Brazil's Petrobras said on Wednesday it expects to invest $68 billion from 2022 to 2026, a sharp increase from its previous five-year plan, as the state-run oil company seeks to grow oil production from the subsea pre-salt area.
The oil production forecast for next year fell slightly, however, with Petroleo Brasileiro SA, as the company is formally known, saying it expects to produce an average of 2.1 million barrels of oil a day in 2022, plus or minus 4%.
That 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.
By 2026, Petrobras said it sees oil production of 2.6 million barrels per day.
The $68 billion that Petrobras plans to invest over the next five years is a significant jump from the $55 billion the company had announced last year for the period 2021 to 2025.
Of the new total, Petrobras said 84% would go to oil and gas exploration and production, with the lion's share destined for the highly lucrative subsea pre-salt area.
In terms of asset sales, the company said it expects to make divestments of between $15 billion and $25 billion over the next five years.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.