Petrobras expects to maintain its production levels in Brazil

The Brazilian company decided to maintain its goal of producing an average of 2.7 million barrels of oil and natural gas by the end of 2020 .

Oil extraction machinery

The oil company plans to maintain its production goal of barrels of oil and natural gas. / Photo: Pixabay

LatinAmerican Post | Moises Campos

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Leer en español: Petrobras mantendría sus niveles de producción en Brasil

Petrobras' Director of Exploration and Production, Carlos Alberto Pereira de Oliveira explained that in the first quarter the oil company produced 2.9 million barrels per day and in April production began to decline to 2.8 million barrels per day, this decrease was not so significant, despite the reduction in demand and the stoppage of some of the platforms.

The measures that Petrobras took to face the fall in demand

The Brazilian oil company took measures to face the drop in demand worldwide, as well as the excess oil supply that was in the market, so Petrobras suspended operations in 62 of the maritime platforms, in order to stop producing 200,000 barrels per day in the month of April. It also decreased by 50% the personnel on the maritime platforms, as a way to prevent the spread of Covid-19. However, despite these measures, the production level is the same as at the beginning of the year, which indicates that the productive capacity remains in good condition, as stated by Pereira de Oliveira.

Recovery of the Brazilian market

The Director of Refining and Natural Gas at Petrobras , Anelise Lara, stated that the Brazilian domestic market is beginning to recover, despite the contraction in demand in April, in which the consumption of gasoline, diesel and kerosene decreased.  Demand began to increase in May, with the exception of kerosene, due to the fact that the airlines have not re-established operations. The increase in production will make it possible to cover the demand of the Brazilian market, which has already shown signs of recovery, after a sharp drop in demand, and thus increase oil exports to its clients.

Also read: Expert opinion: COVID-19 vaccine rollout unlikely before fall 2021

The production plans of the oil company remain as stipulated in its five-year plan, in the same way it decided to go ahead with its divestment plan, launched four years ago in order to sell assets that have no strategic value and clean up finances . According to what was announced by the president of Petrobras , Roberto Castello Branco, none of those interested in the company's assets has withdrawn from the purchase proposals made.

Petrobras increases exports

Although OPEC has recommended reducing extraction, Petrobras has increased the export of crude oil and gasoline, and their derivative products. During the first quarter of the year, exports increased considerably, with a marked tendency to continue growing, especially due to demand from China, which is the main customer, said Anelise Lara.

Petrobras Finance and Investor Relations Director , Andrea Almeida stated that despite the fact that the company suffered the largest losses in its history in the first quarter of the year, the financial health of the company is maintained and investors reacted favorably to the announcements of the oil company. In the words of the president of Petrobras, they remain optimistic about the results of the company, they hope to continue giving good news to their investors.