Petrobras, Mitsui study possible oil refinery joint venture

SAO PAULO, May 7 (Reuters) - Brazil's state-run oil company Petrobras said Thursday it signed an agreement with Japanese trading company Mitsui & Co (8031.T: Quote, Profile, Research) to study the viability of an oil refinery in Ceara state.

"The memorandum (of understanding) is based on Mitsui's interest to act as potential partner of the project," Petrobras (PETR4.SA: Quote, Profile, Research)(PBR.N: Quote, Profile, Research) said in a statement. "(It) aims to execute a joint study to analyze the implementation of the project with the participation of Mitsui."

The Brazilian company said in mid-2008 the oil refinery in the northeastern state of Ceara would require an investment of $11 billion.

The plant, along with another oil refinery Petrobras intends to build in Maranhao state, is expected to turn the company into an exporter of oil products, not only crude. It also has plans to build three other refineries.

In the statement, Petrobras said the agreement "does not create any additional obligation for the parties or any financial obligation for Petrobras." (Reporting by Inae Riveras; editing by Reese Ewing)