Brazilian gas giant Petrobras to produce biodiesel in Portugal

Brazil’s state-owned oil and gas giant Petrobras announced Tuesday that its board of directors approved the implementation of a project to produce biodiesel in Portugal, in partnership with the Portuguese company Galp Energia.

The agreement, which foresees hydrocarbon exploration in deep waters in the Alentejo Basin, was signed by Petrobras’ wholly-owned subsidiary Petrobras International Braspetro BV (PIB-BV) and the government of Portugal.

Under the agreement, which was already approved by the Portuguese government as well, Petrobras will have 50 percent stakes in the Gamba, Lavagante, and Santola blocks, and will be their operator. The area of the blocks covers an area of some 9,000 square km, where depths range from 200 to 3,000 meters.

According to Petrobras, the new projects are in addition to four other blocks already operated by the company off the coast of Portugal, in partnership with Galp and Partex and located in the Peniche Basin.

The company also said that the biodiesel production in Portugal is expected to start in 2015 and reach 250,000 tons per year. The estimated investments amount to 240 million U.S. dollars.

The biodiesel produced in the area will be destined for the European market, especially the Iberian region. With the new project, Petrobras expects to strengthen its position as a biofuel producer in the European market.