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Update Petrobras delay refinery investment to push E&P 2011-2015 plans

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This topic contains 2 replies, has 1 voice, and was last updated by  Charles Randall 9 years, 4 months ago.

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  • #2224

    basil parmesan
    Participant

    UPDATE 2-Petrobras to delay refineries in new plan-sources

    18:45, Wednesday 15 June 2011
    * Petrobras (Madrid) 2011-2015 plan to focus on E&P, sources say
    * Some refinery projects could be pushed back
    * May reduce concerns about about low-margin investments (Adds details of plan, quote from source)
    RIO DE JANEIRO, June 15, 2011 (Reuters)Brazilian state oil company Petrobras will boost exploration and production investments in its 2011-2015 business plan and delay some refining projects, company sources said on Wednesday.
    The total outlays in the new plan will be close to the $224 billion in its 2010-2014 plan, said the sources, who asked not to be identified. They added the plan is scheduled to be presented to the board of directors on Friday.
    The shift appeases investors who have fretted that the company is putting too much money into downstream projects that offer lower returns than producing oil, concerns that have pushed down Petrobras’ share price in recent months.

     

  • #5028

    Charles Randall
    Participant

    Here is update on Petrobras new Plan 2011-15, it will be a big hit to calciners green anodes “lone hope” for more tonnes.
     
    The first road to ruin is for an oil company to start paying too much attention to what stockmarket analysts (idiots implied/given) say about its share price.  They never understand fundamentals of the oil industry let alone smart strategic decisions that go against the economics of the day/short term, and even when everything is channeled into dividends & stock price….they are never satisfied and punish oil companies for not meeting “expected higher returns”.
     
    These analysts are responsible for the death of innovation – they harped on Oil industry R&D expenditures that they wanted channeled into dividends until “R&D” became simply “D” and then only a token D.
     
    The chant for pushing everything into E&P and withdrawing funds/investments from Downstream is short road to hell that Petrobras will have lot good company with other majors that have sold out to Wallstreet a long time ago. The only reason E&P always looks good is that all profits are forced there because the company can take tax write-offs.
    Wallstreet loves E&P because of volatility – look at pure upstream producers (like Anadarko) sure they have runs at higher stock prices but they also have lower lows when market is down.  If speculators weren’t pushing prices instead of fundamentals – oil & their stock price would be half what stock market is showing now.
     
    Let’s hope the details of actual plan are more hyperbole than fact, and PB is speculating the speculators on this.
    Regards

  • #4988

    Charles Randall
    Participant

    Petrobras postpones Premium 1 refinery Update
     
    Santiago, 26 July (Argus) Brazil’s state-controlled Petrobras has postponed its 600,000 b/d Premium 1 oil refinery as part of the companys new $224.7bn business plan for 2011-2015, which places more focus on upstream activity.
    The project in Maranhao state is one of four major refineries Petrobras plans to build to absorb part of its growing crude production.
    The first 300,000 b/d phase of Premium 1 is now set to come on stream in 2016, two years later than originally planned. The second 300,000 b/d phase will go on line in 2019.
    We are not reducing the idea that integration is good for the company, Petrobras chief executive Jose Sergio Gabrielli said in a conference call today.
    New refineries, modernization of existing refineries and fuel quality measures such as desulfurization account for $70.6bn of the companys investments over the five-year period, according to the most recent plan.
    The first of the four new refineries scheduled to come on line is the 230,000 b/d Northeast refinery, also known as Abreu e Lima, in 2012. Venezuela’s state-run oil company PdV could participate with a 40pc stake, but it recently announced an audit to investigate cost overruns before it commits.
    The 330,000 b/d Comperj refinery will come on line in stages in 2013 and 2018, Petrobras said. The 300,000 b/d Premium 2 refinery is slated for start-up in 2017.
    To meet rising domestic demand for refined products, Petrobras has re-oriented its main new refineries to the domestic market.
    “At the beginning, the two Premium refineries were designed to reach the international market, but now, given the size of the growth of the Brazilian market, we are delegating those refineries to supply products to the Brazilian market,” Gabrielli said.
    Petrobras plans to process 2.205mn b/d of crude in Brazil in 2015, up from 1.811mn b/d in 2011. The level would increase to 3.217mn b/d in 2020 under current plans.
    At the same time, domestic crude and NGL production will climb from 2.1mn b/d in 2011 to 3.07mn b/d in 2015 and 4.91mn b/d in 2020.
    Of the total yield at the new refineries, 65pc will be middle distillates in 2020 compared with 43pc at the existing refineries in the same year. At the same time, the average sulfur level in the diesel produced in Brazil will shrink from 1,000-1,500ppm currently to 231ppm in 2020 under Petrobras’ plans.

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