Oil Prices’ Collapse Forces Brazil’s Petrobras to Review US$ 112 Bi Investment Plan

Brazilian Petrobras rig Petrobras, the Brazilian state-controlled oil and gas multinational, will continue to review its massive 2009/2013 investment plan next January on account of the uncertainties and volatility of several markets, said the company in an official release.

Petrobras directors in their last December meeting said existing spending plans will be maintained but asked for a full review of the draft plan for the next five years. "The Board recommended that the projects be reassessed based on cost premises to face the scenarios at hand," added the release. The new plan was originally scheduled to be released in October.

In London Brazil's Energy minister Edison Lobão admitted that the collapse of the oil price in international markets has made it difficult for Petrobras to plan ahead. Crude prices reached US$ 147 US last July and on Friday, December 19, closed at US$ 34.

Petrobras investment plan for 2008/2012 involved US$ 112 billion and had been approved last year. Basically US$ 22 billion were to be invested annually to expand oil and gas output, increase its share in the ethanol market and upgrade refineries.

In related news Petrobras announced that the corporation's average oil production in Brazil was 1,844,940 barrels per day in November, 4.6% over a year ago, but a slight 1.5% decrease compared to October 2008.

Natural gas production in domestic fields, averaged 51.241 million cubic meters per day, 16.7% above November 2007 and 4.8% more than a month earlier.

According to Petrobras crude production in November was lower due to the scheduled shutdowns at platforms operating in the Northeastern Pole of the Campos Basin, which are already running normally again.

Adding oil and natural gas volumes, average domestic field production reached 2,167,236 barrels of oil equivalent (boe) per day, 6.4% more than a year ago and 1.9% less than the volume extracted in October 2008 on account of the platform shutdowns.

Petrobras' total production (oil and gas in Brazil and abroad) was 2,403,403 barrels of oil equivalent per day, 6.5% more than a year earlier and 1.5% less than October 2008.

Mercopress

Tags:

You May Also Like

Colombia’s Ecopetrol Joins US’s Anadarko to Explore Oil Off Brazil Coast

Ecopetrol S.A., the Colombian state-owned oil company said Tuesday, April 14, that it signed ...

After 8 Inmates Are Killed, Some Decapitated, UN Asks for Brazil Reforms

While assessing the recent outbreaks of violence that took place in several prison facilities ...

Brazil Starts Biodiesel Drive

August 25 was the official launch of the endeavor by Brazil to produce a biodiesel ...

Improving Brazil’s Public Schools: Nine Recommendations

In the article, “The Paradox of the Good Student: Race and the Brazilian Educational ...

Brazilian Indians in Washington for Indian Museum Opening

The United States Ambassador to Brazil, John Danilovich, received leaders of the Sujá, Kaapor, ...

Handcraft Makes Brazil’s Spezzato Clothes Unique

Brazilian brand Spezzato is getting ready for a new project: selling clothes to the ...

Rousseff Says Brazil Is Just Protecting Itself While US Is Distorting World Trade

Brazilian president Dilma Rousseff, carrying on a tradition since 1947 at the United Nations ...

The Good Money Brazilians and Mexicans Are Making in the US and Sending Home

Latin American immigrants living in the United States will send more than 45 billion ...

On Its Way to Become the Planet’s 5th Largest Economy Brazil Shows Vitality and Endurance

After decades of chronic political unrest within a number Latin American countries, that featured ...

Cuban leader Fidel Castro

For Brazil Castro Is Respectable But a Little Old-Fashioned on Ethanol

Brazilian Foreign Minister, Celso Amorim, compared Brazil to a pilgrimage place or a Mecca ...