Brazil’s government owned oil company Petrobras announced plans to invest US$ 56.4 billion in the next five years, most of it in Argentina, Venezuela and in the US areas of the Gulf of Mexico.
Petrobras CEO José Sergio Gabrielli indicated that the original target had been established at US$ 34.5 billion for the 2006/2010 period, but it was increased 64% given the global energy situation “a significant increase was needed to cover the growing costs of the oil production chain because of the surge in international prices of crude”.
“Our investments in South America are concentrated mainly in Argentina and Venezuela”, said Mr. Gabrielli who considered “marginal” any further investments in Peru, Ecuador and Bolivia.
A recent bill approved by the Bolivian government more than doubling oil taxes has irritated oil and gas corporations with investments in the landlocked country that concentrates South America’s main gas reserves behind Venezuela.
Petrobras in Argentina is involved in oil and gas exploration and production, refining, electricity, lubricants, fertilizers and gas and energy transport.
In Argentina, Petrobras US$ 3.9 billion investment plan has been increased to US$ 7.8 billion, mostly new projects not included in the original outlay.
According to an official Petrobras release, 87% of investments are concentrated in hydrocarbons exploration and production, of which 44% in Latinamerica, 19,6% in Africa and 20% in the Gulf of Mexico.
This article appeared originally in Mercopress – www.mercopress.com.