Petrobras to Invest $132B on E&P through 2016

RIO DE JANEIRO - Brazilian state-run energy company Petroleo Brasileiro, or Petrobras, will invest $132 billion on exploration and domestic crude oil production through 2016 as the company ramps up development of recently discovered offshore fields.

Speaking during a presentation for reporters Wednesday, Petrobras Exploration and Production Director Jose Formigli said the company is targeting domestic crude oil output of 2.46 million barrels per day by 2016.

Petrobras expects oil production to grow between 5% and 6% per year over the 2014-to-2016 period, Mr. Formigli said.

Two new production systems also will start up in 2012, although crude oil output this year is expected to remain at slightly more than 2 million barrels a day.

First oil from the Baleia Azul field should be pumped later in August, Mr. Formigli said. The Bauna and Piracaba fields will also come onstream by the end of October, the executive added.

Copyright (c) 2013 Dow Jones & Company, Inc.

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