Petrobras' 2011-2015 business plan released

Petrobras approved its 2011-2015 Business Plan on 22 July 2011.

Under the new plan, the Brazilian energy company's total energy investments during this period will reach $224.7 billion (€155 billion). This is the largest business plan in the oil and gas industry, in addition to the largest investment made by a single company.

The company's share in the exploration and production (E&P) segment will increase from 53% to 57%. New projects included in the portfolio are also concentrated in the E&P segment (87%), with the main projects related to the development of the pre-salt area and transfer of rights.

For the first time, the plan includes a disposal programme, amounting to $13.6 billion, in order to increase the return on assets.

The plan also includes a positive scenario for the Brazilian economy, with a significant increase in demand for oil products, as well as maintenance of rising production curve, due to start-up of larger and more productive fields.

The company expects to double its proved reserves until 2020.

Capex financed mainly by operating cash flow, with part resources provided by taking on new debt rather than new equity issuance. The need for net funding, excluding amortization, ranged from between $7.2 billion and $12 billion per year, in accordance with different scenarios used for the calculation; maintenance of investment grade rating.