Brazil’s state-run Petroleo Brasileiro SA (Petrobras) has approved its 2012-16 business plan with investments totaling $236.5 billion and averaging $47.3 billion/year.
The exploration and production segment in Brazil will invest $131.6 billion; 69% will be allocated to production development, 19% to exploration, and 12% to infrastructure. Investment in the presalt cluster will account for 51% of total E&P investment.
The downstream segment has investments of $51.7 billion for the projects under implementation. The refining capacity expansion projects to come into operation by 2016 include the Abreu and Lima refinery and the first phase of Comperj, already in the implementation phase.
The plan allocates $7.8 billion to the gas and energy segment for projects under implementation. The biofuels segment will receive $3.8 billion, including $1.9 billion allocated to projects under implementation and acquisitions.
About $6 billion will be invested internationally in projects under implementation, concentrating on E&P activities, which represent 83% of total investments. In addition to the $236.5 billion, Petrobras’s partner companies are set to invest $34 billion in E&P activities during 2012-16.
Operating cash flow generation will remain the principal source of financing for the company’s investments. The amount of divestments and asset restructuring was increased in the plan and now totals $14.8 billion, with emphasis on divesting foreign assets.
Oil and NGL production in Brazil is expected to reach 2.5 million b/d in 2016. Most production growth is expected to occur from 2014 onward, with an annual estimated increase of 5-6% from 2014-16. For 2012-13, the company expects to maintain the same production levels as in 2011. In 2020, the company expects to produce a total of 5.2 million boe/d in Brazil, raising the overall total including foreign output to 5.7 million boe/d.