Petrobras will increase the capacity of Group II base oil and recycle used oil.

Petrobras has announced plans to invest around BRL 33 billion (USD 6.1 billion) in refining and petrochemical projects across Rio de Janeiro, reinforcing its strategy to expand domestic fuel production, modernize infrastructure, and support Brazil's energy transition.

The investments cover key projects at the Boaventura Energy Complex in Itaboraí and the Reduc refinery in Duque de Caxias. These initiatives will increase Petrobras’ Group II base oil production capacity by approximately 12,000 barrels per day and boost diesel output by 13,000 b/d through efficiency improvements and the addition of new processing units at both locations.

At the Reduc refinery, Petrobras is evaluating the development of a used oil re-refining plant with a monthly capacity of 30,000 cubic meters (about 6,300 barrels per day). With the Boaventura Complex set to launch Group II base oil production, Petrobras is considering repurposing existing units at Reduc to process used oil, supporting its circular economy strategy by turning waste oil into high-value products. The Brazilian oil regulator, ANP, has already approved a co-processing trial, scheduled to begin later this year.

The Boaventura Complex will also feature a fuel production plant with a capacity of 19,000 b/d to manufacture renewable diesel, hydrotreated vegetable oil (HVO), and sustainable aviation fuel (SAF), in alignment with global decarbonization targets. The site will act as a strategic hub for Brazil’s low-emission fuel initiatives and will be integrated with local natural gas infrastructure.

At Reduc, Petrobras has successfully tested SAF production via co-processing, blending up to 1.2% corn oil into jet fuel. With ANP approval secured, commercial SAF production is expected to begin in the coming months, with a planned capacity of 50,000 cubic meters per month (about 10,000 barrels per day). Additionally, Reduc currently produces Diesel RS, which contains 5% renewable content, and is preparing to test a 7% blend for its future Diesel R7 product—demonstrating Petrobras’ continued focus on decarbonizing its fuel portfolio.

Further investments at Reduc include BRL 860 million (USD 158.2 million) for a new power plant and BRL 2.4 billion (USD 441.6 million) allocated for scheduled maintenance shutdowns between 2025 and 2029. These upgrades aim to enhance operational reliability and bring the facilities in line with international safety and efficiency standards.

In petrochemicals, Petrobras is assessing the potential to produce acetic acid and monoethylene glycol (MEG), both essential raw materials for the plastics and textile sectors. It is also planning to expand polyethylene production at Duque de Caxias, potentially increasing output to 200,000 tonnes annually.

These investments reflect Petrobras' broader commitment to strengthening Brazil’s energy self-sufficiency, enhancing energy security, and boosting industrial competitiveness through sustainable and circular economy practices.