
Petrobras to invest US$174bn in 2009
By Fábio Palmigiani / Business News Americas
Published: Saturday, January 24, 2009 16:50 (GMT -0400)
Brazil's federal energy company Petrobras (NYSE: PBR) plans to invest US$174.4bn in 2009-13, company CEO José Sérgio Gabrielli said late Friday.
The investment breakdown includes E&P (US$104.6bn), downstream (US$43.4bn), gas and energy (US$11.8bn), petrochemicals (US$5.6bn), corporate (US$3.2bn), distribution (US$3bn) and biodiesel (US$2.8bn).
"We are working with a very solid portfolio of projects to reach that investment, however, we believe those numbers still reflect a situation when oil prices were very high," he told journalists in Rio de Janeiro at the company's headquarters.
"We want to reduce those investment numbers in the future because we want to accomplish all our projects with smaller costs," he added.
Petrobras plans to adopt a series of measures to reduce its cost structure, including making changes to platforms tenders.
"The fallout in oil prices must occur in the entire productive chain," according to Gabrielli.
The company is planning its projects using average Brent prices of US$42/b.
PRE-SALT INVESTMENTS
Petrobras plans to invest US$28bn in the five-year period to develop the pre-salt layer, the executive said.
The amount is part of the US$104.6bn investment laid out for the E&P segment, which represents a 61% increase compared to the previous US$65.1bn in the US$112.4bn investment plan for 2008-12.
"We have new projects in the plan totaling US$47.9bn," Gabrielli said.
Pre-salt output is forecast at 219,000b/d in 2013, increasing to 582,000b/d in 2015 and to 1.82Mb/d in 2020.
"Those projections take into account the knowledge we have at the moment of the pre-salt reservoirs. Our goal is to develop new production ways to reduce exploration costs in the pre-salt layer," the Petrobras CEO said.
Besides the Tupi pilot project scheduled for 2010, Petrobras will implement three new production systems for the Santos basin: Tupi 1 and Guará 1 in 2012 and Iara 1 in 2013.
OIL PRODUCTION
The company expects oil and natural gas production, including international operations, to increase in coming years.
Petrobras ended December 2008 with a total production of 2.4Mboe/d and expects output to rise to 3.65Mboe/d in 2013, to 4.63Mboe/d in 2015 and to 5.73Mboe/d in 2020.
2009 NUMBERS
Petrobras plans to invest roughly US$28.6bn in 2009 and will need US$18.1bn in financing, according to Gabrielli.
"We already raised US$16.9bn for this year from [national development bank] BNDES and a pool of international and national banks," he added.
The 2009 plan considers an average price of US$37/b for oil prices.
BNamericas will publish more information on Petrobras' strategic plan on January 26 when the company will host another press conference to give more details about the investments.
By Fábio Palmigiani / Business News Americas
Published: Saturday, January 24, 2009 16:50 (GMT -0400)
Brazil's federal energy company Petrobras (NYSE: PBR) plans to invest US$174.4bn in 2009-13, company CEO José Sérgio Gabrielli said late Friday.
The investment breakdown includes E&P (US$104.6bn), downstream (US$43.4bn), gas and energy (US$11.8bn), petrochemicals (US$5.6bn), corporate (US$3.2bn), distribution (US$3bn) and biodiesel (US$2.8bn).
"We are working with a very solid portfolio of projects to reach that investment, however, we believe those numbers still reflect a situation when oil prices were very high," he told journalists in Rio de Janeiro at the company's headquarters.
"We want to reduce those investment numbers in the future because we want to accomplish all our projects with smaller costs," he added.
Petrobras plans to adopt a series of measures to reduce its cost structure, including making changes to platforms tenders.
"The fallout in oil prices must occur in the entire productive chain," according to Gabrielli.
The company is planning its projects using average Brent prices of US$42/b.
PRE-SALT INVESTMENTS
Petrobras plans to invest US$28bn in the five-year period to develop the pre-salt layer, the executive said.
The amount is part of the US$104.6bn investment laid out for the E&P segment, which represents a 61% increase compared to the previous US$65.1bn in the US$112.4bn investment plan for 2008-12.
"We have new projects in the plan totaling US$47.9bn," Gabrielli said.
Pre-salt output is forecast at 219,000b/d in 2013, increasing to 582,000b/d in 2015 and to 1.82Mb/d in 2020.
"Those projections take into account the knowledge we have at the moment of the pre-salt reservoirs. Our goal is to develop new production ways to reduce exploration costs in the pre-salt layer," the Petrobras CEO said.
Besides the Tupi pilot project scheduled for 2010, Petrobras will implement three new production systems for the Santos basin: Tupi 1 and Guará 1 in 2012 and Iara 1 in 2013.
OIL PRODUCTION
The company expects oil and natural gas production, including international operations, to increase in coming years.
Petrobras ended December 2008 with a total production of 2.4Mboe/d and expects output to rise to 3.65Mboe/d in 2013, to 4.63Mboe/d in 2015 and to 5.73Mboe/d in 2020.
2009 NUMBERS
Petrobras plans to invest roughly US$28.6bn in 2009 and will need US$18.1bn in financing, according to Gabrielli.
"We already raised US$16.9bn for this year from [national development bank] BNDES and a pool of international and national banks," he added.
The 2009 plan considers an average price of US$37/b for oil prices.
BNamericas will publish more information on Petrobras' strategic plan on January 26 when the company will host another press conference to give more details about the investments.