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Your email address will not be published.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

Number of Brazilian Indians Attending Schools Grows to 164,000

Indigenous school education in Brazil expanded 40% in the last three years. There were ...

Poor and Rich Countries Discuss Education in Brazil

Improving the quality of education in the world. This is the objective of the ...

Serra Still in Lead of Brazil’s Presidential Race Despite Lula’s Opposition

Dilma Rousseff, presidential candidate of Brazil’s ruling coalition will continue with the current economic ...

In Brazil Lawmakers Will Make More than Their US and European Peers

Brazilian lawmakers (Lower House and Senate) thanks to a generous recent 62% increase will ...

40 Years of Road and Brazil’s Ben Jor Is Still Fresh

Jorge Ben Jor needs little introduction ”“ the legendary singer/guitarist has been around the ...

Buying Property in Brazil? Bring Your Tape!

One of the first things a real estate buyer wants to know about a ...

WTO Sides with Brazil in Chicken Dispute with EU

The World Trade Organization Dispute Settlement Panel has once again ruled in Brazil’s favor, ...

Crash Course

My wife assures me that there are rules, but I just don’t understand them ...

Brazil Experts Betting Key Interest Rate Will Fall 0.75% to 15.75%

Brazil’s annualized benchmark interest rate (SELIC), which currently stands at 16.50%, is expected to ...

Vehicle Sales in Brazil Grow 32% and Break Record

Sales of new vehicles in the Brazilian domestic market achieved in June the best ...