Petróleo Brasileiro S.A. - Petrobras PBR has signed three major contracts worth around $892 million with Consag Engenharia to complete Train 2 at the Abreu e Lima Refinery (RNEST) in Pernambuco, Brazil. These contracts, awarded through a competitive bidding process, mark a significant step in Petrobras’ 2025-2029 Business Plan and reaffirm the refinery’s strategic role in serving Brazil’s North and Northeast regions.
Key Units to Enhance Output and Sustainability
Petrobras awarded contracts to resume and complete the construction of three new units that form part of its plan to add a second processing train (Train 2) to the existing RNEST refinery.
The three units are Delayed Coking Unit with a capacity of 75,000 barrels per day (bpd), Diesel Hydrotreating Unit S10 at 82,000 bpd and Atmospheric Distillation Unit with a 130,000-bpd capacity.
These units aim to increase the production of high-value derivatives and supply cleaner, low-sulphur fuels, directly supporting Brazil’s energy and environmental goals.
Doubling Refining Capacity by 2029
Once operational in 2029, Train 2 will double RNEST’s capacity from 130,000 bpd to 260,000 bpd, making it Petrobras’ second-largest refinery.
The expansion highlights the company’s commitment to Brazil’s development. The doubling of the refining capacity will not only meet rising domestic demand but also support the regional economic growth by generating around 30,000 direct and indirect jobs.
Modernization of Train 1 and Expansion Resumption of Train 2
Petrobras’ investment in these three major contracts will resume the long-awaited construction on RNEST’s Train 2. In January 2024, PBR unveiled its plan to resume the construction of Train 2 at the Abreu e Lima refinery by early 2025.
In May, Petrobras confirmed the completion of Train 1's modernization at the RNEST refinery, which was finalized in March 2025. The upgrade included enhancements to the existing crude distillation unit, delayed coker and other auxiliary systems. These improvements restored Train 1 to the full capacity of 130,000 bpd and boosted its yield of light products, while also improving the capability to process crude from Brazil’s offshore presalt fields.
Additionally, in December 2024, Petrobras commissioned RNEST’s new SNOX unit, the first of its kind in the Americas. This atmospheric emissions control system converts sulfur oxides and nitrogen oxides into sulfuric acid, which can be sold to third parties for use in water treatment and potable water production.
Beyond enabling RNEST to increase crude throughput while staying within local emissions limits, the SNOX unit also improves the refinery’s energy efficiency.
PBR’s Zacks Rank & Key Picks
Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A., or Petrobras S.A., is the largest integrated energy firm in Brazil and one of the largest in Latin America. Currently, PBR has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Global Partners LP GLP, Subsea 7 S.A. SUBCY and W&T Offshore, Inc. WTI. While Global Partners and Subsea 7 currently sport a Zacks Rank #1 (Strong Buy) each, W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. GLP owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for Global Partners’ 2025 earnings indicates 17.84% year-over-year growth.
Subsea 7 operates as an engineering, construction and services contractor to the offshore energy industry worldwide. The Zacks Consensus Estimate for Subsea 7’s 2025 earnings indicates 95.52% year-over-year growth.
Houston, TX-based, W&T Offshore is a leading oil and natural gas explorer with operations primarily focused on resources located off the coast of the Gulf of America. The Zacks Consensus Estimate for WTI’s 2025 earnings indicates 19.57% year-over-year growth.
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Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report W&T Offshore, Inc. (WTI): Free Stock Analysis Report Global Partners LP (GLP): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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