Brazil’s state oil company Petroleo Brasileiro S/A on Thursday said it aims to get exploration and production back on track, as output has lagged in the last couple of years.
Petrobras, as the company is also known, is increasing its investments over five years to $236.5 billion, a 5% increase from the previous investment plan–one of the largest corporate investment plans in the world. The company is developing reserves off the country’s southeast coast that are the largest discovered in the world in the last 20 years.
Of the total investments, $141.8 billion or 60% will be spent on exploration and production, as the company aims to get output back on track, the company said in a statement.
The company said it wants to “recover the production curve for oil and natural gas” and will prioritize its efforts in Brazil.
Petrobras said it aims to produce 3.3 million barrels a day of oil and natural gas in 2016, of which 3 million barrels a day would be produced in Brazil; it sees a step-up in Brazilian production from 2014. By 2020, the company aims to be producing 5.7 million barrels a day of oil and gas world-wide, of which 91% would be produced in Brazil.
However, analysts said that this represents a drop from previous forecasts. The company previously expected output of 6.4 million barrels a day in 2020.
The company said it has budgeted Brent crude oil prices at between $90 to $100 a barrel for the five years between 2012 and 2016 and aims to borrow $16 billion to $18 billion per year over those five years.
The company said it has increased its goal for raising revenues from asset sales to $14.8 billion, up from $13.6 billion previously, and reiterated that the sales will focus on overseas assets.
