Petrobras approves five year plan.


Brazil's state-owned oil producer, Petrobras, is set to invest more than $220bn over the next five years.

Petrobras logoThe company announced the approval of it's five year plan and, in doing so, is continuing its path towards significant growth.  In particular, the company is aiming to boost Brazil's overall economic outlook by helping to meet the country's increase demand for oil.

Amongst the highlights of the plan, Petrobras is aiming to increase exploration and production (E & P) by 57%; concentrate new projects around E&P, in particular pre-salt and transfer rights agreements; dispose of some $13bn of assets and double the company's proved reserves.

The plan will require financing, with Petrobras needing to find between $7.2bn and $12bn annually to fund the proposed activities.  The majority of the investment will be placed in domestic projects, with just five percent, or $11bn, being spent outside the country.

After E&P, refining, transportation and marketing will take one third of the spend followed by gas and power projects (6%). Biofuel activities receive a boost with around $4bn targeted in this area, about $0.5bn up on the previous plan.