Petrobras plans more investment in E&P, less in refining

14 June 2012 22:28  [Source: ICIS news]

MEDELLIN, Colombia (ICIS) --Brazilian state-run oil company Petrobras plans to boost investment in exploration and production with a $236.5bn (reais R490bn, €187bn) five-year investment plan announced on Thursday.

The new spending programme will earmark more money for exploration and less for refining, reinforcing a shift toward the more profitable activities, according to Petrobras.

Under the guidelines of the plan, Petrobras will invest 60% of total capital expenditures in exploration and production, or $141.8bn over the five years.

Refining, transport and sales activities will account for 27% of total investment or $65.5bn under the 2012-2016 plan. No target for refining output was given.

The refining expansion projects Abreu e Lima refinery and Comperj, are projected to start operations in 2016 and are in the implementation phase, Petrobras said.

Petrochemical investment will account for 2.1%, or $5bn of the total budget over the five years, while the biofuel sector is set at 1.6% of the budget. The biofuels segment plans to spend $3.8bn, of which $1.9bn is allocated to projects under construction and future acquisitions.

It is the first plan to be announced by chief executive Maria das Graças Foster, a career Petrobras employee, who was appointed in January and is widely believed to be more of a technocrat than her predecessor, former university professor José Sergio Gabrielli.

($1 = R2.07) 
($1 = 0.79)

By: Leela Landress
+1 713 525 2653

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