Crisis Won’t Prevent Brazil’s Petrobras to Invest More in 2009

Petrobras's headquarters in Rio, BrazilJosé Sérgio Gabrielli, the president of state-controlled oil multinational Petrobras, said this Monday, December 22, that the company's investment in 2009 should be greater than this year's, despite the international credit crisis.

On presenting the company budget for 2008, Gabrielli recalled that the Annual Investment Budget (OAI) sent by the state-owned company to the National Congress, in August, prior to the worsening of the international financial crisis, forecasted investment of 72 billion Brazilian reais (US$ 30.3 billion).

"Faced with the new reality, the total may even be revised down, but we believe that investment in 2009 should be above the 50 billion reais to 55 billion reais (US$ 21 billion to US$ 23 billion) invested this year," he forecasted.

Gabrielli recalled, however, that this is a decision that still depends on the Board of Governors at the organization, to meet at the end of January, after having postponed from its meeting last Friday (19) the decision regarding the company's Business Plan for the 2009-2013 period, due to market uncertainty.

"Petrobras will be able to make modifications that will not cause it to cut projects. This may include an internal adjustment process and modifications to the maturity of these projects. It must be made clear that this question of investment is a decision for several years and not just one.

"The budget integrates projects that are currently under construction, in analysis or that are still in the conceptual phase. So the cutting may have no impact on the execution of these projects. It is possible to adapt," he guaranteed.

This is the second time in the current government that Petrobras should begin the year without knowing how much it will invest in the following year – the first was in 2004. Still, Gabrielli does not believe in delays in projects or in production losses in 2009.

"Production in 2009 is connected to decisions taken five years ago. In this case, if there are losses, they will only have an impact between 2013 and 2014," he explained.

ABr

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Ten Brazilians Killed by Israeli Bombing in Lebanon

Among the more than 300 people killed in Lebanon by Israeli bombs 10 are ...

With a Woman’s Face

By Brazzil Magazine In 1987, women from Christian base communities in the Catholic parish ...

Brazil: Rio Intent on Keeping Hoof and Mouth at Bay

The government of Rio de Janeiro, Brazil, has launched the second phase of this year’s ...

Brazil’s Adman Involved in Corruption Has 79 Different Accounts in 9 Banks

Brazilian House Representative Gustavo Fruet, assigned the task of reporting on financial activities for ...

Bulls Continue on the Loose in Brazil

Brazilian shares continued to roar higher on bullish sentiment, while profit-taking took a hold ...

Only Cooperation Will Solve Security Crisis in Brazil, Says Justice Minister

The Brazilian Minister of Justice, Márcio Thomaz Bastos, affirmed yesterday, May 18, that the ...

Brazil’s Domestic Debt Is Out of Control, Says Expert

In recent years Brazil’s foreign debt has been falling, while domestic debt has been ...

Brazil Wages War on Money-laundering

Brazilian President Luiz Inácio Lula da Silva said today that Brazil has been “implacable” ...

With Europe Sputtering Brazil Seems Heading for a Technical Recession

Brazil’s GDP stalled in the third quarter with zero growth when compared to the ...

Meet Blue Granite, a Rare Charmer from Brazil

When he founded his company, Ferraz Brasil, Marcelo Ferraz had the aim of selling ...