# Petrobras Signs $1.46 Billion in Contracts to Complete Refinery in Pernambuco

*Project to expand Brazil’s refining capacity, create 30,000 jobs, and start full operations by 2029.*

- Published: 2025-10-24
- Section: Insights
- Tags: Energy, Oil, PETR4, Petrobras
- URL: https://brazilstockguide.com/insights/petrobras-signs-1-46-billion-in-contracts-to-complete-refinery-in-pernambuco/

![Refinaria Petrobras, Pernambuco, Rnest](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/10/rnest_1.jpg?fit=1024%2C684&ssl=1)

*Refinaria Petrobras, Pernambuco, Rnest*

**By Brazil Stock Guide –** **Petrobras (B3: PETR4)** has signed nine contracts worth **R$ 8.3 billion (US$ 1.46 billion)** to restart construction of **Train 2 at the Abreu e Lima Refinery (RNEST)** in Ipojuca, Pernambuco. The project, halted for nearly a decade following the **Car Wash (Lava Jato) corruption investigation**, is now back on track under the company’s **2025–2029 Business Plan** and the federal government’s **New Growth Acceleration Program (PAC)**. Full operations are expected by 2029, with over 2,500 workers already mobilized.

The agreements cover construction and automation services by **Consag, Tenenge, CPL, Possebon, Tecnosonda, and Schneider Electric**. Once completed, Train 2 will add **13 million liters (3.4 million gallons)** per day of **low-sulfur S10 diesel** to Brazil’s refining capacity — equivalent to about 8% of national output. Petrobras expects the project to generate around **30,000 direct and indirect jobs** during construction.

**“The volumes reinforce RNEST’s role in expanding production of higher value-added derivatives, boosting productivity, and supplying low-sulfur fuels. These are profitable investments that will drive integration and diversification while creating value in a fair energy transition,”** said **Petrobras CEO Magda Chambriard**.

### From Scandal to Recovery

The Abreu e Lima Refinery became one of the most emblematic projects tied to the **Lava Jato investigation**, which exposed a massive kickback scheme involving Petrobras and major contractors. Construction costs ballooned, and work on Train 2 was suspended in 2015 amid legal disputes and corruption probes. Since then, Petrobras has undergone a deep governance overhaul, adopting stricter procurement and compliance standards.

Restarting Train 2 now signals the company’s **return to large-scale refining projects** under tighter controls. The refinery — Brazil’s most modern, opened in 2014 — already operates with high automation and advanced environmental systems. In 2024, RNEST became the first in the country to run a **SNOX unit**, which reduces sulfur and nitrogen emissions while producing **sulfuric acid** for sale.

### Strategic Investment for the Future

Petrobras plans to invest **US$ 19.6 billion** in refining, logistics, petrochemicals, and fertilizers through 2029 — nearly twice the amount from the previous cycle. Train 2 is expected to reduce Brazil’s dependence on imported diesel and enhance the company’s capacity to produce premium, lower-carbon fuels.

For the federal government, the project also serves as a symbol of **industrial revival and regional development** in the Northeast. For Petrobras, it’s a test of credibility — a chance to prove that Brazil’s state-controlled oil giant can combine profitability, transparency, and industrial expansion after years of reputational damage.

If completed on schedule, the RNEST expansion will **reshape Brazil’s refining landscape**, positioning Pernambuco as a strategic hub for domestic fuel supply and exports — and marking Petrobras’s definitive comeback from its most turbulent chapter. In **2021, Petrobras sold its Mataripe Refinery in Bahia** to **Acelen**, a company controlled by Abu Dhabi’s **Mubadala Capital**.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/petrobras-signs-1-46-billion-in-contracts-to-complete-refinery-in-pernambuco/