A company from China wants to build an oil refinery in the Brazilian state of Maranhão, said on Friday the secretary of Oil, Natural Gas and Biofuels from the Ministry of Mines and Energy, cited by Brazilian newspaper O Globo.

Márcio Felix said it was a private project, in which the Brazilian oil thus far exported to China will be replaced by imported oil from Iran and refined to supply the domestic market.

The area negotiated with the government of Maranhão to house the refinery, according to Felix, is the same one where Petrobras carried out earthworks to start construction of the Premium I Refinery, whose project was cancelled and the land returned to the State government.

The site was recently visited by representatives of the Chinese company who were accompanied by Ministry of Mines and Energy officials.

Felix said that the deal may be closed by April 2018, representing an estimated investment of between US$7 billion and US$10 billion, which may have minority state funding from the Brazilian National Bank for Economic and Social Development (BNDES).

The Secretary, who declined to name the Chinese company in this project, said the future refinery will have a capacity to process 300,000 barrels of oil per day. (macauhub)