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Petrobras hits new production record amid 'pre-salt' boom

February 13/2020

MOSCOW (MRC) -- Brazils Petrobras hit a new production record in the fourth quarter, of over 3 million barrels of oil equivalent per day (boepd), thanks largely to the ramp-up of platforms in the prolific pre-salt formation, said Reuters

In a securities filing, Petroleo Brasileiro SA, as the company is formally known, said it produced 3.025 million boepd, up 5.1% from the third quarter and 13.7% from the fourth quarter last year. In December, the company said, it hit 3.8 million boepd, an all-time monthly record for the firm.

In the filing, the company attributed the monthly records to the ramp-up of several platforms, including the P-67 and P-69 platforms in the Lula field. More generally, the company has benefited from a shift in focus to the offshore pre-salt formation, where billions of barrels of oil are located beneath a layer of salt under the ocean floor.

Oil and natural gas production in the pre-salt reached 1.533 million barrels per day (bpd) in the fourth quarter, the company said, up 12.1% from the third quarter and up some 46.4% from the year-ago period.

In the filing, Petrobras maintained its guidance for 2020 production at 2.7 million boepd. The firm has said that reflects expected maintenance stoppages and sagging production at some legacy fields, though the market widely viewed that production target as surprisingly low when it was divulged in November, given the companys current output.

Petrobras produced an average of 2.77 million boepd in 2019, up 5.4% from 2018.

As in previous quarters, production at onshore and shallow-water fields, as well as deepwater post-salt fields, fell sharply, thanks to divestments and a shift in investments to the pre-salt.

Post-salt oil production fell 14.2% in the fourth quarter from the year-ago period to 680 million bpd, while shallow-water production fell 29.8% to 59 million bpd.

As MRC wrote earlier, the chief executive of Brazilian state-run oil firm Petroleo Brasileiro said in December 2019 he wants to sell the company's stake in petrochemical company Braskem within 12 months.

We also remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, Petrobras.
Category:General News
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