Brazil’s Petrobras Invests US$ 112 Bi to Be Among World’s Top Five in Energy

Petrobras headquarters in Rio de Janeiro, Brazil Brazil's government-controlled oil company Petrobras announced plans to invest 112 billion US dollars in production, exploration and related activities in Brazil and overseas during the next five years.

Petrobras president José Sérgio Gabrielli said US$ 65 billion will go into exploration and production and the bulk of investments, US$ 97 billion are to be spent in Brazil and US$ 15 billion overseas.

However, although the investments detailed under the 2008-2012 plan represent an increase of 29% over the 87.1 billion in the 2007-2011 plan announced last year, the company set production targets lower.

Petrobras said it expected oil and gas output in Brazil to rise to 3.455 million barrels of oil equivalent a day in 2015, while the previous plan placed 2014 overall output at 4.556 million barrels a day. But the company gave no reason for the lower production targets.

Petrobras aims to refine 2.061 million barrels a day in 2012, hoping to use 90% of Brazilian oil in its domestic refineries. That is up from 1.746 million barrels a day in 2006. In 2015, Petrobras aims to process 2.659 million barrels a day in Brazil.

Including overseas refineries, Petrobras aims to process 2.409 million barrels a day in 2012, and 3.007 million barrels a day in 2015. That is up from a total of 1.871 million barrels a day processed in 2006.

Petrobras underlined that most of the planned investment, some 104 billion US dollars, will come out of its current resources.

In bio-fuels, Petrobras wants to lead the Brazilian production of bio-diesel, widen its participation in ethanol and become a global player in biofuels trading.

Gabrielli also announced a strategic plan to make Petrobras one of the five biggest integrated energy companies of the world by 2020. Petrobras leading position target has so far been limited to Latinamerica.

"The company intends to rank among the world's five largest – and one of the favorites – in the field of integrated energy by 2020", confirmed Gabrielli.

"We will compete with the private sector, because we do not yet need government support to compete. Obviously, once we affect private interests, we will be accused of being state protected. We are acting as a competitive company, in a competitive environment, defined by the Brazilian Petroleum Bill".

However the president of the Federation of Industries from the State of Rio de Janeiro (Firjan), Eduardo Eugênio Gouvêa Vieira, criticized the possibility of the oil sector being dominated by the state-owned company, especially in the petrochemical field.

"Petrobras is centralizing, and this issue must be discussed by Congress. Petrobras has a larger share now than it did in 1992. It owns 40% of the largest company in the sector, which is Braskem, and now it bought Suzano. Thus, it dominates the petrochemical market, in terms of percentage", he insisted.



  • Show Comments (8)

  • Kristina Fitzsimmons

    Petrobras and Murder
    Im a little nervous they are going to exploit palm. Petrobras just signied a 700m joint contract in Mozambique, tropical Africa. More power too them if they are using jatropha etc. I just dont trust a company that is willing to wipe out an entire tribe of people for profits. (Block 31 and ITT, in yasuni National Park) 😥

  • Peter Howard Wertheim

    Some of you folks do not seem capable of accepting that a developing or emerging country can create such a powerful oil and gas industry. Just in the US Gulf of Mexico Petrobras will invest US$4.5 billion and Petrobras will pioneer the deployment of a Floating, Production, Storage and Offloading (FPSO) facility in the ultra deepwater US Gulf of Mexico.


  • ch.c.

    “Ever been in public service in Brazil? It’s much worse than you think.”
    Same forlack of infrastructure, no maintenance of your exisiting infrastructure, vote buying, education, poverty, corruption, police crimes, impunity, Your (IN)Justice dept, Your Supreme Court of corrupted people, number of slaves, racism against Brazilians blacks, ……just to name a few out of many many more !!!

    And when a scandal is revealed, it is annoucnced with big fanfare. Later everything is classified, filed or curiously “lost”.
    As Brazilians say : it always ends up in a Pizza !

    But who are the ones electing these crooks ? YOUUUUUUUUUU……Brazilians ! Worse yet….you re-elect them !

    On earth, more masochists than Brazilians…….there is not !!!!!

  • Brazilian Dude

    Up and running…
    is a nice way to put it.Angra I is laughingly known as “vaga-lume” (firefly) by the professional community, due to its intermitent track record.
    Even plants that run themselves need overview operators and maintenance teams, as well as replacement material, constant personnel updating, safety training protocols…
    All of that involves money (lots of it), as well as the original construction itself. I just can’t see our public system NOT siphoning off cash into pockets by cutting corners.It’s too tempting. Especially since the actual bosses will be political apointees, not professionals. They won’t really understand the potential consequences of their acts, believing that luck will hold out. I have seen a few deaths due to that in other areas.(besides congonhas).
    “How can anybody be so stupid as to trust in luck with something as serious as a nuclear power plant? “, you might ask yourself.
    The same can be said of airplanes.Everybody knows a monor slip will end in major consequences, except public service flunkies.They are used to covering up mistakes and deficiencies and graft,and living in impunity.Eventually that breeds contempt for areas in which there is no such things, because they are technical and not political.
    Ever been in public service in Brazil?
    It’s much worse than you think.

  • Ceris

    In response
    Brazilian Dude, point taken. But there are two up and running already. And Brazil has no where near the amount of corruption present in the Soviet Union during the time of the Chernobyl disaster. With the new reactor technology available, they basically run themselves. I am serious!!

  • Brazilian Dude

    Besides, in this govt.
    PetrobrÀƒ¡s has specialized in bending over and gladly getting proper buggered by Morales and his dominatrix, Chavez.A sad situation for our country – and for BR shareholders.

  • Brazilian Dude

    If this were a serious country…
    I’d agree with you. But imagining nuclear plants in our currupt, sleazy system full of irresponsible politicians which appoint their “afilhados” to essential technical jobs is seeing a tropical Chernobyl in the making.Can you imagine a country that can’t keep the air travel system safe going on to making nuclear power plants? Remember Congonhas!

  • Ceris

    Possiblility of Nuclear
    Hello to anyone with an opinion,

    Do you think that this push for more energy investment might lead to more nuclear reactors in Brasil? I think it is a great option for some regions. It would be nice to see some investment in that area instead just oil and gas. Both air polluters and exhaustible resources. Would like to hear Brasilians views…

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