Brazil’s Petrobras to Invest US$54 Billion in Rio Over the Next Five Years

RIO DE JANEIRO, BRAZIL – Petrobras plans to invest US$54 (R$212) billion in projects in the state of Rio de Janeiro over the next five years. The news was provided by the company’s president, Roberto Castello Branco, during lunch at the Rio de Janeiro Trade Association.

According to Castello Branco, Rio de Janeiro will benefit from the revenue generated from oil production. Last year, the company paid approximately R$17 billion in taxes, and this trend is on the rise, with taxes from Petrobras’ activities, as well as from other companies investing in pre-salt.

The president of Petrobras announced that of the US$54 billion the company plans to invest, approximately US$20 billion will be used in the Campos Basin, to purchase exploratory blocks and partnerships with specialists in field recovery, in order to stabilize the downturn.

Castello Branco said that with the increase in pre-salt operations, expansion of the logistics structure would be required with the additional construction of gas pipelines. According to him, Petrobras needs logistics service, but it does not need to own it. In long-term contracts in this sector, the company could dispense with investments in the area, he added.

COMPERJ

During lunch, Castello Branco referred to past decisions that have driven the company to financial hardship and the involvement of directors in corruption cases.

He described as “disastrous” one of these initiatives, the Petrochemical Complex of Rio de Janeiro (COMPERJ), located in Itaboraí, because it made people believe in it and ultimately led to unemployment in the region after the construction work stalled.

He stated that the company is investing US$4 billion in the restart of part of the works, to finalize the construction of Route 3, a gas pipeline that will interconnect the pre-salt to the coast, and the natural gas processing plant.

In addition, the government of the state of Rio de Janeiro, Petrobras, and the Prosecutor’s Office of the state of Rio de Janeiro signed on Friday, August 9th, a conduct adjustment agreement (TAC) to repair environmental, social, and economic damages caused by the delay in COMPERJ’s works in the Itaboraí, São Gonçalo, and Cachoeiras de Macacu region.

Petrobras undertakes to invest R$814.5 million in the region’s rehabilitation, including basic sanitation and environmental actions. A total of R$300 million should be exclusively earmarked for environmental actions, including the reforestation of an area equivalent to 660 soccer fields.

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