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US$235.5 Billion Petrobras Spending Plans

London announcement outlines goals for doubling oil production, expanding Brazil’s offshore sector

Posted on November 26, 2012

Petroleo Brasileiro SA Petrobras has laid out its latest growth projections for oil production, as part of a five-year plan that sees international partners as integral to developing the shipbuilding expertise required to expand Brazil’s offshore sector.           

Eduardo Autran, Petrobras executive manager of Supply and Logistics, outlined the company’s development plan at the Royal Institution of Naval Architect’s annual Presidents Invitation Lecture in London on November 21.

Over 150 representatives of the global maritime industry heard Autran reveal spending plans for both upstream and downstream activities from 2012 to 2016, including a fleet expansion program that will see the Petrobras fleet grow from 287 ships at the end of 2010, to 433 ships by 2017.

As a result of the major investment program, Autran said that Petrobras will double its oil production and its crude oil reserves, increase its refining capacity by 70% and see a 50% increase in its market. Petrobras said it would continue to cultivate local suppliers as a key source for its vessels and equipment procurement plans. However, Autran emphasized that local yards and other offshore industry would also continue to seek expertise from international partners to ensure that targets are met.

There are already 47 yards in operation in Brazil with a further 11 yards under construction. Some 62 000 workers are directly employed in the industry, which has an order book totaling 6.8m dwt, and orders for 19 offshore oil platforms and a further 21 deep sea rigs.

“The major challenge is to increase the local content for these orders,” Autran said. “For that, there is a need for human resources – the people with the skills to meet the demand from an expanding industry.”