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Petrobras said to secure $1.8B loan for refinery

  • Petrobras (PBR -0.5%) borrowed 4B reais ($1.8B) in a 17-year loan from Banco Bradesco to help pay for work on the Abreu e Lima refinery in Brazil, Reuters reports.
  • PBR reportedly will pay annual interest of 9.5% plus Brazil's TR minimum savings remuneration rate.
  • Abreu e Lima, far behind schedule and costing more than 4x original estimates, is expected to cost $20B by the time it reaches full operating capacity of 235K bbl/day in mid-2015.
Comments (2)
  • petroglyph
    , contributor
    Comments (35) | Send Message
     
    The math here is outrageous. The capital cost per barrel is like nothing else in the world. 20b/235k bpd.... Around 85k per barrel.

     

    Compare the cost per BPD capacity, with, say, the Jamnagar complex built by Reliance (said to be about 10k). Pick any brown field or green field refinery purchase or addition in the US, most would be around 15-20k.

     

    This is an example of how the corruption and ineptitude of PBR goes far beyond the subsidizing of Brazilian drivers at the expense of shareholders.
    8 Apr, 08:28 PM Reply Like
  • User 24427803
    , contributor
    Comment (1) | Send Message
     
    How PBR manages to stay afloat with the corruption, combined with Brazil's uneducated work force and antiquated (backwards) employment laws is an incredible task. A sinking ship with holes in it can't last forever.
    8 Apr, 09:16 PM Reply Like
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