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Petrobras Awards $892M Contracts for RNEST Refinery Expansion in Brazil

Petrobras RNEST refinery expansion is moving forward with $892 million in newly signed contracts aimed at boosting refining capacity and fuel quality. The initiative supports the company’s long-term business strategy and positions RNEST as one of Brazil’s most vital energy assets.

Brazil’s state-owned oil company Petrobras has signed contracts totaling 4.9 billion reais ($892 million) with Consag Engenharia to advance the expansion of the Abreu e Lima Refinery (RNEST) in Pernambuco.

The contracts, secured through a competitive bidding process, cover three key processing units:

  • Coking Unit (UCR)

  • Diesel Hydrotreating Unit (UHDT-D)

  • Atmospheric Distillation Unit (UDA)

These units form part of Train 2, a major expansion phase aimed at doubling RNEST’s refining capacity from the current 130,000 barrels per day (bpd) to 260,000 bpd once completed in 2029.

The UCR will handle up to 75,000 bpd, the UHDT-D up to 82,000 bpd, and the UDA will manage up to 130,000 bpd, significantly increasing the plant’s ability to produce low-sulphur, high-value fuels.

This investment is aligned with Petrobras’ 2025–2029 business plan, which emphasizes expanding refining capacity and improving fuel quality across Brazil. The company has indicated that additional service packages for the RNEST project are still open for bidding.

Petrobras stressed that the decision to proceed with Train 2 was based on thorough technical and economic evaluations and approved under strict governance standards.

Upon full completion, RNEST will become Petrobras’ second-largest refinery, significantly enhancing domestic fuel production and reducing the need for imports.

In a related financial update, Petrobras reported a 48.6% year-on-year increase in net profit, reaching 35.2 billion reais in Q1 2025. Adjusted EBITDA rose by 1.7% to 61 billion reais, or 62.3 billion reais excluding one-time items, underscoring the company’s financial strength and operational efficiency.

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