Petrobras to focus on production and exploration

Jan 26, 2009 01:00 AM

Brazil's state-run oil company Petrobras said it plans to invest $ 104.6 bn in production and exploration through 2013 while aiming to become one of the world's biggest energy companies. The amount will account for 59 % of its total investments of $ 174.4 bn in the five-year period, the company said.
Some $ 43.4 bn is supposed to go to downstream operations, while the rest will be invested in gas, energy, petrochemicals, distribution, corporate and biofuels. Nearly $ 48 bn is slated for new projects. The company said it expects to invest $ 28.6 bn this year alone.

Petrobras's investment plan for 2009-2013 increased significantly from the $ 112.4 bn announced a year ago for the 2008-2012 plan. The investments in production and exploration will increase by nearly 71 % over last year's plan, Petroleo Brasileiro President Sergio Gabrielli said.
Exploration and production will be the company's main focus abroad, especially in Latin America, Western Africa and the Gulf of Mexico. The company said the new plan is aimed at maintaining the "aggressive growth goals... and incorporates resources aimed at exploring and developing the oil discoveries made in the pre-salt cluster."

Four deep, pre-salt fields are expected to go on stream by 2013, the company said. The total production of oil and natural gas is expected to increase from 2.4 mm of barrels of oil equivalent in 2008 to 3.6 mm of barrels of oil equivalent in 2013.
The new plan did not incorporate possible cost reductions, though the company acknowledges that the "scenario is one of lower prices" and said it "will work hard on slashing the costs of the goods, products and services used in its investments."

The company also said that it maintains its vision of "becoming one of the world's five biggest integrated energy companies, basing such development on profitability, social and environmental responsibility and integrated growth."
The company had postponed completing the plan last year citing "uncertainty and volatility" in world oil markets.

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