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Petrobras, Brazil’s state-owned oil giant, announced plans to invest 20 billion reais ($3.6 billion) to expand its refinery and petrochemical complex in Rio de Janeiro. The investment, confirmed by CEO Magda Chambriard, aims to bolster Brazil’s capacity for processing and refining hydrocarbons in the coming years.

The company will allocate 13 billion reais to the construction of a new plant in Itaboraí, focused on producing petrochemical derivatives, with another 7 billion reais dedicated to expanding a nearby refinery. The projects are set to commence in 2025, though details regarding the petrochemical expansion have yet to be fully disclosed.

Petrobras is the second-largest shareholder in Braskem, Brazil’s only petrochemical producer. Braskem currently boasts an annual PP production capacity of nearly 2 million tons and a PE capacity of about 3 million tons, encompassing HDPE, LLDPE, and LDPE grades.

Earlier this year, Abu Dhabi National Oil Company (ADNOC) made a 10.5 billion reais ($2.1 billion) offer to acquire a controlling stake in Braskem. However, negotiations were terminated without an agreement.

Petrobras' significant investment signals its long-term commitment to enhancing Brazil's refining and petrochemical production capabilities, aligning with the country’s strategy for energy and industrial growth.