Rio de Janeiro, January 23
2009 - PETR�LEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE:
PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international
energy company, announces that its Board of Directors has approved today the
Business Plan for 2009-2013 period.
This Business Plan is based
on the fundamental strategies of the Strategic Plan 2020. The Plan has
been revised and up-dated to take into account the changes in the international
macroeconomic scenario and its impacts on oil and oil products market.
The Plan did not
incorporate potential cost reductions as a consequence of the d rop in the
international oil price although the Company recognizes that the decline in oil
should create the opportunity for cost reductions and will make its best
efforts to lower the cost of its investments.
Maintaining its commitment
to sustainable development, the Company intends to continue expanding its
activities in target markets for oil, oil products, petrochemicals, gas and
energy, biofuels and distribution, being a benchmark to the integrated oil
industry.
The Company's Vision to
become one of the five largest integrated energy companies in the world has
been maintained, based on the pillars of profitability , social and
environmental responsibility, and integrated growth.
The Business Plan 2009-2013
retains the aggressive growth targets for Petrobras and incorporates the
investment required for the exploration and development of the oil discoveries
in the pre-salt area.
The Business Plan 2009-2013
has established the following oil production targets in Brazil: 2,680 thousand
barrels of oil per day (bpd) in 2013, 3,340 thousand bpd in 2015 and 3,920
thousand bpd in 2020.
In addition to the Tupi
Pilot System, to begin production in 2010, three systems are scheduled to go
into production in the pre-salt layer of the Santos Basin during the period
2009-2013: Tupi 1 and Guar� 1 in 2012 and Iara 1 in 2013. The 2015 target in
the 2008-12 Business Plan of 2,812 thousand bpd has been increased by 528
thousand bpd as a result of these additional production projects.
Including natural gas
production, domestic output will reach 3,310 thousand barrels of oil equivalent
per day (boed) in 2013, 4,140 thousand boed in 2015 (685 thousand boed more
than for the 2008-12 Business Plan) and 5,100 thousand boed in 2020.
In refining, the target for
domestically feedstock in 2013 is forecast to reach 2,270 thousand bpd,. We
reiterate our strategy of increasing refining capacity both in Brazil and
overseas to follow Petrobras' production growth and to meet the
levels of product quality demanded by the market. In this context,
Refinaria Abreu Lima (Pernambuco) is expected to start up in 2011, the COMPERJ
in 2012 and the Refinaries Premium I and 2 in 2013 and 2014, respectively.
Targets for the
international business also reflect the Company's integrated growth and the
production of oil and gas is projected to reach 341 thousand boed in 2013.
The projected combined
output of oil and gas in Brazil and overseas for 2013 is 3,651 thousand boed.
Corporate Targets
|
Indicators
|
Realized
2008
|
Targets
2013
|
Prevision
2015
|
Prevision
�2020
|
Produ��o de �leo e G�s Natural - Brasil
(Mil boed)
|
2,176
|
3,310
|
4,140
|
5,100
|
Produ��o de �leo e G�s Natural - Total
(Mil boed)
|
2,400
|
3,651
|
4,626
|
5,732
|
Carga Fresca Processada - Brasil (Mil
bpd)
|
-
|
1,859
|
2,053
|
3,012
|
The plan, which for the
first time includes investments in the pre-salt area in Santos Basin, envisages
total investments of US$ 174.4 billion in 2013, . This represents an annual
average of US$ 34.9 billion, 90% of which (US$ 157.3 billion) in Brazil and 10%
(US$ 16.8 billion) abroad and 55% more than the previous Plan.
In comparison with the
Business Plan 2008-12, the most significant increase was in Exploration and
Production, with a growth of 71% in investments equivalent to US$ 92 billion,
or 53% of the US$ 174.4 billion for the 2009-13 period. The Downstream segment,
with a 27% share of the investment planned, has also seen investments increased
to US$ 46.9 billion, or a 46% rise in relation to the preceding plan. It also
should be highlighted the 139% increase of investments in Gas and Energy,
albeit representing only 6% of the total. In the International segment,
investments are to continue to be concentrated in Exploration and Production
with a focus on Latin America, West Africa and the Gulf of Mexico. A total of
US$ 2.4 billion will be invested in the biofuels segment through the new
Petrobras Biocombust�vel subsidiary.
The addition to total
projected capital costs is composed of: US$ 47.9 billion for new projects, US$
17 billion due to increase in costs and US$ 2.9 billion due to changes in
foreign exchange rate assumptions. The remaining amount is due to other
factors such as changes in projects scope, engineering design, etc.
Exploration and Production
accounts for 76.4% of the total US$ 47.9 billion allocated to new projects or
equivalent to US$ 36.6 billion. For the first time, the Company is dedicating
significant efforts in evaluating, developing and production of discoveries in
the so-called pre-salt layer of the Santos and Esp�rito Santos basins. Of the
new projects in the E&P segment, about US$ 28 billion relate to pre-salt
development.
Investiments (US$
billion)
|
Indicators
|
BP
2008-2012
|
BP
2009-2013
|
Changes
(%)
|
E&P
|
65.1
|
104.6
|
61%
|
Downstream (R T C)
|
29.6
|
43.4
|
47%
|
Gas & Energy
|
6.7
|
11.8
|
76%
|
Petrochemical
|
4.3
|
5.6
|
30%
|
Distribution
|
2.6
|
3.0
|
15%
|
Biocombustible
|
1.5
|
2.8
|
87%
|
Corporate
|
2.5
|
3.2
|
28%
|
Total
|
112.4
|
174.4
|
55%
|
The plan's revision has
incorporated the new world economic and financial scenario including its
effects on oil prices, among other variables. Price fluctuations of the
commodity impact short-term revenue and increase funding needs for 2009 and 2010.
With the market consensus expecting significantly higher oil prices for
2009-2013 period is significantly than the current oil price, the plan is
expected over time to be largely self funding.
Despite the current
financial crises potential impacts in the short term oil demand, in the long
term, the supply of oil is still expected to be lower than the demand due to
depletion in the existing production fields. Petrobras uses the average Brent
price assumption of US$ 42 per barrel for its analysis of financiability,
leverage targets and rates of return. The Plan also contemplates the analysis
of the world production growth, exchange rate and oil and oil products price
assumptions.
The target for average financial leverage of 25-35% is maintained and Petrobras
will continue to seek financing from various sources in Brazil and overseas, be
it in the capital and banking markets, or through securitization, development
agencies, etc.
The 2009 estimated
investments of US$ 28.6 billion and the average Brent price assumption of US$
37 for the cash flow generation, results in a funding needs of US$ 18.1
billion, which US$ 11.9 billion is already committed with BNDES and US$ 5.0
billion with other sources.
Sincerely,
Investor
Relations Department