Petrobras to invest $174.4bn with new plan

Petrobras plans to spend $174.4 billion in the 2009-2013 period, 56% more than the amount budgeted under its previous five-year estimate.

Petrobras will invest an average $35 billion a year to expand oil and gas output, refining and fuels distribution, chief executive Jose Sergio Gabrielli said. The budget was approved three months later than expected. The increase comes amid a 68% drop in the price of oil since the commodity reached a record $147.27 a barrel on 11 July on the New York Mercantile Exchange. Petrobras had originally planned to release its spending plans in October. Petrobras has used government-backed or subsidised loans to make up for a fall in cash holdings under its $112 billion 2008- 2012 plan, a programme that committed the company to spend more than $22 billion a year. The company sees its crude output in Brazil growing to 3.3 million barrels of oil equivalent per day by 2013, boosted by output from its massive, recently discovered subsalt reserves. Petrobras sees subsalt oil output at 219,000 bpd by 2013, 582,000 bpd by 2015 and 1.8 million bpd by 2020, said Gabrielli. Of the total investments, Petrobras will allocate $92 billion for exploration and production, including the subsalt reserves, compared with $65 billion that was directed to E&P during the previous 2008-12 plan. Gabrielli said that the plans were based on the presumption that world oil prices would average about $42 a barrel over the period but saw prices as low as $37 a barrel this year.

Read More

Keppel Offshore & Marine braces for tough market

Singapore: Despite ending 2008 on a strong note with an 18% increase in revenues to $8.5bn Keppel Offshore & Marine has stated that it expects to see fewer rig and ship repair contracts during the coming months.

The subsidiary of the Keppel Group, accounted for 72% of group revenue of $11.8bn, having completed and delivered three semisubmersibles and 13 jackups to its customers. ‘The global economic slowdown and financial crisis as well as the drop in oil prices have affected the oil and gas industry,’ the company said in its annual report. ‘This is expected to result in fewer rig contracts. Shiprepair is also expected to be affected by slumping freight rates and more vessels being laid up. ‘However, the demand for FPSO conversions remains strong. The outstanding order book of $10.8bn with deliveries into 2012 will keep Keppel Offshore & Marine’s yards busy. Offshore & Marine Division will continue to be the largest contributor to the profit of the Group. The Division will continue to focus on cutting edge technologies and long-term relationships with its customers,’ it concluded.

Read More

Marseilles expects 160,000 more passengers in 2009

Marseilles is expecting 160,000 more passengers to embark, disembark or transit at its port in 2009.

This year, the French port expects over 700,000 passengers, including 500,000 transit passengers. In 2008, Marseilles had 140,000 passengers embark and disembark, while there were 400,000 transit passengers. Marseilles has reported a steady increase in cruise traffic since 2000. Cruise liners frequently calling at the port include Costa and MSC.

Read More

Russian shipbuilding update

The Zvezdochka Shipyard may begin weaning itself from building defence ships for the Navy and focus instead on building ships for the civil industry.

At a recent conference titled “Economic activities of Russia in the Arctic direction: problems of developing marine activities,” Russia held assessments of the ability of the yard to take on such orders. There are no concrete plans as of yet for Zvezdochka to make a transition, however, Russian insiders believe it will be highly probable as the Moscow Forum of Oil and Gas Industrialists has given the idea very firm backing and support. Krasnye Barrikady Shipyard has been struggling to pay wages to its employees. The Astrkhan shipyard may be able to gain some assistance from a Turkish company so as to continue work on the Caspian shelf for another one year. Other existing contracts include four orders for oil equipment in Kazakhstan and a drilling platform for the UAE.

Read More