Petrobras Plans to Double Overseas Investment

Petrobras' International Area Director, Nestor Cerveró, presented the company's international performance business strategies, investment plans, and corporate goals as foreseen in the company's 2007-2011 Business Plan to the Brazilian and the foreign press on Tuesday.

According to Cerveró, between 2007 and 2011, Petrobras will invest $12.1 billion abroad, $5.4 billion more than the 2006-2010 plan had foreseen. The Exploration & Production activities abroad will get 70.2% of the investments.

"The International Area will focus on Western Africa (particularly Nigeria and Angola), and on the Gulf of Mexico, because of the deepwater exploration perspectives in those regions," highlighted the director.

The second-largest share of the total investment--24.8%--will be directed to the refining and marketing activities. Cerveró said the plan also foresees investments in the petrochemicals, distribution, and in the gas & energy segments.

Of the $12.1 billion, 28% ($3.3 billion) will be allocated in Latin America, 23% ($2.8 billion) in North America, 16% ($2 billion) in Africa, and 33% ($4 billion) in new projects.

Petrobras' corporate strategy in its 2007-2011 Business Plan is to achieve leadership in the oil, natural gas, byproduct, and biofuel market in Latin America, performing as an integrated energy company with selective expansion in petrochemicals, renewable energy, and in international activities.

So far as Bolivia is concerned, Cerveró said the company's plan determines continuing fulfilling the take-or-pay agreement for natural gas imports that expires in 2019. The plan foresees the purchase of a daily volume of 24 million cubic meters, which may even go as high as 30 million cubic meters a day.

The corporate goals for the International Area project producing 568,000 barrels of oil equivalent (BOE) a day by 2011, representing a nearly 119% growth rate compared to the 259,000 BOE produced in 2005 results.