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Petrobras of Brazil Hikes Exploration, Production Budget

March 19, 2013

Petrobras of Brazil Hikes Exploration, Production Budget

Petrobras of Brazil said 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.

Of the total Plan, US$ 207.1 bn of investments are classified as under implementation.

As a continuation of the 2012-16 BP, the 2013-17 BP was based on the following principles:

  • Maintaining the same production targets for oil & natural gas production;
  • No additional projects, except those related to oil & natural gas exploration and production in Brazil;
  • Incorporating the results of the structural support programs: PROCOP, PROEF, PRCPoço and INFRALOG;
  • Expanding the scope of the divestment program (PRODESIN).

Table

The 2013-17 BP maintains the project management practice of separating projects into four phases according to their maturity. The portfolio of projects under implementation amounts to US$ 207.1bn and includes all Phase IV projects that have already been contracted, and all E&P projects in Brazil. The portfolio under evaluation, with US$ 29.6bn, encompasses projects of other business areas that are currently in Phase I (opportunity identification), II (conceptual project) and III (basic project) which, in order to proceed to the implementation phase, must have their technical and economic feasibility confirmed (Phase III approval).

The analysis of the 2013-17 BP portfolio resulted in the maintenance of 2012-16 BP projects for the 2013-17 period, without including or excluding new projects in the portfolio under implementation, except for cases of E&P in Brazil where, in order to meet planned production targets, there were inclusions and exclusions as well as accelerations and postponements of projects.

All 2013-17 BP projects incorporate the use of S-Curves and projections are based on an analysis of executing these curves. The S-Curves are closely monitored by the Executive Board in order to ensure that the Plan’s targets are met.

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LNG World News Staff, March 19, 2013; Image: Petrobras