Brazil’s Petrobras Lowers Investments in the Next Four Years to US$ 138 Billion

Petrobras Movigas Petrobras, the Brazilian state-controlled oil and gas multinational, disclosed that its board of governors approved, in a meeting in Brazilian capital Brasília, the updating of the project portfolio for the 2011/2014 period, which forecasts investment of up to 250 billion Brazilian reais (US$ 138 billion). 

The volume of investment is lower than the 265 billion reais (US$ 146 billion) approved in the previous meeting and disclosed on the 19th of this month, together with the 2009 balance sheet.

The statement shows that the values approved were included in the Growth Acceleration Program (PAC-2) also announced by the government of Brazil forecasting investment of almost 1 trillion reais (US$ 550 billion).

Petrobras informed that the council also approved, for the period after 2014, a set of projects that total investment of approximately US$ 254 billion, also included in the PAC 2.

According to the company, the projects were evaluated based on a preliminary vision, considering the level of current knowledge, aligned to the company’s Vision 2020 Strategic Plan.

“Part of the investment for the post 2014 period represents the continuation of projects that are already considered in the 2010 – 2014 plan, which have maturity periods greater than the five years of the Business Plan, with special attention to exploration and production projects,” shows the company statement.

In Exploration and Production, investment should total US$ 85 billion from 2011 to 2014, a volume that should grow to US$ 221 billion in the period after 2014, totaling US$ 306 million.

The second main area in terms of investment is Supply and Refining, Transport and Trade and Petrochemicals: from 2011 to 2014 investment should reach US$ 44 billion, dropping to US$ 32 billion in the period after 2014, totaling US$ 76 billion.

According to figures disclosed by Petrobras, investment in the area of Exploration and Production (E&P) is aimed at increasing production of oil and natural gas, making use of the exploratory success reached in the post- and pre-salt layers and also including a furthering of exploratory activities, essential to company sustainability.

Investment in the area of Refining, Transport, Trade and Petrochemical sectors is aimed at increasing the production of oil products to supply the growing demand on the domestic market, adding value to the oil produced, increasing the company margins, and also allowing the export of petrochemicals.

In the Petrobras press statement, the company also disclosed that investment should be made in the improvement of the quality of oil products, complying with more rigorous international and environmental standards.

The plan also forecasts investment in new ethanol and biodiesel factories and infrastructure for the transfer of ethanol production.

ABr

Tags:

You May Also Like

Brazilian Congress’s Windows, Computers and Furniture Smashed by Protesters

Hundreds of landless farm workers in Brazil briefly invaded the lower house of parliament ...

Brazil and LatAm Pressed to Turn Commodities Boom Into Way Out of Poverty

Latin America is poised to enjoy exceptionally high prices for its exports during the ...

Brazil’s Lula Signs Bill Making Corruption Heinous Crime

Brazilian president Luiz Inácio Lula da Silva said this Wednesday, December 9, during a ...

After Prison Will Brasília’s Ex-Governor Go on Trial?

After two months in prison, the ex-governor of Brasília is again a free man. ...

Brazil Take Japanese Road on Digital TV

Brazil’s Minister of Communications, Hélio Costa, informed that a technical agreement was signed on ...

Brazilian President in London as Ambassador for 2014 World Cup and 2016 Olympics

Brazilian president Dilma Rousseff travels to London this Tuesday afternoon where she will  have ...

Brazil’s Northeast: The Largesse of the Destitute

Severina Ferreira do Nascimento, 71, is next in line. When her name is called, ...

They Are a Brazilian Ensemble, But You Wouldn’t Know by Their Middle-Eastern Sounds

Six musicians from the southeastern Brazilian state of Minas Gerais decided to bring the ...

Brazil to Get 4th Spot as IT Outsource for US

Three-quarters of U.S. companies outsourced some or all of their information technology activities in ...

Foreign Direct Investment in Brazil Doubles in 2007 to US$ 35 Billion

Brazil's share of foreign direct investment (FDI) stood at US$ 886 million last December, ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`