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Oil and gas production in 2012 down 1%, says Petrobras

29th October 2012

Petrobras’ total oil and gas production down 1 per cent in the first nine months of 2012

Oil and gas production in 2012 down 1%, says Petrobras
In order to boost pre-salt exploration Petrobras will have to turn to the selling of some of its foreign assets

Petrobras’ total oil and gas production in Brazil and abroad dropped 1 per cent in the first nine months of 2012, the company announced last week, in part due to the natural decline in production and a difficulty in financing pre-salt investments.

Petrobras’ total petroleum and natural gas production hit a daily average of 2.592 million barrels of oil equivalent (boe) in the first nine months of 2012, 1 per cent less than in the same period last year, the company said in a report. In Brazil alone, production reached 1.98 million boe, 2 per cent less than in the first nine months of 2011.

The overall reduction was caused in part by operational stoppages and a natural decline in production, particuarly in the Campos Basin. Petrobras expects production to pick up in the last quarter of 2012, although the recent news will likely prompt analysts to view the oil giant’s goal to reach a production of 5 million barrels per day by 2020 with skepticism.

Most of this production is expected to come from new offshore areas to be explored in the coming years, particularly new pre-salt areas which are due to go on auction next year.

In order to boost pre-salt exploration  Petrobras will have to turn to the selling of some of its foreign assets, a move predicted to generate USD 14.8bn for direct E&P investment in the pre-salt, under the firm’s 2012-2016 business plan.

However, roughly two months off from the new year, Petrobras has yet to sell any of its foreign assets, which include blocks in the Gulf of Mexico, the US and Argentina, in addition to refineries in Japan and the US.

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