KERUI Petroleum Wins the Largest UPGN Project in Brazil

BEIJING, April 9, 2018 /PRNewswire/ -- In the past few days, the SPE led by Shandong KERUI Petroleum Equipment Limited (hereinafter referred to as "KERUI Petroleum") has successfully signed with Brazilian Petroleum Corporation (hereinafter referred to as Petrobras) the (UPGN) project worth nearly US$600 million for the gas processing plant in the city of Itaborai in the state of Rio. This is Petrobras's first public bidding oil project since 2014 and is also the largest natural gas treatment project in Brazil so far. This is of great significance to the development of oil and gas for Petrobras Pre-salt. KERUI Petroleum has become the first and only private enterprise in China to get a Petrobras project in the field of oil engineering. It has set a model for Chinese enterprises to follow on going overseas and creating a golden card of knowledge and expertise representing China.

Li Jinzhang, China's ambassador in Brazil, said: "We warmly congratulate KERUI Petroleum on the successful bid for the Brazil Itaborai Natural Gas Treatment Plant (UPGN) project, which demonstrates KERUI's enterprising spirit and relentless efforts in Brazil and represents the important achievements of Chinese know-how entering Brazil. We hope KERUI Petroleum will set up a benchmark for projects on the Sino-Brazilian oil and gas cooperation with first-class design and construction to facilitate local economic and social development."

Metodo Potencial, a Brazilian engineering company, has successfully delivered nearly a hundred projects for Petrobras to promote local market's development and support projects over the past three decades. It has formed a joint venture with KERUI Petroleum which plays the leading role on the project. Since January 2017, after officially receiving Petrobras's project bidding documents, KERUI kept going through 9 months of preparation for the best proposal. KERUI Petroleum eventually stood out among the well-known engineering companies from all over the world, with its multiple advantages of modular and standardized design, reduced operating costs and improved project earnings.

The natural gas treatment plant project, won by KERUI Petroleum, will be the largest natural gas treatment plant in Brazil. It will help the state government of Rio to provide over 2,000 local jobs to address unemployment problems. The plant station is mainly used to deal with the associated gas produced in the process of Pre-salt oil development in the Santos basin, which provides a strong guarantee for the normal production of Pre-salt oil in Brazil and is of great significance to the development and increased production of Pre-salt oil. The completion of the plant station has increased the transportation and processing capacity of natural gas from 23 million cubic meters to 44 million cubic meters per day. In addition, the processed natural gas will be used for vehicles and in the industrial sector, which can greatly alleviate Brazil government's pressure on natural gas imports.

KERUI Petroleum has promoted the friendship between China and Brazil by its own effort and has extended the value chain of a solid Chinese company to the world. It is the representative of private enterprises in the oil and gas field industry going overseas, taking risks, playing fair and establishing a positive reputation of China on the American continent.