Using an average of 93% of the rated capacity, one percentage point higher than in 2009, Petrobras' 12 refineries in Brazil processed 1.798 million bpd of feedstock and produced 1.832 million bpd of oil products in 2010. Of the total of oil processed, 82% came from Brazilian fields, up three percentage points over a year earlier.
Abroad, Petrobras refineries produced 220,000 bpd of oil in 2010, a 4% growth compared to the previous year's mark. The company's international refining facilities' rated capacity rose four percentage points in 2010, to 70%.
|Oil product productions|
|Thousand barrels per day||2010||2009|
|Oil Products Production||2,052||2,034|
|Rated Capacity Utilization (%)|
|Domestic Crude Oil Participation (%)||82||79|
To achieve this operational performance, the company invested in refining facility improvements and made adjustments to the processing capacity. During 2010, scheduled maintenance shutdowns were made at the Presidente Bernardes (RPBC), President Getúlio Vargas (Repar), Henrique Lage (Revap), and Paulínia (Replan) refineries. Replan, the largest refining unit of Petrobras and of Brazil, boosted its processing capacity from 360,000 bpd to 396,000 bpd in the second half of the year.
Through adjustments made to refinery operating conditions, the diesel and kerosene production maximization program generated an additional 17.1 million barrels, increasing the volume of these oil products from 42.2% to 44.8% with the same processed oil load.
With the expansion in domestic oil production in recent years, Petrobras has invested to convert crude oil into higher value-added oil products to supply both the domestic and the international markets. In 2010, a retarded coking unit, which converts heavy oils into lighter fractions of oil of higher value-added, and a coke naphtha hydrotreatment unit went on stream at Revap aiming to make cleaner fuel by lowering the sulfur content. It is worthy of note that these fuels always contain sulfur particles, present in millionths parts; therefore, is not possible to completely avoid air emissions, because there are other factors involved, such as engine specifications and traffic conditions.
Investments have also been made in other refineries in order to offer better quality products to market. Besides Revap, hydrotreatment plants are being built at the RPBC, Reduc, Regap, RLAM, Repar, Recap, Replan, and Reman refineries to produce lower sulfur-content fuel.
Since most of its income comes from Brazil, Petrobras aims to meet the country's market demands, trading gasoline, diesel fuel, lubricating oil, jet fuel (QAV), naphtha, liquefied petroleum gas (LPG), lubricants and bunker. To meet the surge in demand expected for the upcoming years, the company is investing in expanding refining capacity in Brazil, which has not received resources in new refineries for three decades.
Scheduled to begin commercial operation in 2013, the Abreu e Lima Refinery, in Pernambuco, will have capacity to process 230,000 bpd of heavy oil and to produce up to 162,000 bpd of low sulfur content diesel, with 10 ppm (parts per million), in accordance with international specifications for this fuel. It will also produce liquefied petroleum gas (LPG), naphtha, bunker, and petroleum coke.
The Premium I Refinery, to be built in Bacabeira (state of Maranhão), is scheduled to go on stream in two phases: the first, scheduled for 2014, with a processing capacity of 300,000 bpd of oil, and the second, in 2016, expanding the capacity to 600,000 bpd of oil. The Premium II Refinery, meanwhile, with start-up scheduled for 2017, will be built in Caucaia (state of Ceará) and will have capacity to process 300,000 bpd of oil. The refinery will be connected to a port terminal, at Port of Pecém, through a pipeline measuring 11 kilometers in length. The two refineries will primarily produce medium distillates such as diesel fuel and jet fuel. An agreement was signed, in November 2010, for the supply of the basic designs and pre-details for the two refining units.
The Rio de Janeiro Petrochemical Complex (Comperj) Refinery is being built in Itaboraí (state of Rio de Janeiro). Its first phase will start operating in late 2013 with a processing capacity of 165,000 bpd of oil, while the second stage of complex will begin its commercial activity in 2018, bringing capacity to 330,000 bpd of oil. It will produce diesel, LPG, jet fuel, naphtha, fuel oil, coke and sulfur in order to supply the domestic market and provide feedstock to the petrochemical plants. About 60% of the bids that were expected to be made for the purchase of equipment have been completed, and the remainder should be hired by late 2011.
