Brazil to Invest $150B over the Next 4 Years on E&P Activities
Brazil expects to continue its offshore success and became one of the major oil producer in the world, as it plan its national oil company Petrobras plans to invest $150 billion on domestic exploration and production activities between 2013 and 2017.
Deepwater offshore production will represent nearly twice as large a part of the world’s oil supply by 2035, and Brazil is expected to represent nearly half of that again.
Jose Formigli, chief exploration and production officer for Brazilian state operator, Petrobras, said that between now and 2035, global deepwater production is expected to rise from 7% of world oil supplies to 13%, based on a projection from the International Energy Agency (IEA).
The surge in production from offshore Brazil, driven largely by huge fields discovered in its subsalt, is expected to push its share of the output added to 43% of oil needed to meet future demand and make up for declines from current fields.
While the world attention has been on oil found below the thick salt layer, a significant part of its exploration budget is targeting those in the pre-salt.
Petrobras will continue expanding significant amounts outside of the pre-salt “because we think it is important to diversify our reserves,” Formigl said.
By 2025, Brazil’s oil production expected to more than double.
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