Petrobras plans 55% increased investment in 2009-13

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Jan. 26 -- Brazil's Petroleo Brasileiro SA (Petrobras), shrugging off concerns over the current global financial crisis, reported that it will spend $174.4 billion as part of its 2009-13 business plan.

Petrobras Chief Executive Jose Sergio Gabrielli—who called the company's spending plans "robust and important" —said investment for the period averages some $34.9 billion/year of investment and represents a $62.4 billion increase over its 2008-12 draft plan submitted to legislators last August.

Company officials said increased spending in the 2009-13 business plan included a 71% increase for exploration and production spending, and 46% more for downstream activities.

Petrobras said that revision of the plan from the earlier draft "incorporated the new global economic and financial scenario, and included its effects on oil prices, among other variables."

Under the new plan, the greatest investment will be for exploration and production, $104.6 billion; followed by downstream, $43.3 billion; gas and other energy development, $11.8 billion; petrochemicals, $5.6 billion; distribution, $3.2 billion; and biofuels $2.8 billion.
Under the new plan, the country's oil production goals are for 2.68 million b/d in 2013, 3.340 million b/d in 2015, and 3.920 million b/d in 2020.

In addition to the Tupi Pilot System, scheduled to go on stream in 2010, Petrobras said it plans three production systems in the Santos basin's presalt area: Tupi and Guará 1 in 2012 and Iara 1 in 2013.

"Including natural gas, domestic production is planned to reach 3.310 million boed in 2013, about 4.140 million boed in 2015 (685,000 boed more than the goal set by the 2008-12 business plan), and 5.1 million boed in 2020.

In refining, Petrobras expects domestic output to reach 2.270 million b/d in 2013. It said operations at the Abreu e Lima refinery in the State of Pernambuco are scheduled to go online in 2011; production is planned to start at the Comperj petrochemical plant in 2012. In addition, the Premium I refinery is to go on stream in 2013 and the Premium II refinery in 2014.

Among the new projects, about $28 billion are aimed at developing the presalt area, with production targets set at 219,000 b/d in 2013, about 582,000 b/d in 2015, and 1.815 million b/d by 2020. In 2013, Petrobras expects presalt natural gas production available for sale to be 7 million cu m/day, while in 2020 it will reach some 40 MM cu m/day.

Contact Eric Watkins at hippalus@yahoo.com.

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