Eric Watkins
Oil Diplomacy Editor
The board of Brazil's state-run Petroleo Brasileiro SA (Petrobras) approved a $224.7 billion, 5-year investment plan, with about 57% of the projected outlays to be spent on exploration and production.
E&P spend will total $127.5 billion, of which $117.7 billion will be allocated to Brazil, 65% for production development, 18% for exploration, and 17% for infrastructure.
The presalt areas will absorb 45% of the total E&P investment in Brazil.
Petrobras Chief Executive Officer Jose Sergio Gabrielli de Azevedo said the projected E&P investment will increase Petrobras's production to 6.4 million boe/d in 2020 and 4 million boe/d in 2015 from the current 2.7 million boe/d. "Presalt output alone will add up to almost 2 million boe/d in 2020," Gabrielli said, noting that the presalt's contribution to production will rise to 40.5% in 2020 and 18% in 2015 from the current 2%.
Gabrielli said the growth in output from the presalt reserves will be achieved by setting up 30 extended well tests (EWTs) over 5 years, including 20 in the presalt cluster, and 10 in the postsalt area.
New projects
Gabrielli drew attention to Petrobras's E&P Scanning Project, which is designed to detect recoverable volumes of oil in producing fields, such as Marimba, Marlim Sul, Pampo, Barracuda, Caratinga, Marlim, Marlim Leste, Albacora, and Albacore Leste.
The company plans an $8.7 billion increase in investments for new E&P projects, including production facilities for presalt areas.
"New technologies will increase efficiency in E&P processes and boost output," Gabrielli said. Petrobras will invest around $1.3 billion/year in exploring new frontiers, oil recovery, developing new offshore and undersea production systems, logistics solutions for gas, and in technology designed to boost refining flexibility and diversify.
Gabrielli noted investments planned to improve energy efficiency and cut greenhouse gas emissions "through voluntary commitments to reduce gas flaring in E&P operations and decrease energy intensity at refining and gas and energy plants, among other initiatives, with investments totaling $1.2 billion by 2015."
For refining, transportation and trade, and petrochemicals, the plan calls for a total of $74.4 billion in investments by 2015. "Investments slated to increase refining capacity will primarily meet the expanding needs of the Brazilian market," he said.
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