The state-owned energy company Petrobras and Venezuela-based PDVSA have received a preliminary license granted by Brazil’s NE Pernambuco state government to build the Abreu e Lima oil refinery, which is in its development stage and will be located in the Suape industrial complex, Ipojuca, Brazil. The Abreu e Lima refinery has a design capacity to process 200,000bpd of heavy oil and will be constructed in association with Venezuela’s state oil company, PDVSA. Total project investment will be USD 4 billion. The refinery will produce, in volume order, diesel fuel, coke, naphtha, LPG and bunker oil. Product will be aimed at the demand in the NE of the country. Even though Petrobras and PDVSA have received the necessary preliminary license, they need to be granted the construction license in order to start plant construction, which is expected to be received by late August 2007. Both companies estimate that the operating license is to be granted in 2010. According to Petrobras representatives, the company has signed a contract for earthwork, draining and paving for Abreau e Lima oil refinery with the Brazilian engineering companies Odebrecht Galvão Engenharia, Queiroz Galvão and Camargo Corrêa.
