Petrobras Hits Lower Production in the First Quarter

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Researched by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Brazilian energy company Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil) registered slightly lower year-on-year production in the first quarter, though refinery runs remain stable.

In the first quarter, Petrobras registered an oil and natural gas liquids output of 2.14 million barrels per day (BBL/d), about 1.4% higher than the previous quarter but 4% below the volumes reported a year ago. Natural gas output, meanwhile, averaged 499,000 barrels of oil equivalent per day (BOE/d), on par with fourth-quarter 2022, and 5.1% lower than during the first quarter of 2022.

The company's overseas hydrocarbon production stood at 36,000 BOE/d from its assets in Bolivia, Argentina, and the United States, which is on par with the previous quarter.

Some of the reasons behind the lower output were the shutdown of the P-18 and P20 post-salt platforms, the divestment of the Albacora Leste and Papa-Terra fields, and the natural decline of some fields. Yet, some of the losses were offset by the start-up of four new wells in the Campos Basin.

Pre-salt oil output, nevertheless, stood at 1.7 million BBL/d, 3.8% higher than in fourth-quarter 2022. The energy company has focused on pre-salt investments over the last years, leading to the expansion of offshore platforms and higher hydrocarbon output.

For the next quarter, the Brazilian company expects the start-up of the Almirante Barroso floating production storage and offloading (FPSO) platform, which is located in the Buzios field and is expected to bring in an extra capacity of 150,000 BBL/d. Subscribers to Industrial lnfo's Global Market Intelligence (GMI) Production Project Database can click here to see related project reports.

For this year, Petrobras has a projected goal to reach oil and gas production of between 2.6 million BOE/d and 2.7 million BOE/d, as shown in its 2023-2027 business plan. As part of that, the company plans to inaugurate four new offshore platforms. Two of them will be in pre-salt fields, while the remaining two will be in post-salt areas.

Meanwhile, Petrobras' refinery utilization rate stood at 85% of the 1.9 million-BBL/d total capacity during the first quarter, about 1% and 2% below the averages in fourth-quarter 2022 and first-quarter 2022, respectively. Total fuel production volumes stood at 1.65 million BBL/d, about 4.2% lower than in the previous quarter. The reason behind this drop was the scheduled stoppages across the company's assets and the sale of the 46,000-BBL/d Isaac Sabbá Refinery (REMAN). Subscribers to the GMI Petroleum Refining Plant Database can click here for more information on the refinery.

During the first quarter, Petrobras' net exports increased by 45.7% compared to the previous quarter, due to more robust oil exports that were ongoing from fourth-quarter 2022 and lower product imports as a result of changes in seasonal demand.

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