Skanska is to build the first processing unit of an oil refinery in Brazil for Petrobras under a Skr1.8bn ($250m) contract.

The crude and distillation unit, located at the Petrobras Petrochemical Complex in Rio de Janeiro, will process about 150,000bpd.

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A Skanska-led consortium will design, engineer and build the facilities, and install electromechanical equipment.

The Skanska deal is part of a $623m Pertobras contract. The firm will also procure material and equipment, and assist in the start-up and operation of the unit.

The facilities at Petrobras Petrochemical Complex will cover an area of 45km² and become operational in 2013.

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