Petrobras has confirmed plans to construct a premium-quality refinery with the capacity to process 600,000 barrels per day (bpd) of crude in the northeastern Brazilian state of Maranhao, with operations expected to start in 2013.

An agreement should be signed within 60 days with the state government, opening the way for the project and setting out each party's areas of responsibility, Petrobras said in a statement released Monday.

If it gets beyond the planning stage, the refinery would be the 24th operated by Petrobras, which wants to expand its capacity to produce gasoline and petroleum derivatives for the domestic market and increase exports of fuel products.

Last week, Petrobras announced a similar agreement with the government of the northeastern state of Ceara for construction of a refinery with the capacity to process 300,000 bpd of crude.

The oil company also unveiled plans to build a refinery in Rio Grande do Norte, another state in northeastern Brazil, that will produce gasoline, diesel and liquefied natural gas (LNG) starting in 2010.

Petrobras is expanding its portfolio of projects in an effort to increase the amount of Brazilian crude it refines, reduce dependence on imported diesel and grab a bigger share of the global energy market.

The company's most advanced project is the Abreu e Lima refinery, which Venezuelan oil giant PDVSA wants to join as a partner, being built near Recife, the capital of Pernambuco state.

Petrobras is also constructing the Rio de Janeiro Petrochemical Complex, or Comperj, at a cost of some $8 billion.

The new refineries are expected to add nearly 1 million bpd to Petrobras's installed refining capacity, which is currently 1.8 million bpd.

Last month, Petrobras said it found a "new oil accumulation" in ultra-deep waters in the Santos basin, where the Brazilian oil giant announced it discovered large potential reserves last year.

In late 2007, Petrobras announced that it had found what could be the world's largest oil field, called Tupi, in the Santos basin.

Tupi could contain between 5 billion and 8 billion barrels of crude oil, or enough to increase Brazil's current total proven petroleum reserves by up to 50 percent.

The company has been moving aggressively to explore for oil and increase production from offshore areas.

Petrobras, an integrated energy company and the global leader in deepwater oil exploration and production, operates in 27 countries in the Americas, Africa, Asia and Europe.

Shares of Petrobras, Brazil's largest corporation, trade on the Sao Paulo, New York, Madrid and Buenos Aires stock exchanges, but the Brazilian government retains control through a golden share. EFE

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Related Project
Rio de Janeiro Petrochemical Industrial Project (COMPERJ)
Facility Type: Petrochemical Owner: Petroleo Brasileiro S.A. (Petrobras)
Scope: New Construction Location: Itaborai Brazil