Seeking Alpha

Petrobras 2013 crude oil output misses target, undercut by aging platforms

Petrobras (PBR -0.3%) says Brazilian crude oil production in 2013 fell short of its target, as output at mature fields declined and new offshore platforms were delayed.

Output was undercut by ongoing maintenance at aging offshore platforms as PBR tried to reverse natural declines at mature oil fields in the Campos Basin, where more than 85% of Brazil's crude is produced.

PBR produced 1.93M bbl/day of crude in 2013, down 2.5% from 2012 and lower than the company's target of 2.02M; production started to trend upward in H2 2013 as nine new platforms installed in late 2012 and early 2013 began to ramp up, but PBR says some of the new platforms were behind schedule.

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Comments (2)
  • Capt Jack Daniels
    , contributor
    Comments (1466) | Send Message
    PBR is a horrible company to invest in as an outsider.
    1 Feb 2014, 07:25 PM Reply Like
  • FlaYankee
    , contributor
    Comments (127) | Send Message
    This is a case of too much government interference in the day to day operations of Petrobras resulting in the company having to import millions of gallons of gasoline at market prices and forced to sell them in country at below market prices; guaranteeing a loss on every gallon of fuel they sell! Price controls have destroyed shareholder value and hampered the company with losses even as they produce close to two million barrels of oil per day. In addition, the government mandates preferences for Brazilian companies in the selection for oil equipment and services companies hampering efforts to simply pick the highest quality and most efficient companies. There are much better choices for Oil Majors then Petrobras which comes with too much government baggage.
    2 Feb 2014, 10:51 AM Reply Like
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