Petroleo Brasileiro SA (PETR4), the biggest oil producer in ultra-deep waters, estimates it will save $18 billion in discovery costs after buying rights to one of country’s top two finds, the company said today.
It would cost $26 billion to acquire, discover and quantify an equivalent amount of oil in other areas from 2015 through 2021, Petrobras estimated in a presentation filed with the market regulator.
The state-controlled company’s management met with sell-side analysts this afternoon to explain the $6.8 billion acquisition it signed with the government in exchange for rights to as much as 15 billion barrels of oil.
Oil reserves from the four fields in the so-called pre-salt region in deep waters of the South Atlantic included in the contract will reduce the need to participate in future bidding rounds, it said.
The company estimated annual spending will fall from an average of $45.6 billion between 2013 and 2020 to $26.6 billion from 2021 to 2030, mainly because of the construction of refinery and fertilizer plants.
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