Increased production will generate a positive trade balance for Petrobras

7/7/2008

During a press conference held after the launch of the Invitation to Tender for the construction of 23 vessels in the second phase of Transpetro’s Fleet Modernization & Expansion Program (Promef), Petrobras’ Downstream Director, Paulo Roberto Costa, announced Petrobras is expected to close the year positive by $500 million in its liquids trade balance (oil and derivatives).

The director said that in the first four months of the year, the balance was negative due to the heightened demand for diesel fuel caused both by the industrial expansion and by the increase in vehicle movements for grain harvest transportation. In the second half of the year, with domestic oil and diesel production rises, in addition to the 3% mix of biodiesel in diesel fuel, the trend is exports will grow and imports decrease. Petrobras’ trade balance in the first five months of the year is positive in volume (91,000 barrels/day), and negative in amount ($641 million).

With five platforms going online, and with new wells going into operation at the five platforms that started producing last year, there will be more domestic oil available for exports. Petrobras, however – added director Paulo Roberto –, will be a major derivatives exporter in the near future. By 2016, we will build five new refining units, two of which will be large and aimed mainly at exports.

The director mentioned Brazil is still self-sufficient in oil because current production (1,867,336 barrels/day) above demand (some 1,720,000 barrels/day).

Petrobras press release