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2010-06-29

Petrobras' oil and gas production in Brazil and abroad up 2.1%

Source: Petrobras Agency

Date: 06/28/2010 09:18


Petrobras’ average oil and natural gas production in Brazil and abroad topped-out at 2,599,131 barrels of oil equivalent per day (boed) in May. This was 2.1% more than a year ago (2,546,553 boed), and at the same level as the total volume lifted last April (2,598,463 boed).


Only taking the fields in Brazil into account, the average oil and gas production was 2,351,993 boed. This is an increase of 1.8% over the same month in 2009, and remains stable compared to the volume produced in April this year (2,356,843 boed).


The exclusive oil production in domestic fields was 2,020,152 barrels per day, an increase of 1.5% over a year earlier, when 1,989,322 were produced, and 0.6% less than the previous month's mark (2,032,620 barrels/day), reflecting stability in production levels.


The volume of oil and natural gas coming from fields where Petrobras has operations abroad rose to 247,138 boed in May, 4.5% more than a year ago. Production going on stream at new wells in the Akpo and Agbami fields, both in Nigeria, contributed to this result. Compared to April 2010, the volume was 2.3% higher due to higher demand for Bolivian gas and to improved operating efficiency at the Agbami field.


Natural gas production in the domestic fields topped-out at 52.759 million cubic meters per day in May, practically the same as a month and a year earlier. Natural gas production abroad was 16.214 million cubic meters, 4.8% less than in May 2009 and 5.8% more than last April. The greater demand for Bolivian gas contributed to this positive result.


The schedule shows the production per Brazilian state and per region abroad in May 2010.

2010-06-25

Transpetro launches ship built in Rio

Source: Petrobras Agency

Date: 06/24/2010 17:00



Transpetro launched into the sea today (24) in Mauá Shipyard, the first ship built in Rio for the Program for Modernization and Expansion of the Fleet (Promef). The launch was attended by the Minister for Ports, Pedro Brito, the President in exercise of Petrobras, Maria das Graças Foster, and the president of Transpetro, Sergio Machado. The event marked the reunion of the state, birthplace of the shipbuilding industry in the country, with one of his economic vocations.


The ship was named Celso Furtado, in honor of the economist who participated in the creation of the Superintendency of Northeast Development (Sudene) and laid the foundations of the current cycle of economic growth. It is a vessel for transportation of light petroleum derivatives with a capacity of 48,300 deadweight tons and 183 feet long. Besides the launch of baptism and Celso Furtado, was also carried out the keel was laid in the second of four vessels ordered products in the shipyard Maua Promef, symbolizing the start of the new vessel.


The schedule for release of ships planned for this year began on May 7 last day in the Atlântico Sul Shipyard (PE), with Suezmax João Candido. The State of Rio, the largest and most traditional marine industry of the country, already has 16 ships ordered by Promef, with $ 2.2 billion in investments. The program will create at least 50.000 jobs in the state, being 10.000 directs and 40.000 indirects.


The Maua Shipyard, which will build four ships products Promef is located in Ponta D'Areia, Niterói, a region where the Brazilian shipbuilding industry was born in the nineteenth century by the hands of the Baron of Mauá. "This release has a great historical significance, since it was right there at Ponta D'Areia where the Brazilian tradition of building ships began. We are returning to this tradition, ", said the president of Transpetro, Sérgio Machado.


The ship Celso Furtado is the first commissioned by Rio at a yard Petrobras to be launched, 13 years after the last delivery. The latter had been Livramento, completed in 1997 by Eisa Shipyard. The ship had taken 10 years to complete, in the midst of a serious crisis in the industry. The Brazilian shipbuilding industry, which had been the second largest manufacturer worldwide in the 1970s, virtually disappeared from the radars of the 1980s.


With the commissioning of 49 vessels of Promef, one of the main projects of the PAC (Growth Acceleration Program), the yards have been modernized and emergence of new production units, such as Atlântico Sul Shipyard in Pernambuco.


Today, five years after the release of Promef, Brazil already has the fourth largest worldwide portfolio of orders for tankers. Across the country, the construction of 49 new ships Transpetro will generate about 200.000 jobs, both direct and indirect. Of the projected total, 46 vessels have already been auctioned, with 38 contractors. The final three ships of the program are in the final stage of bidding.


According to data from the National Union of Construction Industry and Shipbuilding and Repair Offshore (Sinaval), Rio de Janeiro concentrates more than 50% of the total productive capacity of the country, with ability to process 288,000 tons of steel per year.


Over 40% of direct jobs generated in the sector are in the state, which now has almost 25,000 employees. Before the creation of Promef, the Brazilian shipbuilding industry employed about 2000 workers around the country Today, that number now exceeds 46 000.


PROSPECTS FOR FUTURE DEMAND


Exploitation (studies and drilling for the discovery of reservoirs) and entry into production of the pre-salt fields opens important perspectives of orders for the Brazilian naval industry. Under the new Petrobras Business Plan (2010-2014), production of oil and gas nearly double, jumping from 2.7 million barrels oil equivalent per day in 2010 to 5.3 million barrels per day 2020 and greatly increasing the demand for shipping.


