Offshore staff

(Brazil)- In an attempt to increase its energy production, Petrobras recently announced plans to invest $87.1 billion between 2007 and 2011. The target production level at the end of this period is 3.49 MMb/d, and includes crude, condensate and natural gas.

This five-year plan is considered the first step in the company's larger plan to expand energy production to 4.55 MMb/d by 2015.

Some $75 billion, or 86%, of the total will be invested in Brazil, while the remaining $12.1 billion will go into foreign projects. About 70% of the foreign investment will go into E&P projects in West Africa and the GoM.

Total investment in the new 5-year plan represents a 66% increase over the 2006-2010 plan, Petrobras said in a statement to shareholders. "In general terms, the 2007-2011 business plan maintains the company's aggressive goals for growth," Petrobras said.

Petrobras is the largest company in Brazil and is run by the Brazilian government; however, it lists its shares and bonds on the stock exchanges in New York, Madrid, and Sao Paulo.

Last month, President Luiz Inacio Lula da Silva vowed that Brazil was going to be a major crude exporter and join OPEC. Lula highlighted his country's "self-sufficiency," achieved by Petrobras' aggressive production agenda. The company now produces as much oil as Brazil consumes domestically, approximately 1.8 MMb/d.

Petrobras has proven oil and natural gas reserves equivalent to more than 11 Bbbl. Of these reserves, some 10.57 Bbbl are in Brazil and about 1.25 Bbbl are in the other eight countries in which Petrobras operates.

07/06/2006