Home Business Petrobras Says Oil Production in Brazil Should Grow 10 Percent in 2019

Petrobras Says Oil Production in Brazil Should Grow 10 Percent in 2019

State-owned enterprise released the 2040 Strategic Plan and the 2019-2023 Business and Management Plan on Wednesday

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Petrobras pointed out that in 2019 oil production growth will be 10 percent in Brazil and 7 percent in other regions. The figures were released on Wednesday, 5, in the company’s 2040 Strategic Plan and Business and Management Plan 2019-2023.

For the period between 2020 and 2023, total production of oil and natural gas will grow at an average rate of 5 percent per year, according to the company.

Still, on production, Petrobras said continued cost efficiency and pre-salt extraction costs of less than US $ 7/boe will drive the average extraction cost to levels below US $ 10/boe from 2020.

In the document, the state company also confirmed refining repositioning through partnerships in the Northeast and South clusters, which represent 40% of the refining capacity installed in Brazil, allowing the sharing of business risks and the establishment of a more dynamic sector, competitive and efficient, as well as generating liquidity for the company.

Investments in the period will be 12.9% higher than in the period 2018/2022 Petrobras forecasts investments of US $ 84.1 billion in the period between 2019 and 2023. The figure represents a growth of 12.9% compared to the Business and Management Plan 2018-2022, released last year, which provided for total investments of US $ 74.5 billion for the period.

In detailing the numbers, the company said that $ 78.4 billion goes to the exploration and production and refining, transportation, and marketing, sector considered central of competitiveness. For gas and energy, in addition to the petrochemical business, US $ 5.3 billion will be contributed. Alternative energies such as wind, solar and biofuels will receive $ 400 million.

Regarding the new energy sources, the company said it will seek partnerships in renewable energy businesses, as a new engine for generating value with a focus on the company’s sustainable future. According to the company, the focus on oil and gas will give more room for other energy sources.