Petrobras' Plans to Increase Investments

Petrobras (PBR) announced that the company plans to invest US$92 billion in exploration and production over the next five years. The company's goal is to increase total production by 50% by 2013. Exploration and production in pre-salt areas will take up $29 billion of the alotted funds.

The Director of Exploration and Production for Petrobras, Guilherme Estrella, announced on Wednesday (2/4/09) the company's plans to invest US$92 billion between 2009 and 2013 with the goal of increasing the company's productive potential during the five year period. The figure is 41% higher than previous estimates made by the company for the 2008 to 2012 period.

The company's plan is to be producing 2.68 million barrels of oil per day by 2013. Last year, Brazilian oil output was around 1.85 million barrels a day.

Pre-salt exploration in the Campos and Santos basins will consume $29 billion of the investment, with production of new reserves reaching 219 thousand barrels per day. Expectations for 2020 are even more ambitious: by then the company hopes that deep water reserves will be producing 1.8 million barrels of oil per day.

Estrella went on to say that the company is planning to begin operation of the first platforms for pre-salt production, starting with the pilot system called Tupi in the Santos Basin with the capacity to produce 100 thousand barrels per day. They expect to start the second pre-salt production operation in the Santos Basin by 2013 in the Guará area.

According to Estrella, the discovery and use of new reserves is strategic for the company, adding that the ongoing projects are feasible and low risk. With oil prices low in the international market, he said that the company must maintain realistic expectations and continue to seek out cost savings.

During 2009, the company plans to start five new production systems for oil production and five additional for gas production. Furthermore, the company will continue to expand the gas projects in Manati, in the Camamu/Almada Basin, in Bahia, in addition to the gas fields of Lagosta, the Santos Basin; Canapu and Camarupim, in the Espírito Santo Basin; inUrucu, and in the Solimões Basin.

Comments

[Paul Killinger:]

Go, Brazil!

Feb 10 10:02 AM