This excerpt taken from the PBR 6-K filed Mar 28, 2006.
Petrobras announces site of Rio de Janeiro Petrochemical Complex
(Rio de Janeiro, March 28, 2006). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces that the Executive Board has approved the location of the Rio de Janeiro Petrochemical Complex COMPERJ in the municipality of Itaboraí and São Gonçalo, state of Rio de Janeiro.
The selection of these municipalities as the site for the Complex was based on technical, economic and environmental criteria. The determining factors in choosing the location were the proximity of the site to Petrobras installations in Rio de Janeiro, the availability of labor for both the construction phase and also once the complex is operational, and its proximity to port installations. In addition the region can easily absorb the environmental impact of the new project.
The initial phase of the project involves the construction of a Basic Petrochemical Unit (UPB) in partnership with the National Economic and Social Development Bank (BNDES) and, eventually, other interested parties representing an investment of US$ 3.5 billion.
The Petrochemical Complex is expected to produce annually about 1.3 million tons of ethane, 900,000 tons of propane, 360,000 tons of benzene and 700,000 tons of p-xylene, as well as oil products, principally coke, adding value to 150,000 barrels/day of heavy oil from the Campos Basin.
This unit will be the basis for the development of an industrial complex, including site-wide utility facilities and plants manufacturing polyethylene, styrene and polypropylene, paraxylene and glicol-ethilene.
The total investment in the Complex, including the second-generation units, will be about US$ 6.5 billions. The Complex will also ensure the feasibility of the regional location of several third-generation plants in the consumer goods segments from plastic utensils to components for vehicles, aircraft and ships.