Petrobras Oil, Gas Output Falls In November

By MarEx 2013-12-30 20:26:00

Production of oil and natural gas at Brazil's state-run oil company Petroleo Brasileiro SA fell 1.5 percent in November compared with a year earlier as platforms and production facilities were shut down for maintenance.

Petrobras, as the company is known, produced an average 2.536 million barrels of oil and natural gas equivalent a day (boepd) in Brazil and abroad during the month, compared with 2.575 million boepd in November of 2012, the Rio de Janeiro-based company said in a statement.

November output was 0.8 higher than October production, however.

Despite the discovery of giant new offshore oil reserves since 2007 and a $237 billion five-year investment plan - the world's largest corporate spending program - production at Petrobras has been stagnant or declining since January 2012, when output reached 2.73 million boepd.

Emergency and scheduled maintenance, combined with lower output from older fields have been the main reasons for falling output even as new areas start producing.

Petrobras produces about 90 percent of Brazil's oil and natural gas.

Copyright Reuters 2013.