PBR: New Giant Oil Field's Production to Rise to 100k bpd Next Week, To Invest $240B

José Sergio Gabrielli, the president of Petrobras (PBR on the NYSE) confirmed today that production of the Tupi field will increase from 14,000 barrels of oil per day to 100,000 barrels per day on October 28 .

He also confimed the company's investment plan of $ 224 billion company by 2014, adding that most of that will be covered by cash resources, capitalization already made, and revenue generation.


Gabrielli also said that the leverage ratio will rise to 30% in coming years. He said there was now a debt of $ 38 billion that can be rolled and there is need of getting about $38 billion more over the next five years. "It's not something that is considered impossible or very difficult," he said. "Our leverage is that the debt on equity is 16%, 18%, then the new (debt) goes to 30%," he said during a news conference at the end of their participation in the seminar "Pre-salt and Rio Grande do Sul - Opportunities for Industry, Workers and Society ", in Porto Alegre.

The president of Petrobras believes that the decline in the price of PBR in recent days is due to a general movement of global capital market, especially in the fields of energy companies and oil. "As Petrobras has a very high volume of transactions, it's a very liquid, it tends to have more intense movements that many other companies," he said.

In addition, he cited the change in the collection of IOF on fixed income and variable in early October as another factor for stabilizing actions, due to portfolio adjustments made by international investors.