Petrobras increases 2023 oil, gas production guidance

Petróleo Brasileiro SA (Petrobras) has increased its 2023 oil and gas production guidance based on its third-quarter production.

The operator increased its full-year 2023 oil and gas production guidance to 2.8 MMboe/d from 2.6 MMboe/d, its commercial production guidance to 2.4 MMboe/d from 2.3 MMboe/d, and its oil and NGL production guidance to 2.2 MMboe/d from 2.1 MMboe/d. The increases are due to company performance in third-quarter 2023 and forecasts for ramp-ups and new wells in this year’s fourth quarter, Petrobras said in a release Nov. 10.

In this year’s third quarter, average production of oil, NGL, and natural gas reached 2.88 MMboe/d, 9.1% higher than in second-quarter 2023. Production in pre-salt reached a new quarterly record of 2.25 MMboe/d, equivalent to 78% of Petrobras' total production, surpassing the previous record of 2.06 MMboe/d in second-quarter 2023. Total operated production by Petrobras also reached a record with 3.98 MMboe/d in the same period, 7.8% above this year’s second quarter.

Total 2023 CAPEX guidance is $13 billion, an increase of more than 30% compared with 2022, but a reduction from previous 2023 guidance of $16 billion. The reduction is due to lower spending than planned on exploration and production, which declined to $11.2 billion from $13.3 due to supply market challenges in the post-pandemic inflationary context, the operator said.