Petrobras may rethink Okinawa heavy crude use plan

TOKYO Oct 26 (Reuters) - Brazilian state-run oil company Petrobras (PETR4.SA) (PBR.N) may change a plan to process more heavy crude at its Okinawa refinery, currently dedicated to lighter grades, its top executive said on Monday.

Petrobras had considered an upgrade study which included building a unit to process heavy crude at the refinery on Japan's southern island, but it postponed it earlier this year. [ID:nSP411918]

Since Petrobras entered into the initial investment plan, the discount between heavy and light crudes has narrowed, with heavier crudes rising due to OPEC cutting its mostly heavier oil output.

"What we are doing now in Nansei Sekiyu is we are going to have a reassessment of the investment plan," Jose Sergio Gabrielli, the company's chief executive, told reporters.

"We need to do some investment in the refinery, but (the initial plan) probably needs to be changed to take into consideration the refining market."

The Brazilian oil firm took control of Nansei Sekiyu K.K. last year, which has one crude distillation unit (CDU) with capacity of 100,000 barrels per day (bpd) at its refinery. (Reporting by James Topham, editing by William Hardy)