Brazil’s state-run oil company Petrobras has announced that its Board of Directors has approved the 2013-2017 Business & Management Plan (2013-17 BP), with investments of US$ 236.7bn, maintaining the same level of investments as last year’s Plan.
The oil company will spend the largest part of the allocated sum on exploration and production. The E&P budget has been set at 147,5 billion, representing a 62% of the total amount of the budget.
The new E&P budget represents an increase of US$ 15.9bn from 2012-16 BP, mainly due to the inclusion of 2017 investments that reflect the acceleration of planned production between 2016 and 2020.
Petrobras has explained that 73% of the E&P investment total will be allocated to production development, 16% to exploration and 11% to infrastructure. Pre-salt and Transfer of Rights investments correspond to 68% of the total amount invested in production development.
In addition to these investments, the execution of projects during the 2013-17 BP will demand from Petrobras’ partners US$ 39.7bn for E&P activities in Brazil.
The oil giant said the funds for projects under implementation will come from operating cash flow generation (US$ 164.7bn), use of surplus cash (US$ 10.7bn), divestment and financial restructuring (US$ 9.9bn) and debt (US$ 61.3bn gross, US$ 21.4bn net) .