August 29, 2005
Petrobras and PDVSA will build a refinery in Brazil

(Associated Press) - "A new multibillion dollar refinery in Brazil that will process crude oil from Venezuela and Brazil should be up and running by the end of 2010 or in early 2011, Brazil's state-owned oil company said.

However, no decision has been made yet on the exact location of the refinery, said Sergio Gabrielli, chief executive of Petroleo Brasileiro SA.

Venezuelan leader Hugo Chávez has said it will be built in northeastern Pernambuco state, the native state of Brazilian President Luiz Inacio Lula da Silva. Gabrielli would confirm only that the refinery will be in northeastern Brazil.

The refinery will process about 150,000 barrels of crude oil daily and will cost between US$2 billion (euro1.6 billion) and US$2.5 billion (euro2 billion) to build, Petrobras has said.

The project will be a joint venture with Venezuela's state-oil company, Petróleos de Venezuela SA".