Brazil's Petrobras to target light oil and gas output in new plan

Nov 19, 2008 01:00 AM

Brazilian oil and gas company Petrobras said its new business plan, which it will announce at year-end, will prioritize tapping the country's light oil and natural gas -- a shift from the traditional strategy of pumping mostly heavy crude from the offshore Campos Basin, where it produces more than 80 % of Brazil's oil.
"Since 2003, after various discoveries of light oil and natural gas outside Campos Basin, broadly announced, Petrobras's strategy is focused on anticipating the production of light oil and natural gas. This strategy aims to maximize the return of the portfolio of projects due to the higher quality and price of light oil as well as the increase of the supply of natural gas," Petrobras said.

The comments came after an E&P executive from Petrobras told in Rio de Janeiro that the company is being forced to modify its investment plans due to a global financial crisis and the plunging price of crude oil. Petrobras said it was too early to determine whether lower oil prices will prompt it to make any cuts in investments, which are slated to be around $ 22 bn this year.
Petrobras plans to replace its $ 112 bn capital expenditures plan for 2008-2012 with a new, 2009-2013 plan by the end of the year. It had originally planned to make the switch in September, but held off in order to gauge how the global financial crisis would affect its plans.

The company said that it has yet to determine when it will contract 28 new deepwater rigs it will use in Brazil's new subsalt oil play, after originally saying it would do so by the end of the year.
Any short delay in tendering for the rigs, however, "will not cause any delay to the start-up of these units, which is scheduled to occur only between 2013 and 2017," Petrobras said.

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