Petrobras predicts output growth in 2H 2013; asset sales continue

Joe Formigli, Petrobras’ Director of Exploration & Production (E&P) has announced that he expects the company’s oil output to rise in the second half of the year as a series of new platforms and wells come online and begin production.

Formigli confirmed that four new platforms would begin production, and a further four, already-producing platforms would have their production levels ramped-up. The company is also due to connect 36 wells up to production platforms later this year (a significant rise on H1 2013’s figure of 13 new wells); these are predicted to raise production capacity by 440 000 bpd.

The new platforms and wells are coming online at a time when 85% of Petrobras’ production output comes from more mature fields, which are declining at a rate of approximately 10% per year.

Asset sales

Petrobras’ US$ 9 billion asset sale programme is expected to largely conclude later this year. According to Reuters, half of the company’s assets in Africa have already been sold, making US$ 1.8 billion at the end of Q2. The total value of the asset sale had originally be forecast as US$ 14.8 billion, but earlier this year the figure was cut to US$ 9 billion.

The asset sale is one method by which the company plans to fund its mammoth US$ 237 billion 5 year Capex plan. Included in the assets to be sold off are oilfields, exploration rights and refineries.

Q2 Profits

Petrobras posted an estimate-beating Q2 profit of 6.2 billion reais (US$ 2.71 billion). In Q2 last year, the company made a loss of 1.35 billion reais. Although a profit was expected, analysts had estimated that it would be closer to 5.08 billion reais.

Edited from various sources by David Bizley

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