Petrobras plans to spend $224.7 billion to 2015

Offshore staff

RIO DE JANEIRO – Petroleo Brasileiro SA has approved a 2011-2015 business plan that calls for spending of $224.7 billion.

This total reflects more exploration and production segment participation, going to 57%. New projects in E&P account for 87% of total new projects spending. About 95% of the total spending is to be in Brazil.

The E&P segment spend will total $127.5 billion, $117.7 billion of which will be allocated to Brazil, 65% for production development, 18% for exploration, and 17% for infrastructure. The pre-salt areas will absorb 45% of the total E&P investment in Brazil and approximately 50% of the total amount allocated for the production development. The participation of the pre-salt in the total oil domestic production will increase from 2% in 2011 to 40.5% in 2020.

Petrobras says it plans to drill 10 exploratory wells in the Transfer of Rights area, which will also see the start-up of the first extended well test in the Franco 1 block, followed by an FPSO with a production capacity of 150,000 boed in 2015.

The company also plans to accelerate the Varredura project, which is designed to map exploratory opportunities in Campos basin carbonate reservoirs that can take advantage of existing infrastructure. To date, 284 prospects have been mapped in the Espírito Santo and Campos basins and the discoveries in these areas have already presented an estimate of recoverable volumes of at least 2,235 MMbbl.

07/25/2011