Wednesday, February 26, 2014

Brazil: Petrobras Plans to Be Included in Top Five Oil Producers by 2030

According to The Latin American Tribune, energy giant Petrobras has formulated a goal for itself to become among the world’s top five largest oil companies by 2030.

“Our goal is to be one of the five biggest global oil producers,” Petrobras CEO María das Graças Foster said during a teleconference in which she provided details on the company’s newly approved 2030 strategic plan.

Petrobras will achieve oil output of 4 million barrels per day in 2020, she said.

The company’s business and management plan for 2014-2018, which was also approved Tuesday (February 25) by Petrobras’ board and calls for a total investment outlay of $220.6 billion, forecasts oil production of 4.2 million bpd by 2020.

Petrobras’ refining capacity, meanwhile, is expected to rise from 2.12 million barrels per day in 2013 to 3.9 million bpd in 2030.

COMMENT: “With these increases, Brazil will guarantee its self-sufficiency in oil in 2015, when crude will no longer need to be imported, and self-sufficiency in oil derivatives in 2019, when it will no longer need (to maintain) its current (level of) growing diesel imports,” Foster said.

“Petrobras invested 104.4 billion reais ($44.43 billion) last year, up 24% from 2012 and the biggest outlay in the company’s history,” Foster said.

Some 94.6 billion reais ($40.26 billion) is to be invested this year, a drop of 9% compared to 2013.

Petrobras’ latest strategic plan takes into account new variables, including an expected slowdown in global oil demand, the United States’ potential self-sufficiency in natural gas in 2019 and the increase in non-conventional gas production.

The executive said the company’s results last year, when its net income rose 11% to 23.57 billion reais ($10.07 billion), were “very encouraging.”

In particular, Foster touted the 46 discoveries made in 2013 that lifted Petrobras’ proven reserves to 16.6 billion barrels.

The pre-salt, a massive, recently discovered oil frontier so-named because its reserves are located under water, rocks and a shifting layer of salt at depths of up to 7,000 meters (22,950 feet) below the surface of the Atlantic, is a focus of Petrobras’ investment plan and could vastly increase Brazil’s proven reserves and turn the country into a major crude exporter.