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Petrobras to maintain E&P spend in 2018

Written by  Thursday, 21 December 2017 12:04

Petrobras has released its new 2018-2022 business plan, in which the Brazilian giant has promised to maintain about the same level of investments in exploration and production (E&P) as it listed in last year's plan.

 Photo from OE/Audrey Leon.

Petrobras is planning total investments of US$74.5 billion, with 81%, or approximately $60.3 billion, going toward E&P. The 2017-2021 business plan called for 74.1 billion in total investments and 82% toward E&P, or $60.6 billion.

The Brazilian firm broke down the $60.3 billion E&P budgeting as follows: 77% toward production development ($46.5 billion), 11% toward exploration ($6.6 billion), and 12% toward infrastructure ($7.2 billion).

In regards to operating costs, Petrobras said it will continue its reduction efforts, and plans to spend $136.8 billion on operating expenses. It will also continue with its partnerships and divestment plans. Petrobras said the goal for 2017-2018 is $21 billion in divestments.

"These initiatives, coupled with an operating cash generation estimated at $141.5 billion, after dividends, will enable Petrobras to invest and reduce its indebtedness, without the need for new net funding for the (business) plan," the company said today (21 December).

Petrobras said it expects to produce 2.88 MMb/d of oil and natural gas in 2018, with 3.55 MMboe expected in both Brazil and abroad by 2022.

To meet those goals, the Brazilian giant has signed a few strategic partnerships in the last few months, notably with British supermajor BP and Norway's Statoil in October, and US supermajor ExxonMobil earlier this month (December). It has also taken on new partners. For example, Statoil, also this month, announced it would add 25% stake in the Roncador field, in the Campos Basin, operated by Petrobras.

Last week, Petrobras and its Libra consortium partners signed a contract for a new FPSO to be located at the newly branded Mero field (formerely Libra Northwest). The main Libra field achieved first oil in November this year.

The company along with Anglo-Dutch supermajor Shell led the auctions in October for pre-salt fields. Petrobras will serve as operator for three blocks awarded during the second and third rounds.

Read more:

Statoil adds Roncador stake

Libra outfit signs FPSO for Mero

Petrobras delcares 3.3 billion Mero field commercial

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