Braskem, Petrobras and PetroPeru sign agreement to study an integrated petrochemical project in Peru

05-21-2008: Braskem, Petrobras and PetroPeru signed an agreement aimed at assessing the technical and economic feasibility to implement an integrated project for the production of 700 thousand to 1.2 million tons of polyethylene from competitive natural gas available in Peru.

This project will represent the installation of the largest petrochemical complex on the western coast of the America, combining global scale, cutting edge technology and high competitiveness. Peru has current and potential reserves of natural gas rich in ethylene, with content levels exceeding 10%. The competitiveness and strong attractiveness for new investments that exist in Peru today, as well as its privileged geographic position, were important points in approaching the companies for the project study.

Petrobras, which is already very present in the Peruvian market, made an important gas discovery in January 2008, in partnership with other companies. It expects the studies will contribute towards defining the best use of future production in Peru. The company thus reaffirms its commitment with the development of business and creation of value in South American companies, accentuating its operations in the petrochemical sector. The studies will also reinforce the agreement signed in 2006 between Petrobras and Petroperú, which has already given rise to several joint projects in the E&P and downstream areas.

For Braskem, the consolidation of the venture will be a new an important step in its growth strategy with the creation of value, which combines an internationalization program with access to competitive sources of raw materials, in line with its vision of being among the 10 largest petrochemical companies in the world. The installation of the new integrated complex on the Pacific coast is in line with the two projects in Venezuela that are in the implementation phase and which aim at supplying resin to the domestic market in Venezuela and consolidating Braskem's presence in North America and Europe.

The markets focused on by this new project are those countries on the western coast of the Americas, especially the United States, Peru, Chile, Ecuador and Colombia. Besides that, as a result of easy access to the Pacific and already available infrastructure in the region, the venture could become an important platform for exports to the Asia and western United States.