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Update Petrobras hire 14K workers,Spend$112B -Overtake all but Saudi Producers

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This topic contains 1 reply, has 1 voice, and was last updated by  Charles Randall 14 years, 6 months ago.

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  • #3641

    Charles Randall

    Petrobras Hiring 14,000 Geologists, Oil Rig Workers (Update1)
    2008-05-07 04:10 (New York)
    By Joe Carroll
         May 7, 2007 (Bloomberg) — Petroleo Brasileiro SA, Brazil’s state-
    controlled oil company, plans to add 14,000 engineers, geologists
    and drillers within three years as it develops the biggest crude
    discovery in the Western Hemisphere since 1976.
         Petrobras, as the company is known, plans to expand its
    workforce 23 percent to about 74,000, surpassing Chevron Corp., the
    second-largest U.S. oil producer. The hiring binge is part of a
    $112.7 billion expansion that may allow Brazil to overtake the
    output of all OPEC members except Saudi Arabia.
         Petrobras lacks the roughnecks, or rig workers, and other
    staff needed to tap billions of barrels that lie in the offshore
    oil finds. The company is trying to hire more than a dozen people a
    day amid intensifying competition for skilled oil workers after
    crude prices surged to a record.
         “If some of the hypotheses are true and we have very, very,
    very large reserves, then probably we are going to face some
    constraints on personnel,” Chief Executive Officer Jose Sergio
    Gabrielli said in a May 5 interview in Houston.
         Petrobras said this week that it will begin pumping oil by
    April 2009 at its Tupi field 250 kilometers (155 miles) off the
    Atlantic coast, a year ahead of schedule. The field may hold 8
    billion barrels of recoverable oil, Rio de Janeiro-based Petrobras
    said in November, the hemisphere’s biggest petroleum find since
    Mexico’s Cantarell field was discovered.


         Production at the nearby Carioca deposit may begin in four to
    five years, Gabrielli said in the interview. A Brazilian regulator
    said last month that Carioca may hold 33 billion barrels of crude,
    which would make it the largest field outside the Middle East.
    Petrobras said it will take at least three months of drilling to
    evaluate Carioca.
         Tupi and seven other fields in the same region of the Atlantic
    are central to Gabrielli’s plan to boost production by 79 percent
    to the equivalent of 4.2 million barrels of crude a day by 2015.
    Output at that level would put Petrobras on par with Irving, Texas-
    based Exxon Mobil Corp., the world’s biggest energy company.
         Petrobras has risen 28 percent in Sao Paulo trading since
    announcing the Tupi discovery in November. Over the same period, a
    Standard & Poor’s index of major U.S. producers has climbed 7.6
    percent. Oil futures reached a record $122.73 a barrel yesterday in
    New York.
         Exxon Mobil, Royal Dutch Shell Plc and Saudi Arabia’s state
    oil company also are accelerating hiring as more oil production
    moves into deep oceans and harsh environments that require more
    advanced technology, said Dan McSpirit, an analyst who covers the
    oil industry for BMO Capital Markets in Denver.
         “There’s a shortage of good talent,” McSpirit said.

                              Chevron, Exxon

         San Ramon, California-based Chevron, one of 13 companies
    exploring the Atlantic seabed off Brazil’s coast, employed 65,000
    people at the end of 2007. Exxon Mobil had 80,800.
         Petrobras intends to recruit all of its new employees from
    Brazilian universities and technical schools, said Gabrielli, a 59-
    year-old, Boston University-trained economist.
         “They probably can,” said Christopher Ross, a vice president
    at CRA International Inc. who advised Venezuela in the 1990s on
    opening that country’s oil sector to foreign companies. “Brazil’s
    a large country with a very good educational system, and Petrobras
    has a very positive image at home which allows them to attract the
    best and the brightest.”
         Petrobras is the company of choice for Brazilian university
    graduates because it offers training and “lifetime careers,” said
    Guilherme Estrella, who heads the company’s exploration and
    production business. “That’s our tradition at Petrobras, so we
    have a very good image,” he told reporters yesterday at an
    industry conference in Houston.

                             Tarnished Image

         U.S. and European oil companies are having a tougher time
    recruiting graduates because the industry’s image has been
    tarnished in the past 20 years, said Ross, co-author of Terra
    Incognita: A Navigation Aid for Energy Leaders (PennWell Books,
         “There’s more work to do than people to do it right now,”
    Ross said. “All of the scientific disciplines are coveted and the
    companies are competing aggressively with each other to fill
         Petrobras isn’t recruiting any of the 18,000 employees
    fired by Venezuela’s state oil company during a 2002-2003 strike
    against the government, Estrella said. Petroleos de Venezuela SA,
    the biggest oil exporter in the Americas, dismissed more than half
    of its scientists, managers and laborers after a failed strike
    aimed at toppling President Hugo Chavez crippled output.
         “It’s not because we don’t want the foreigners,” CEO
    Gabrielli said yesterday at the conference. “It’s just that we
    have Brazilians ready and capable to do the work.”


    –With reporting by Steven Bodzin in Caracas. Editors: Tony Cox,
    Stephen Voss.

    To contact the reporters on this story:
    Joe Carroll in Houston at +1-713-353-4872 or

  • #6868

    Charles Randall

    Here is Update Petrobras Upstream expanding capabilities to match new fields. Might be work potential for Companies with Brazil presence – especially if  Brazilian workers to lead efforts?
    Also ties recent news (see Valero Krotz Refinery sale comments) that Petrobras will purchase Valero Aruba after May 9 board approval. And of Petrobras plans to “Sync” Pasadena with Aruba (aka lacks FCC) – which makes no sense to me since Pasadena only has complexity of 8.4 not much above Arubas 8.
    And if some Petrobras offshore heavy crude finally gets into Pasadena – both FCC & Coker are too small.  Pasadena has to get project on both units for purchase Pasadena make sense – especially with this crude news focus.  Also Aruba has put in at least FCC or sell gasoil to market (PDVSA sold several gasoil cargoes to US Gulf 2007 when PRC units were down so intermediate market would purchase it over crude since it is likely priced off products price instead of crude price delta).
    If Petrobras buys Aruba – I’d look for either Pemex to lose 100 MBD Maya sales & be replaced by Petrobras heavy crude finds or to replace Aruba’s other half crude supply (or both?) and that would definitely require more FCC capacity than Pasadena would have.
    Charlie Randall

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