In September, a gasoline unit went on stream at the Potiguar Clara Camarão Refinery (RPCC) with capacity to produce 5.2 thousand bpd of gasoline and 1.6 thousand bpd of petrochemical naphtha. Its expansion work is expected to be completed in 2011.
Due to the investments made in building these new refineries, domestic processed throughput is expected to be 2.26 million bpd in 2014. For the period after 2014, when the second stage of enhancement of Comperj and the two Premium refineries in Northeastern Brazil are expected to be completed, Brazil's refining capacity is slated to reach 3.2 million bpd of feedstock processed in 2020. This will allow Petrobras to not only meet domestic demand, but also to export oil products, adding value to the increased domestic production of crude oil.
The 7.5% growth in the Brazilian GDP in 2010, the highest since 1986 according to the Brazilian Institute of Geography and Statistics (IBGE), boosted demand for oil products in Brazil. In this scenario, Petrobras traded 2.378 million bpd on the domestic market, up 13% over a year earlier, with emphasis on diesel fuel, gasoline, natural gas, and aviation fuel sales.
With the recovery in the industrial activity, the larger investments in infrastructure, and grain harvest, diesel fuel sales rose 9% in 2010. The volume of gasoline sold was 17% higher than in the previous year due to the upward trend in the economy, the more expensive ethanol, and because of the Federal Government's decision, in February, to reduce the amount of ethanol blended with gasoline (from 25% to 20%).
Demand for aviation fuel rose 19%, with the recovery of the Brazilian and global economies and the consequent increase in the number of domestic and international flights from Brazil. Inventory replenishment in the petrochemical industry caused naphtha sales to grow 2% in 2010. LPG sales, meanwhile, rose 4%.
The 33% surge in natural gas sales was due not only to the expansion of consumption in the industrial sector, but also to the larger share of gas used to fire thermoelectric plants. Because industrial plants are substituting fuel oil for natural gas and coal, oil product sales were down 1% in 2010.
|Sales Volume - Domestic Market|
|Thousand barrels per day||2010||2009|
|Total Oil Products||1,960||1,770|
|Alcohols, nitrogenated products, renewable products and others||99||96|
|Total Domestic Market||2,378||2,106|
|Oil and oil products exports and imports|
|Thousand barrels per day||2010||2009|
|Oil and Oil Products Imports||615||549|
|Oil products imports||299||152|
|Total Oil and Oil Products Exports (1)||697||705|
|Oil exports (2)||497||478|
|Oil products exports||200||227|
|Net Oil and Oil Product Exports||82||156|
(1) Includes exports in transit.
(2) Includes the oil export volumes from the Downstream and Exploration & Production areas.
|Financial balance of the trade balance(1)||$ million|
|Oil and Oil Products Imports||18,077||12,327|
|Total Oil and Oil Products Exports||19,610||15,201|
|Net Oil and Oil Products Exports||1,534||2,874|
(1) Does not include natural gas, liquefied natural gas (LNG), and nitrogenated products.
In 2010, Petrobras' trade balance posted a surplus of $1.534 billion, a result that includes oil product exports and imports, but disregards natural gas, LNG and nitrogen. In 2010, oil exports reached 497,000 bpd, up 4% compared to 2009, reflecting the increase in domestic production. Due to the heated domestic market, oil product sales to foreign markets slumped 12%, to 200,000 bpd.
Foreign oil purchases amounted to 316,000 bpd, a 20% drop, while that of oil products surged 96%, closing at 299,000 bpd. Reflecting the heightened demand on the internal market, diesel fuel imports topped-out at 143,000 bpd, 149% more than in 2009, while those of jet fuel closed at 34,000 bpd, an increase of 60%. Gasoline imports reached 9,000 bpd due to the significant growth of the fleet of flex fuel vehicles, coupled with the shortage of ethanol in the market in early 2010.
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