The pre-salt wells are located in deeper layers of the subsoil (six thousand meters deep), most are at least 250 km away from the coast. With this, the transportation of oil or gas produced and the supply of production platforms require innovative solutions for logistics.


Demands for the shipyards is still being quantified by Petrobras and Transpetro. Beforehand, it is known that the need for ships, platforms and production support boats will increase significantly over the first two phases of Promef, designed before the pre-salt discoveries.

2010-06-22

New Petrobras business plan expects to invest US$ 224 billion

Date: 06/21/2010 15:12


With investments totaling US$ 224 billion, Petrobras announces to market your Business Plan 2010-2014. Value that represents an average investment of $ 44.8 billion per year and an increase of 20% over the previous plan.

The Business Plan 2010-2014 foresees investments of 95% (US$ 212.3 billion) invested in Brazil and 5% (US$ 11.7 billion) abroad, placing significant investment with the market provider, with a rate totaling 67% local content, which means an annual level of recruitment in the country about US$ 28.4 billion.

In the area of technology, the business plan was based on three key challenges: (1) Expanding the Boundaries of new frontiers, the maximization of oil recovery, logistics solutions from pre-salt oil and gas, optimization of operational reliability and flexibility of refining capacity. (2) Value addition and product diversification, with innovation in fuels and lubricants, petrochemicals, gásquímica, biofuels and renewables. (3) and sustainability through the management of waters and tributaries of CO2 management and energy efficiency.

In the area of Engineering, the challenges will be overcome by reducing the complexity of designs and use of standardized solutions, and use of metrics in international projects to ensure our industrial competitiveness.

The segment of Exploration and Production (E&P) will receive investments of US$ 118.8 billion, an increase of 14% over the 2009-2013 PN. The funds will be used to ensure the discovery and appropriation of reserves to maximize the recovery of oil and gas concessions in production, and develop the production of pre-salt Santos Basin and intensify efforts in other areas of exploratory pre-salt and new frontiers in Brazil and abroad.

Besides the investments in infrastructure of US$ 12.3 billion needed for production growth, the company also is preparing to access the critical resources needed to implement this Plan. In this context, the company expects to have a greater availability of drilling rigs for deepwater in the international market, totaling 26 rigs by 2014 and 53 by 2020 and 504 support vessels by 2020 (254 in 2009).

The segment of Refining, Marketing and Transportation has planned investments of US$ 73.6 billion. The strategy to expand refining capacity was maintained, seeking a balance with the growth of oil production of Petrobras, adjusting the refining capacity to meet the quality levels of products required by the market.

Plan are provided in addition to the expansion of existing units, the entry into operation the Abreu e Lima Refinery in 2013, refineries Premium I, in 2014 and the first phase of the Petrochemical Complex of Rio de Janeiro - COMPERJ in 2013. With these investments, the total processed in Brazil in 2014 will be 2.3 million bpd.

Have investments in petrochemicals total US$ 5.1 billion, focusing on expanding the production of petrochemicals and polymers preferably through equity investments, mainly in Brazil, in an integrated manner with other segments of the Company.

The Distribution business will receive investments of US$ 2.5 billion, leaderships in order to guarantee national distribution, with a target of 40% stake in the domestic market in 2014, and performance in the distribution of oil products abroad.

After a phase of investment in infrastructure to transport natural gas for transport of produce and reach the consumer market, the segment Gas and Energy will receive $ 17.8 billion. These investments will be directed to consolidate the leadership of Petrobras in the Brazilian market for natural gas, rather than thermoelectric thermoelectric.

In addition, investment will be made for the chemical processing of natural gas, increasing the flexibility of the chain of Natural Gas and Electric Power Generation, and is planned (ammonia and urea) in synergy with other assets of Petrobras.

International - Although the most guidance on investments in the domestic market in the international arena will invest US$ 11.5 billion, with a focus on the development of exploration and production in the Gulf of Mexico (Cascade, Chinook, Saint Malo and Tiber), West Coast Africa (Nigeria) and Peru.

The segment of biofuels receive US$3.5 billion, operating in production, logistics and marketing of biofuels and participating in the value chain in Brazil and abroad, working in an integrated manner. The strategy in this segment of ethanol was redirected to the acquisition of shares in order to become a major player in the market, ensuring the field of technology for sustainable production of biofuels.

HSE, IT and R & D - The Company has earmarked investments to overcome technological challenges, operational safety and human resources. In the area of Safety and Environment (HSE) will invest US$ 3.3 billion, US$2.9 billion in the area of Information Technology and Telecommunications (ICT) and US$ 5.2 billion in research and development (R&D) with a total investment of US$11.4 billion.

The Challenge of Human Resources will ensure excellence in people management and talent identification, ensuring adequate training and education, with strengthening of culture and identity of the Company. The Business Plan 2010-2014 requires the acquisition and management of critical resources for their implementation. Skilled labor, supply chain and strengthened capacity of finance will be needed to achieve the large number of projects. The company is working to overcome these challenges.

The social and environmental responsibility is a cornerstone of corporate strategy of Petrobras, along with profitability and growth, and guiding the relationship with its stakeholders. The company operates based on the Global Compact's ten principles of the United Nations (UN), which is a signatory since 2003.

