Petrobras’s Top Oil Field to Start Next Platform in December

(Bloomberg) — Petrobras will continue to increase production at the world’s largest oil field this year while avoiding cost inflation as it advances deepwater projects.

The floating production and storage vessel, known as P-78, will reach first oil in the Buzios field in December, head of engineering and technology Renata Baruzzi said in a call with analysts. The ship arrived in Brazil in late September and has a production capacity of 180,000 barrels per day.

Sylvia Anjos, head of exploration and production, said the increase at Buzios and other fields increased Petrobras’ total oil production from an average of 5.2 million barrels per day in the third quarter to 2.6 million barrels per day in October. Petrobras also increased the capacity of its existing production vessels by 115,000 barrels per day, helping the company achieve higher-than-expected profits in the third quarter.

“Buzios is an amazing reservoir,” Anjos said during the conference call. Its “rock and cavity structures” allow the site to “produce more than we expected.”

Buzios is part of the pre-salt basin that turned Brazil into one of the world’s hottest oil regions 18 years ago and is now Petrobras’ last major growth engine. Its rapid development has allowed the country to increase production by more than any other non-OPEC country except the United States in the past year, providing a crucial source of revenue for Petrobras as it pursues the next big discovery.

During the meeting, Chief Financial Officer Fernando Melagrejo said that Petroleo Brasileiro SA, formally known as Petroleo Brasileiro SA, is delivering projects ahead of schedule and within budget. He added that individual projects were often completed faster than expected but within budget, helping to avoid cost overruns.

Melagrejo said the company allocated 85% of its capital expenditures to exploration and production in the third quarter. Still, he said the company is adjusting to lower oil prices and may postpone some investments.

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