Offshore Activity

Petrobras targets oil and gas extraction costs below US $ 10 / barrel

Petrobras plans to operate at production costs below 10 dollars per barrel of oil equivalent in the medium term, state oil and gas exploration and production director Solange Guedes said on a teleconference with analysts about the 2016 results.

 

In 2016, the company’s oil and gas production cost in Brazil and abroad fell 11 percent from 2015 to $ 10.3 / boe. In relation to 2014, the cost of extraction fell 27 percent. Only in the pre-salt, last year, the cost was below the 8 dollars / boe.

 

“We are acting very strongly in our offshore logistics costs, which is where we have the main space to operate better with even more competitive costs … I understand that we will have improvement in this area,” said the director.

 

The executive considered, however, that every time a platform comes into operation there is a “rush” of spending, since the unit arrives with its full costs and a relatively small production and this is diluted over time, with Increasing production.

 

“Because we have a large concentration of units, (cost overruns) can happen, but in the medium term we intend … to operate below $ 10 a barrel,” he explained.

 

By 2017, three new oil platforms are planned, two in the Lula field, in the Santos Basin pre-salt, and the other in the Tartaruga Verde field in the Campos Basin.

 

One of them, the P-66 platform, is already installed in the Lula Sul field, awaiting only the endorsement of the federal environmental agency Ibama to start operations later this month.

 

In addition, the company plans to conduct the long-term test (TLD) of the Libra area in the Santos Basin pre-salt, an area considered extremely promising in July.

 

Libra currently has four wells drilled and three completed. In February, the company started a new drilling in the region, in the southeast area.

 

According to Solange, the time for completing a well in Libra fell 28 percent between the first and third wells to 47 days.

 

REFINING

 

After squeezing billion dollar losses in the refining area, Petrobras has been seeking in recent years the attraction of refinery partners, but without success. This Wednesday, the director of Refining and Natural Gas, Jorge Celestino, said that the company is working on models.

 

According to him, the company wants to attract partners to this area “as soon as possible”.

 

 

 

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