Our goal at HSE is to meet the significant growth and diversification of the company business in the coming years by continually improving the safety conditions of our operations, minimizing the impacts of operational activities and products on the environment and reduce resource consumption natural and pollutant effects.






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2010-06-04

Sugar and Ethanol industry in Brazil witnesses large acquisitions and investments with forecasts for exceptional growth

With the planned acquisition of the Mandu Mill in Sao Paolo state, Acucar Guarani SA will be Brazil’s third biggest sugar and ethanol group. The group’s CEO announced the plans today marking the continued acquisition of smaller companies by bigger ones, currently widespread in the Brazilian ethanol industry. According to industry analysts, almost half of the 400 mills in the country are ready for acquisition.



The company’s CEO further said that it was prospecting for other opportunities that may come up and the company would most likely take part stating that it was ready for any future acquisitions. Guarani, a French owned company controlled by Tereos Sugar group, is the country’s fourth largest sugar producer and the sixth biggest ethanol producer. According to the announcement, the acquisition investment for Mandu mill will cost it $188 million and would increase its processing capacity to about 20.6 million tonnes of cane per annum.



In the investment plan, Guarani will assume Mandu’s estimated $139 million debt and it comes one month after state owned giant oil company, Petrobas, purchased a 45.7% stake in Guarani for an estimated $872 million in a bid to expand its biofuels division. Petrobas is currently in a quest to become a global leader in the biofuels industry and is targeting a projected 3.9 billion litres by the year 2013 but with its relatively limited experience in the cane, sugar and ethanol industries, Petrobas has instead preferred buying minority stakes in other companies to meet its expected target.



The Mandu mill to be acquired by Guarani has a crashing capacity of 3.5 million tones of cane per annum and is expected to be increased with little investment to 4 million tonnes. The Mandu production output has tended to split between the two industries with 60% for ethanol and 40% for sugar. Guarani expects that Mandu’s sugar production this year will reach 200,000 tonnes with an ethanol output of 175 million litres, and about 12 MW of electricity will be generated from the burning of cane bagasse.



Guarani’s annual ethanol production stood at 490 million litres of ethanol per year before this acquisition of Mandu. Guarani group has five mills located in the North and Northeast of Sao Paolo state, one of the biggest states in the country in sugar production with about 60% of Brazil’s cane output. Subsequently, Brazil has emerged as the world’s largest exporter of ethanol from sugar cane farming, prevalent in the country.



June 3, 2010.

2010-06-02

FPSO lease for Tupi Nordeste Field

Source: Petrobras Agency

Date: 06/02/2010 14:02



Petrobras announces that, as operator of the consortium responsible for the development of block BM-S-11, has signed a Letter Of Intent (LOI) with SBM Offshore N.V. (SBM) and Queiroz Galvão Óleo e Gás S.A. (QGOG), for the construction of a FPSO that will operate the second pilot project in Tupi, in the pre-salt region of the Santos Basin.


The FPSO will be installed in Tupi Nordeste area, located at nearly 265 kilometers offshore in 2,130 meters of water and 18 kilometers from the original Tupi discovery. The FPSO will have production capacity of 120,000 bpd of light crude oil and up to 5,000,000 m3/d of natural gas, and will be operated by the companies responsible for its construction and chartered by the consortium for a 20-year period.


Block BM-S-11 is operated by Petrobras (65%), in partnership with BG E&P do Brasil Ltda. (25%), and Petrogal Brasil/Galp Energia (10%). The project schedule foresees delivery of the FPSO in 34 months from LOI execution date. The contracts will be signed in the next couple of days.

2010-06-01

Platform kicks-off production in the Cachalote field


Source: Petrobras Agency 
Date: 06/01/2010 17:00

Petrobras kicked-off production at the FPSO Capixaba, in the Cachalote field, Saturday (29/05). The FPSO (Floating Production, Storage, and Offloading unit) is also connected to the Baleia Franca field, both located in the "Parque das Baleias" region, off the southern coast of Espírito Santo, in the Campos Basin.

The FPSO Capixaba is chartered to Petrobras by SBM, and previously operated in the Golfinho Field. To seize the opportunity to anticipate production at the Cachalote and Baleia Franca fields, the platform's process plant was adapted, making it feasible to install the rig in the Parque das Baleias.

The first well to produce is the 7-CHT-5HA-ESS, with an initial flow rate estimated at 22,000 barrels per day. By the end of the year, the platform is expected to be interconnected to a total of nine wells in the Cachalote and Baleia Franca fields. There will be three production and two injection wells in Cachalote, and three production wells - two of which in the pre-salt layer - and one injection well in Baleia Franca. Production is scheduled to peak in December 2010, at an expected volume of 100,000 barrels of oil per day.

FPSO Capixaba

Oil processing capacity: 100,000 barrels of oil per day
Gas production capacity: 3.2 million cubic meters per day
Water depth: 1,480 meters
Length: 345 meters
Height: 127 meters
Lodging: 96 workers
Storage capacity: 1,600,000 barrel

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