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Petrobras to invest USD 5.6bn in oil and gas efficiency upgrade - update

Brazilian oil giant open to big investment in order to raise production and exploration efficiency in Campos Basin

Petrobras to invest USD 5.6bn in oil and gas efficiency upgrade - update

Petrobras will allocate USD 5.6bn for an upcoming oil and gas efficiency upgrade in the Campos Basin, as part of the recently announced effort to raise energy output in the area back to record high levels.

The initiative will spur one of the Campos Basin’s operational units, the Campos Basin Operational Unit (UO-BC). Other units include the Rio Operational Unit.

The investment plan was announced during the official presentation on Monday of the program for upgrading the efficiency of the UO-BC by Petrobras’ exploration and production managers.

Some USD 5.6bn will be invested to upgrade UO-BC’s output. With USD 500m already included in the firm’s 2012-2016 Business Plan, the firm expects to raise an additional revenue of USD 1.6-3.3bn and to increase efficiency to 74 per cent this year.

“We are operating in a mature and complex basin which has been explored since the 80’s, and its production levels have been declining since,” E&P manager Solange Guedes said. “The aim of this program is to increase the operational efficiency of the area, because otherwise there will be an even greater decline in production”.

Operational efficiency is defined by measuring production in one moment in time against what could be produced in optimum conditions, Petrobras said. 

“With 31 active platforms, UO-BC’s output amounts to around 450,000 bpd,” a Petrobras press officer told OGT. “This accounts for approximately 25 per cent of Petrobras’ overall production.”

Arguably the backbone of the Brazilian giant’s energy output, UO-BC has suffered from a decline in production and exploration potential since 2009, which has raised concerns within the firm.

“In 2011 the operational efficiency index of the Campos Basin dropped to 71 per cent, whilst Petrobras’ overall average remained at 86 per cent,” the press officer added.

The efficiency of the UO-BC area currently sits at 72 per cent, down from 89 per cent in 2009. The firm hopes to raise the figure beyond its 2009 levels and reach 90 per cent by 2016.

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