Petrobras plans spending cuts for 2013-2016

Offshore staff

RIO DE JANEIRO – Petróleo Brasileiro SA (Petrobras) has released some details of its cost reduction plans for the 2013-2016 period. The Operating Costs Optimization Program (Procop) is one of the 2012-2016 Business and Management Plan (PNG 2012-2016). The plans will lower Petrobras’ operating costs over the period by R$32 billion ($15.5 billion).

The scope of the program encompasses activities in Brazil, in the Exploration and Production, Downstream, and Gas and Energy segments, including logistics operated by subsidiary Transpetro, and processes that support operations, such as materials supply, parts and fuels inventories and information technology.

Procop initiatives deal primarily with increasing productivity of the company’s operational processes. Below are some of the main ones involving exploration and production:

• Reduction in fuel consumption for offshore production equipment

• Reduction in the annual cost of onshore well intervention

• Increase in the utilization factor of Natural Gas Processing Units

• Reduction in the number of vessels per offshore unit served

• Increase in productive rig days for workover activities.

For more on Petrobras’ exploration, drilling, and production plans, click here.

12/20/2012

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