Petrobras To Bid for Fertilsers Plant Construction in Peru

Brazilian state-owned oil and gas giant Petroleo Brasileiro (Petrobras) will bid for the right to build and operate a fertilisers plant in Peru, Brazilian media reported on October 29, 2007.

The Peruvian Government will accept the proposals of interested in the concession companies until October 31, 2007. The plant will be fuelled by gas from Peru's Camisea field. The consortium offering the highest price for the gas used as raw material will win the bid. The minimum price set by Peru is $1.43 (0.99 euro) per million British thermal units (BTU).

The Peruvian government seeks the construction of a plant with a production capacity of 650,000 tonnes of ammonia and 1.0 million tonnes of urea, the president of Peruvian state-owned oil company PetroPeru, Cesar Gutierrez Pena, said. Petrobras and PetroPeru will jointly bid for the construction and the operation of the plant.

In 2006, Petrobras and PetroPeru signed a memorandum of understanding (MoU) for the construction of fertilisers and polyethylene producing plants in Peru. The MoU was renewed in March 2007.

Their competitors will be U.S. CF Industries and Terra Industries, Chilean Enaex, Mexican Protexa and a consortium comprising Indian Oswal Chemicals and Australian Burrup Fertlizers.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 30, 2007

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