Petrobras announces a 55% increase in its 5 year investment plan

Brazilian government controlled oil and gas multinational Petrobras has announced a raise in its 5 year investment plan by 55%, not withstanding budget cuts by most key global players amid falling prices and deteriorating demand. Petrobras plans to invest US$174.4 bln from 2009 through 2013, as compared with US$112.4 bln planned for investment for 2008-12. US$28.6 bln will be invested by the company in 2009 alone. US$104.6 bln will be allocated for exploration and production, including the sub-salt reserves, investments in biofuels will be boosted to US$2.8 bln through 2013. Brazil's promising new sub-salt oil reserves that could hold well over 50 billion barrels of light oil and gas will receive US$28 bln of the budget over the next five years. The budget could, in fact, be expected to get down revised over time, as the cost of equipment and services in the energy sector are expected to fall with a slowing world economy.