Petrobras gets $1 bln loan from Japan's JBIC, Tokyo-Mitsubishi

Mon Oct 15, 2012 1:17pm EDT

* JBIC to provide $600 mln of Petrobras loan
    * Bank of Tokyo-Mitsubishi to loan $400 mln
    * Loan to be used for energy efficiency plans

    RIO DE JANEIRO, Oct 15 (Reuters) - Brazil's state-led oil
company Petrobras signed a loan agreement for $1
billion with the Japan Bank for International Cooperation
(JBIC), Petrobras said in a statement Monday.
    The loan, the company said, will be used to increase energy
efficiency at some of its operations. 
    JBIC will provide $600 million of the loan and $400 million
will come from Bank of Tokyo-Mitsubishi UFJ Ltd., the
statement said.
    Petrobras did not disclose details on interest rates,
maturity or other terms of the loan.
    Some of the loan, Petrobras said, will be used to build an
energy cogeneration facility at its Comperj refinery, under
construction outside of Rio de Janeiro. Cogeneration uses excess
heat from industrial processes to generate electricity or power
other operations. 
    The first phase of the refinery will have the capacity to
refine 165,000 barrels of heavy crude oil a day and is expected
to begin operation in 2015. Most of the refinery's output will
be used to make petrochemicals.
    The funds will also be used to reduce natural gas flaring on
oil platforms in the Campos Basin, Brazil's main oil producing
region.
    Oil companies flare, or burn-off, gas coming from wells when
they don't have sufficient pipelines to transport the gas to
market or when gas prices are too low to justify its production.
    Brazil's government is forcing oil companies to flare less
gas to prevent waste and to reduce carbon-dioxide emissions.

 (Reporting by Jeb Blount. Editing by Paulo Prada and Sofina
Mirza-Reid)
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