Petrobras sales to begin in months

Petrobras expects its $13.6 billion in announced asset sales to begin hitting the market in the first half of 2012, an executive with the Brazilian state-owned firm said Tuesday.

Company executives have previously said stakes in offshore blocks may be sold, as well as downstream assets including refineries. The goal, the energy giant has said, is to help finance its announced $224.7 billion investment plan for 2011-2015.

"I believe a very considerable amount of what has already been announced will be in the market in the first half of the year," chief financial officer Almir Barbassa told investors on the company's quarterly conference call.

He said exploration and production assets, however, could take more time. But he also hinted, without giving specifics, that the sales could be more far-reaching than initially stated, saying that "we were conservative in expressing the numbers" and "found much more than were announced" that could be targeted.

In 2011, pre-salt production increased from 71,000 barrels of oil per day to 133,000 bpd, Barbassa said, a figure that rises to 200,000 bpd along with the company's partners.

The company expects to drill 66 wells in 2012, up from 47 wells in 2011, "a reflection of the availability of new rigs," Barbassa said.

But the company was expecting to bring online 16 wells by the end of 2011, but was only able to complete nine. The remainder will be finished by the first half of 2012, Barbassa said, four which have already been completed.

It did release ramp-up estimates from several top projects, which are expected to total of 336,000 bpd in 2012, less than originally anticipated because of the delays, Barbassa said.

Namely, its P-57 project production is projected to increase from 80,000 bpd to 151,000 bpd, its Lula pilot project from 28,000 bpd to 44,000 bpd and its P-56 project from 17,000 bpd to 105,000 bpd.

Two projects targeted to come online in the third quarter of 2012 are also expected to contribute to production.

Petrobras' Cid. Anchieta FPSO, after seven wells come online by this year's end, is expected to be producing 25,000 bpd.

Its Cid. Itajai FPSO, after three wells come on line, is projected to produce 11,000 bpd.

An additional five wells tied into the Varredura project are also expected to add an average of 31,000 of bpd.

One analyst pointed out that the company had not released an overall production estimate for 2012. Barbassa said would not "take too much more to release a new figure."

Upstream Online - 14 February 2012