Strong results for Petrobras

Brazilian state-owned oil giant Petrobras announced its results for the first half of 2011, showing net income of R$21.928 billion (about $13.595 billion), an increase of 37 percent over the same period last year.

Petrobras says first half results were boosted by a 12% increase in sales revenues, driven by a 2% growth in domestic oil and natural gas output and, mainly, a higher oil product and natural gas sales volume on the domestic market.

Surging commodity prices helped increase income from exports and international sales. For example, the average price of Brent crude oil rose from $77.27 per barrel in 2010 to $111.16 per barrel in 2011.

However, higher costs for imported crude and crude oil products, extraction, government share and refining increased the company’s expenses. Additionally, operating expenses rose 7 percent as compared with the first half of 2010, due to increased spending on prospecting and exploration, and administrative costs. Overall, Petrobras reported a 3 percent increase in operating profit and 4 percent increase in operating cash flow.In conjunction with the announcement of its first half results, Petrobras’ semi-submersible platform P-56 began production in Marlim Sul field in Campos Basin. The semi has a potential to produce up to 16,000 barrels per day.

Installed at a water depth of 1,670 meters, P-56 is designed to process up to 100,000 barrels of oil per day when it reaches maximum capacity in the first quarter of 2012. Besides heavy oil of 18º API, P-56 will have the capacity to process and treat up to 6 million m³ per day of natural gas.

P-56 will be interconnected to 21 wells, of which 10 will be producers and 11 water injectors. The produced oil will be sent through oil pipeline to platform P-38, which is a FSO (floating storage and offloading vessel) type, located 20 km from the Platform. Then, the oil will be transferred to shuttle tankers and the natural gas will be delivered through gas pipeline to the Cabiúnas terminal.

P-56 is 125m long, 110m wide, 137m tall and has a total weight of more than 54,000 tons. Construction of the integrated modules (topside) of P-56 reached a high rate of local content. The hull was entirely built in Brazil by the FSTP Consortium, which includes Keppel FELS and Technip.

Earlier in August in London, Petrobras discussed its 2011-2015 Business Plan which outlines investments of $224.7 billion. About 57% of the capital investment in the plan will focus on deepwater discoveries in Brazil.

August 17, 2011