Brazilian president announces 900 mln U.S. dollar refinery investment

Brazil's President Luiz Inacio Lula da Silva announced on Friday a 900-million-U.S. dollar investment to enlarge and modernize a refinery owned by the energy company Petrobras in Sao Paulo state.

The investment will improve the Henrique Lave refinery, Petrobras's fourth largest, based in Sao Jose dos Campos.

Speaking at a ceremony at the refinery, Lula said he was proud that Brazil had achieved oil production self-sufficiency this year, adding that the country would become a world energy power and a member of the Organization of Petroleum Exporting Countries (OPEC).

"Whether they wish it or not, we will be the world's greatest energy power, independent of who is in charge," he said, "I am proud to be Brazil's president and to see a company like Petrobras become self-sufficient. Soon we will join OPEC in exporting the product," he said.

The new developments would make Brazil more independent, and as a result his country would not need to battle Bolivia, the United States and Iran, the president said.

The company, which had a lot of assets in Bolivia, is currently in conflict with Bolivia after President Evo Morales nationalized the country's gas and petroleum reserves on May 1.

Refinery work would begin in the second quarter of 2006, and the new facilities would begin operations in 2009, the company said. The refinery would generate 10,000 direct and indirect jobs, and also boost the capacity, efficiency, quality and security of Brazilian gasoline supplies.

Petrobras also said that 77 percent of the money would be used to buy equipment and ensure that the processes used at the plant protected the environment. As well as extracting greater volumes of gasoline from Brazil's extra heavy crude, the refinery will also produce useful byproducts including gas, diesel and naphtha.

Petrobras was highly qualified to compete with any other company thanks to its high technology and the professionalism of its staff, Lula added.

"Petrobras fears no one, and can challenge anyone, because it is highly qualified for this work," Luala said.

Source: Xinhua