Petrobras’ Big Plans for Brazil: US$ 224 Billion Investment and Double Output

A Petrobras plant in BrazilPetrobras, Brazil’s state-controlled oil and gas multinational announced that it will invest US$ 224 billion through 2014 and double production by 2020. About 95% of that will be invested in Brazil.

Massive offshore oil finds have been discovered near Brazil’s coast and some forecast they could hold 100 billion barrels of oil. Petrobras said it will spend US$ 118.8 billion on production and exploration. That is up 13% from the 2009-2013 plan.

Petrobras CEO Sergio Gabrielli says the company plans to double its production by 2020. Petrobras produces 2.7 million barrels per day now. Gabrielli says that figure will jump to 5.4 million barrels per day. Petrobras announced spending estimates on Monday

Petrobras said it expects to raise 58 billion through debt and equity sales over the five-year period, including a planned share sale this year.

Petrobras is looking to fund the development of offshore reserves in the so-called pre-salt region off Brazil’s coast, home to discoveries including Tupi, the largest find since Mexico’s Cantarell in 1976.

Petrobras, Latin America’s biggest company by market value, plans to raise US$ 25 billion in a share offering this year, which would make it the biggest stock sale in the Western Hemisphere in at least a decade.

Petrobras kept its output estimate for the pre-salt area unchanged at 1.18 million barrels a day in 2020. It lowered its forecast for production in foreign oil fields to 323,000 barrels a day in 2020 from 632,000 barrels.

The production targets don’t include output from projects Petrobras hasn’t started yet, such as the Franco oil field it plans to buy from the government in July with stock. The government said May 12 it found 4.5 billion barrels of recoverable light oil at Franco, the largest discovery since Petrobras found Tupi in 2007.

Petrobras will also have a minimum 30% stake in any new exploration license in Brazil, according to legislation the Senate approved this month. The corporation is also planning to its refining capacity to 3.2 million barrels per day by 2020, from about 1.8 million barrels a day at present.

Mercopress

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Your email address will not be published.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

How Brazil’s Lula Is Fooling the World

Lula’s party, the PT, covered up its historic radicalism during Brazil’s presidential campaign with ...

A Brazilian Airline Gol's airplane

Continental Partners With Gol to Sell Tickets in Brazil and South America

Brazilian Airline Gol has just announced an agreement with US-based Continental Airlines whereby passengers ...

Asylum Promises Brazil Lower Fees for Overseas Calls

Asylum Telecom LLC, a global IP telephony firm, recently launched channel development efforts in ...

Brazil Breaks Multi-State Gang Who Counterfeited Papers to Get US Visa

The Brazilian police, this Thursday, August 13, seized documents and computers during an operation ...

Lula Asks Bolivia: If Not Brazil Who’s Going to Buy Your Gas?

In yet another chapter of the natural gas struggle, Brazilian President Luiz Inácio Lula ...

Brian Smith, president of Coca-Cola of Brazil with the Brazilian line of products

Coca-Cola Is Betting on Brazil’s Thirst

When the political crisis in Brazil first gave signs that it would be around ...

Brazil’s Tourism Black and Blues

When African Americans talk about traveling to Brazil, two types of tourism tend to ...

Farewell to Arms

Rio’s governor, Anthhony Garotinho has compared past governmental efforts to disarm the population to ...

40% of Young Brazilians Don’t Know How AIDS Is Transmitted

600 thousand of Latin America’s total of 1.8 million HIV carriers live in Brazil, ...

US$ 7.782 bi: Brazil’s Foreign Trade Surplus is 40% Down in 2012

Brazil had a foreign trade surplus of US$ 89 million for the week between ...