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Petrobras Building Two New Refineries In Brazil

Brazilian state owned Petrobas has announced plans to construct two new refineries to assist in the nation's increasing need for fuel.

Petrobras said Wednesday it plans to build a refinery that could reach a production capacity of nearly 500,000 barrels of crude per day and would start operations by 2014.

The new refineries will provide a production capacity of heavy crude equal to 25 percent of the company's current domestic refining capacity. Petrobras authorities said Brazil needs a new refinery to supply the growing domestic demand.

Construction for a second refinery located in Brazil will begin in 2007, according to the company. The refinery should be in operation by 2011 and would be a joint project between Petrobras and its Venezuelan counterpart, PDVSA. The refinery will have a production capacity of 200,000 barrels a day and will process crude oil which is extracted in both Brazil and Venezuela.

Petrobras is currently directing its efforts to increase its investments towards the expansion of domestic production of natural gas in an attempt to reduce the country’s dependence on Bolivian gas after the nationalization of the industry in that country.