Petrobras expects production lift from new ship deliveries

|About: Petrobras - Petroleo Brasil... (PBR)|By:, SA News Editor

Petrobras (PBR +1.9%) says it expects to receive the first of eight new PLSVs - pipe laying support vessels - this month that could play a key role in increasing oil production this year.

The ships are expected to help boost crude oil production by allowing PBR to increase the pace of connecting new wells to existing platforms; the company expects crude oil output to rise 7.5% in 2014, up from 1.93M bbl/day last year.

PBR also is finalizing the number of vessels it expects to use at the Libra subsalt field; it expects to use 12-16 platforms at the field, which is estimated to contain recoverable reserves of 8B-12B boe.