continues its sales spree and is looking into fully divesting its stake in a concession with Chevron, and reduce interest in a license with Sinopec, Kallanish Energy reports.

The company said earlier this week it started the process to sell its entire stake (62.5%) in the Papa-terra field, located deepwater in the Campos Basin. The asset is part of the BC-20 concession and started operations in 2013.

With two platforms, it produced an average of 17,300 barrels of oil-equivalent per day. Chevron owns the remaining 37.5% non-operating stake in the field.

In a separate statement, Petrobras said it wants to sell part of its equity interest in two exploratory blocks belonging to the BM-PAMA-3 and BM-PAMA-8 concessions, located in the Para-Maranhao Basin offshore.

The Brazilian firm is the operator of the blocks with 100% ownership in the BM-PAMA-3 concession and 80% in the BM-PAMA-8 concession, in partnership with China’s Sinopec. The plan is to divest up to 50% of its holdings in the first license and 40% of holdings in the second.

Sinopec could exercise its pre-emptive right to acquire Petrobras’ stake in the shared concession.

“The concessions present a reduced exploratory commitment with the potential to prove significant volumes and establish position in a new frontier area,” said Petrobras.

These transactions are in line with the company’s strategy to optimize its portfolio and improve its capital allocation, in order to maximize value for shareholders. They are part of its 2020-24 divestment plan targeting $20-30 billion in sales.

		Quattor Participacoes SA
Petrobras 40%	Rio Polímeros(RioPol)	Rio Polímeros SA
Petrobras 40%	Nova Petroquímica (Suzano Petroquímica)	SA Quattor Petroquímica
UNIPAR 60%	Petroquímica União (PQU)	Quattor Basic Chemicals SA
	Polietilenos União	Polyethylenes Union SA
	UNIPAR's Chemicals Unit

	エチレン	PE	PP
Braskem	1,340	1,220
Riopol	520	540
PQU	500
Polietilenos		270
Suzano			750
合計	(2,360)	(2,030)	(750)
Copesul	1,135
Ipiranga		550

BASIC CHEMICALS

BASIC PETROCHEMICALS

POLYETHYLENES

POLYPROPYLENES

Petrobras to sell assets owned with Chevron, Sinopec