Saturday, January 24, 2009

Petrobras Thumbs Nose at Global Economic Crisis With $174.4 Billion Investment Over 5 years

Petrobras, Brazil's state-run oil company, displayed barrel chested courage recently with its announcement that it will invest $174.4 Billion over five years - an increase of 50% (link). At a time when multi-nationals are gutting investments - Conoco Phillips will slash investments to $12.5 Billion vs. last year, where as Chevron is expected to cut its investments by 10% - Petrobras is displaying courageous bravado in the face of cheap oil with strident determination to take advantage of Brazil's vaunted offshore oil fields.

Some excerpts from the article:

Petrobras said late Friday that it will invest $174.4 billion in 2009-2013, including a whopping $28.6 billion in 2009. Chief Executive Jose Sergio Gabrielli called the company's investment plans "robust and important." Petrobras' previous strategic plan called for $112 billion in investments from 2008 to 2012. Petrobras invested about $23 billion in 2008.

Petrobras joined Mexico's Petroleos Mexicanos, or Pemex, as one of the few oil majors willing to up the ante on investments as a slowdown in global economic growth has sapped demand for crude. Pemex said that it will boost investments in 2009 to $19.4 billion, up from $18 billion in 2008.

- Brewskie

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