A special purpose entity (SPE) led by Shandong KERUI Petroleum Equipment has signed an agreement with Brazilian Petroleum Corporation (Petrobras) to establish a $600m natural gas processing unit (UPGN) in Itaborai, Rio.
The project represents Petrobras’ first public bidding oil project since 2014 and largest natural gas treatment project in Brazil until date.
With the latest project, KERUI Petroleum becomes the first private enterprise in China to secure a Petrobras project in the field of oil engineering.
China’s ambassador in Brazil Li Jinzhang said: “We warmly congratulate KERUI Petroleum on the successful bid for the Brazil Itaborai Natural Gas Treatment Plant (UPGN) project, which demonstrates KERUI’s enterprising spirit and relentless efforts in Brazil and represents the important achievements of Chinese know-how entering Brazil.
“We hope KERUI Petroleum will set up a benchmark for projects on the Sino-Brazilian oil and gas cooperation with first-class design and construction to facilitate local economic and social development.”
Brazilian engineering company Metodo Potencial, which has delivered several projects for Petrobras over the past three decades, formed a joint venture with KERUI Petroleum which will play the leading role on the project.
The natural gas treatment project is expected to create more than 2,000 jobs in the region.
The plant station is used mainly to deal with the associated gas produced in the process of pre-salt oil development in the Santos basin for the normal production of pre-salt oil in Brazil.
The completion of the plant station is expected to increase the transportation and processing capacity of natural gas from 23mm³ to 44mm³ per day.
The processed natural gas will also be used for vehicles and in the industrial sector, reducing Brazil government’s import of natural gas.
KERUI Petroleum’s proposal was selected due to its advantages of modular and standardised design, reduced operating costs and improved project earnings.