By an OGJ Online Correspondent
RIO DE JANEIRO, Feb. 22�Petroleo Brasileiro SA (Petrobras) will invest $29.4 billion (82% in the domestic market and 18% abroad) by year 2005 to become self-sufficient in crude oil production, said the company's president Henri Philippe Reichstul.
He said 89% of the investments will come from Petrobras's own financial resources and international loans. The remaining 11% will be accrued from project finance.
The target is to increase oil production from 1.3 million b/d now to 1.9 million b/d by 2005.
To cut expenses, the company is working to reduce lifting costs from the present $3.60/bbl to $2.80 and refining costs from $1.02/bbl to 80�.
Petrobras imports 250,000 b/d of oil products and estimates that Brazil will import 500,000 b/d by 2005. "This justifies the construction of two new refineries, probably by the private sector," said Reichstul. Petrobras owns 11 of Brazil's 13 refineries.
This year Petrobras plans to complete 10 of the 30 gas-fired electric generating plants it will place in service by 2005. The 30 plants will cost $7 billion, most of it coming from the private sector.
