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Brazil’s state-run oil company, Petrobras, could spend $100 billion on investments in projects it is currently analyzing and already committed to, a Reuters source suggested on Friday.
Petrobras is set to issue its five-year plan that will cover 2024 through 2028. For now, the plan is still being discussed, but an anonymous Reuters source is suggesting that the plan could include $100 billion in investments.
In August, Petrobras CEO Sergio Caetano Leite said that the company’s investments spelled out by its up-and-coming five-year plan could be 10% higher than the previous plan, which would have placed the total investments around $86 billion—of which $1-$4 billion would be for new projects. Petrobras said that low-carbon projects would account for a large part of the investment increase.
The plan is due to be released by the end of the year.
The five-year plan approved last year includes expenditures of $78 billion.
Brazil has seen year-over-year growth of oil production and has the potential to increase its production to become the world’s fourth-largest oil producer.
Petrobras reported a 41.5% decline in Q3 profits this year, missing analyst estimates, although it still expects its full-year oil and gas output to be higher than previously estimated, at 2.4 million boepd, up from 2.3 million boepd last year.
The company has plans to boost the number of producing wells in Q4. Capex for this year is expected to hit $13 billion, a 30% increase on last year. It is on track, however, to miss projections of a $16 billion capex this year.
In July, Brazil’s oil and gas production hit the highest level ever for a single month, with production totaling 4.48 million boepd in the period, according to Brazil’s oil regulator ANP.
By Julianne Geiger for Oilprice.com
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.