Petrobras CEO Sees 'Bigger' Capex for 2010-2014

Petrobras CEO Jose Sergio Gabrielli said Monday that the Brazilian oil giant's pending capital spending plan will likely trump the allocated amounts for 2009-2013, according to a report by Dow Jones Newswires.

Speaking at an executive luncheon in Houston, Gabrielli said the 2010-2014 capital spending plan, currently under review by Brazil's government, is "probably going to be bigger" than the current budget set at $31.6 billion annually.

However, Gabrielli underscored the company's biggest challenge to grow its offshore reserves base in the near term -- managing the logistics of the expansion, including developing a reliable chain of service suppliers ready to serve Brazil, Dow Jones noted.

"The most important constraint we may have is in the development of the supply chain," Gabrielli said, adding that presntly there "is not enough capacity worldwide" in rigs and other offshore services to serve the oil giant's ambitious plans.