Investment plan

Brazilian company Petrobras raises investment plan to $ 68 billion, lowers production forecast for 2022


The logo of Brazilian state oil company Petrobras is seen at its headquarters in Rio de Janeiro, Brazil, October 16, 2019. REUTERS / Sergio Moraes / File Photo

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SAO PAULO, Nov.24 (Reuters) – Brazilian company Petrobras (PETR4.SA) announced on Wednesday that it plans to invest $ 68 billion from 2022 to 2026, a sharp increase from its previous five-year plan, while the state-owned oil company seeks to increase oil production from the pre-salt submarine area.

Oil production forecast for next year has dipped slightly, however, with Petroleo Brasileiro SA, as the company officially calls it, saying it expects to produce an average of 2.1 million barrels of oil per day in 2022, plus or minus 4%.

This is down from the 2.3 million bpd the company previously said it expected to produce next year. The company blamed the COVID-19 pandemic for the reduction.

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By 2026, Petrobras has announced oil production of 2.6 million barrels per day.

The $ 68 billion Petrobras plans to invest over the next five years is a significant jump from the $ 55 billion the company announced last year for the period 2021 to 2025.

Of the new total, Petrobras said 84% will go to oil and gas exploration and production, with the lion’s share going to the highly lucrative submarine pre-salt area.

In terms of asset sales, the company said it plans to make divestments of between $ 15 billion and $ 25 billion over the next five years.

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Report by Roberto Samora; Written by Stephen Eisenhammer; Editing by Chris Reese and Peter Cooney

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