OREANDA-NEWS. We set a new oil product production record at our refineries in Brazil in 2014, reaching a total of 2.17 million bpd. This volume is 45,000 barrels of oil per day above the previous record, set in 2013, with a 2.1 percent increase in the year. This is the sixth annual record in a row, and shows oil product production has grown at sustainable levels.

The total production record was accompanied by records in various products over the past year, especially pf the oil products the market consumes the most, such as gasoline, diesel, and kerosene.

In 2014, the production of diesel, a fuel for which there is great demand in the trucking industry, totaled 311 million barrels, a million more than in 2013. The start-up of the diesel treatment unit at the PaulЁЄnia Refinery (Replan - SP), in November 2013, at the Gabriel Passos Refinery (Regap - MG), in January 2014, and at the Alberto Pasqualini Refinery (Refap - RS), in September 2014, made a significant contribution to this result. In addition, six refineries set annual records due to the increased use of distillation and hydrotreating units, accounting for 72.3 percent of the diesel production: Replan, Landulpho Alves Refinery (RLAM- BA), Presidente GetЁІlio Vargas Refinery (Repar - PR), Presidente Bernardes Refinery (RPBC- SP), Henrique Lage Refinery (Revap- SP), and Capuava Refinery (Recap- SP).

A new annual record was also set for gasoline, another product for which there is growing demand on the market and which, from January 2014, went on to be sold with low-sulfur levels (50 parts per million). Gasoline production totaled 180 million barrels, up a million barrels over 2013. Growth was achieved with the increased use of cracking units (process used to transform heavy oil into nobler oil products). Four refineries reached their biggest annual production levels and contributed significantly to this result, accounting for 34.4 percent of the gasoline volume: Landulpho Alves Refinery (RLAM- BA), Refap, Regap, and Recap.

Total kerosene production closed the year at 38 million barrels, three million barrels more than in 2013. This is the outcome of production process optimization, of taking advantage of synergies among refineries, and of market redistribution among supplier poles. Five refineries set annual records, accounting for 56.6 percent of kerosene production: Duque de Caxias Refinery (Reduc - RJ), Replan, Regap, Repar, and Isaac SabbЁў record (Reman - AM).

Oil products for the industry

Refining capacity optimization has also led to new production records for oil products used by the Brazilian industry.

Asphalt production was 3.3 million tonnes in 2014, 600,000 tonnes more than the 2013 record. The growth in oil product production met the growing demand on this market. Four refineries set records, accounting for 58.9 percent of asphalt production: Regap, Replan, Reduc, and Reman.

The production of propylene, the petrochemical industry's feedstock, was also a record, coming in at 882,000 tonnes in 2014, 36,000 tonnes more than the previous record, set in 2012. Revap, Repar, and Refap reached their highest historical productions of this oil product to meet industry needs.

The production of base oils used to manufacture lubricants added up to some 680 million liters for the second consecutive year. Base oils are produced at Reduc, RLAM, and at Refinaria Lubrificantes e Derivados do Nordeste (Lubnor- CE), and the 2013-2014 volume exceeded that of the 2011-2012 biennium by 80 million liters, allowing an increase in the domestic market supply and availability for exports.

Finally, the volume of paraffin produced at RLAM and Reduc was the highest in the last six years, totaling 89,000 tonnes in 2014. Contributing to this result was production process optimization and the increase in the products portfolio to meet demand on the domestic and foreign markets.

This performance reflects the increase in operating efficiency achieved by the integrated management of the Downstream system, contributing reducing oil product imports. The mark was reached respecting the principles Safety, Environment and Health that guide our actions.