Petrobras to invest in pipeline and terminal projects

Carlos Felipe Lodi, general manager for logistics of Brazil’s oil and gas giant Petrobras, said the company will invest BRL1.23 billion (US$610.2 million) in pipeline and terminal projects this year. Lodi explained that the investments are necessary because of the growth in oil production and demand in the country. According to a ten-year power sector plan prepared by EPE, a state-run energy research company, Brazil’s oil production is expected to reach 6.092 million barrels per day (bpd) in 2020. Local demand for oil derivatives is estimated to grow between 3.5% and 4.5% per year until 2020. A study conducted by the Brazilian Institute of Oil and Gas (IBP) estimates that a total of BRL52.6 billion (US$25.6 billion) in investments is needed through 2020 to make the country’s petroleum products and fuels distribution system more effective. (May 31, 2012)