Petrobras to raise outlays under 5-year plan

Brazil's Petrobras reported plans to spend $112.4 billion under its 2008-12 business plan.

Aug. 14, 2007

Eric Watkins
Senior Correspondent

LOS ANGELES, Aug 14 -- Brazil's state-run Petroleo Brasileiro SA (Petrobras) reported plans to spend $112.4 billion under its 2008-12 business plan, with $97.4 billion earmarked for developments in Brazil and the remaining $15 billion going into overseas investments—mainly in the Gulf of Mexico, West Africa, and Latin America.

About $65.1 billion will be dedicated to oil and gas exploration and production. Petrobras said Brazilian production is expected to rise to 3.1 million boe/d in 2012 from 2.1 million boe/d in 2006. Combined Brazilian and overseas oil and gas output is expected to rise to 3.5 million boe/d in 2012 from 2.3 million boe/d in 2006.

In refining, Petrobras said it aims to process 2.1 million b/d of oil in 2012. Including overseas refineries, Petrobras plans to process 2.4 million b/d of oil in 2012, up from a total of 1.9 million b/d in 2006.

Looking to alternative fuels, in 2012 Petrobras expects to process 1.6 million cu m of its new H-Bio fuel, a diesel with vegetable oil blended in at the refinery. Also in 2012, Petrobras intends to produce 938,000 cu m/year of biodiesel and to export 4.8 million cu m of ethanol.

Contact Eric Watkins at [email protected].