Brazil Petrobras trims 2005 oil output goal

Reuters, 04.25.03, 5:58 PM ET  

RIO DE JANEIRO, Brazil, April 25 (Reuters) - Brazilian state oil company Petroleo Brasileiro (Petrobras) <PETR4.SA>(nyse: PBR - news - people) said on Friday it lowered its 2005 production target due to delays in the construction of exploration platforms.

Production in 2005 should reach 1.82 million barrels of oil a day, not the previously targeted 1.9 million bpd, said Petrobras Finance Director Luis Sergio Gabrielli. He added that output should reach 2.22 million bpd in 2007.

"The events of the last years have caused us to draw a more conservative scenario," said Gabrielli, who explained that some oil exploration platforms would not be ready as soon as previously expected.

The firm's projections were based on forecasts for 3.1 percent annual economic growth and 2.8 percent yearly growth in consumption until 2007. Petrobras plans to invest $34.3 billion from 2003 to 2007, slightly higher than the $32 billion previously forecast.

Gabrielli also said Petrobras decided to construct a heavy crude refinery in northeast Brazil with a capacity of 150,000 bpd in partnership with Venezuela's PDVSA state oil company, which would supply some of the refinery's crude oil.

Rogerio Manso, director of supply for Petrobras, said the new refinery would help meet increased demand for diesel oil in the country.