Lula Unveils Petrobras R$33 Billion Plan, Vows to Keep Brazil’s Oil

President Luiz Inácio Lula da Silva used a ceremony at Petrobras’s Duque de Caxias refinery on Friday to unveil a R$33 billion (US$6.1 billion) investment programme aimed at expanding refining and petrochemical capacity in the state of Rio de Janeiro and accelerating the company’s shift toward cleaner fuels. The bulk of the spending—about R$26 billion—will integrate the Refinaria Duque de Caxias with the new Complexo de Energias Boaventura in Itaboraí, a project expected to create roughly 38,000 direct and indirect jobs. Petrobras says the upgrade will lift daily output by 76,000 barrels of low-sulphur diesel, 20,000 barrels of aviation kerosene and 12,000 barrels of lubricants, while adding facilities capable of producing 19,000 barrels of renewable fuels. Petrochemical group Braskem, in which Petrobras holds a 36% stake, plans to invest a further R$4 billion to expand plastics capacity linked to the complex. Lula reiterated support for a global phase-out of fossil fuels but said Brazil "will not give up its oil for others to exploit," arguing that revenue from domestic reserves is needed "to enrich our people." He called Petrobras "the compass of the Brazilian economy" and urged regulators to ensure reductions in wholesale fuel prices reach consumers. The president also delivered an emphatic endorsement of Petrobras chief executive Magda Chambriard, describing her as "extraordinarily competent" despite what he termed a "fragile" appearance. Chambriard said the state-controlled producer is "committed to pushing Brazil’s GDP," noting the company replaced all of the 900 million barrels it pumped over the past year and intends to raise output further in the next cycle.