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Petrobras expands RNEST processing capacity

Petrobras $PETR3 (-7,38 %)
$PETR4 (-6,79 %) has completed modernization work on Train 1 of the Abreu e Lima refinery (RNEST) in the city of Ipojuca in the state of Pernambuco, Brazil.

Around R$ 93 million was invested in the renovation and expansion (revamp), which will increase the plant's processing capacity from 115,000 to 130,000 bpd.

This important milestone marks the completion of the production capacity expansions planned for the refinery train currently in operation, with the aim of improving the flow of light products and increasing the processing capacity for pre-salt oil.

Of all Brazilian refineries, RNEST has the highest conversion rate of crude oil to diesel (70%). Once the RNEST project (SNOX, Revamp Train 1 and Train 2) is completed, the refinery will have a processing capacity of 260,000 bpd, which would mean an increase in national production of S-10 diesel of around 13 million lpd.

In December 2024, RNEST commissioned the SNOX unit, the first of its kind in the Brazilian refinery, which is responsible for reducing sulfur oxide (SOx) and nitrogen oxide (NOx) emissions and produces sulfuric acid, a new product marketed by the refinery that contributes to environmental protection. Among other things, the acid produced is an important raw material for the treatment and production of drinking water.

The contract award process for the completion of Train 2, which will increase RNEST's capacity by 130,000 bpd, is underway.

9 Commentaires

Daniel Kaufmann@Wollitz

@SAUgut77 Good luck with your goals and thanks for the correspondence ;) I'm trying to keep the EK of 6.15 for the time being and possibly lower it. I hope I can still make it before the EX date. Otherwise I'll see how high the share price is and still prefer to pocket the dividend ;)

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Daniel Kaufmann@Wollitz

@SAUgut77 I had a few thoughts: Trump wants to punish countries that get their oil from Venezuela and possibly also impose tariffs on Russian oil, which would explicitly affect China. Now my thought process was: Petrobras exports 30% to China, maybe this whole thing would make it possible to export more and possibly more expensive oil to China instead of selling it to South American countries like Argentina or Uruguay. I could be wrong about that, but I don't think the possibility is entirely far-fetched. In addition, Trump has not currently planned any tariffs on oil from Brazil. He once announced it in 2019, but the whole thing came to nothing. Should we continue to monitor this in any case, or how do you see it? Lg

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S.A.U.@SAUgut77

@Wollitz I see it a little differently, why make it more expensive to China in this situation...Petrobras has production costs of around ~35 dollars, so you could take the price with you or go down a little and increase profits through mass 😉 ...and as far as tariffs are concerned, let's wait and see what he wants to announce today.

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Daniel Kaufmann@Wollitz

@SAUgut77 Unfortunately I have to reply separately, somehow my GQ is having problems with the reply function. By more expensive I meant an export for a higher profit, i.e. a more expensive sale/export. Sounded a bit misleading, I admit. But if the demand in China is there, due to Trump's tariffs, then you could use this niche. That was my train of thought ;)

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S.A.U.@SAUgut77

@Wollitzall good....and of course you can raise the price a little or negotiate and thus make more, let's stick with the 30%, but you can also (don't think Petrobras is 100% utilized) go over the mass at similar prices and still achieve added value...but I'm not so far into Petrobras that I could exactly oversee capacities or the like.

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Daniel Kaufmann@Wollitz

@SAUgut77 I still have to acquire these values over time, thought you might have a better view than me. :) Personally, I would try to export really heavily to China, as China is an avowed enemy of Trump. I just assume that Petrobras can do good business there. Maybe I'm completely wrong. According to Ki, the US is the second largest buyer of Petrobras oil and I think that could drop, so they may have to sign other contracts to maintain sales. But yes......I'm also just making assumptions ;) Thanks for your answers though. I am currently trying to increase the position, but the price is currently rising quite well and it is not possible for me to reduce my buyin for the time being. Lg

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S.A.U.@SAUgut77

@Wollitz as long as Trump does not intervene and impose massive tariffs on Petrobras, all is well...they still earn well and if they do, it will be reflected in the divi, but let's assume the statos now until tonight.

On the other hand, Petrobras could also fall into the customs trap if there is a strong focus on China, so wait and see what happens...but it is no coincidence that China is inviting German automotive companies or that Rio or Vale have recently been to China for talks...., so just keep an eye on it, although Pref is not just about pure price gains, but about rich dividends 😉

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Daniel Kaufmann@Wollitz

@SAUgut77 You're right again. It's just questionable what China is planning, because they were so pissed off by the EU tariffs on their e-cars, which were absolutely right!!!..... Well, I'm not aiming for a price gain in that sense, but would like to keep pushing in without raising the buy-in. Maybe it's not feasible if you just keep performing, but I'm still hoping ;) Would like to increase to 400 - 500 shares ^^

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S.A.U.@SAUgut77

@Wollitz only time will tell...I have just 400 shares at 6.086 and would like to reduce the EK to below 5, but not much is missing and otherwise the first ones will be thrown out in a high phase and bought in again below 5...let's see how it develops in the near future.

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