Coronavirus Outbreaks Hit Petrobras' Quarterly Output

By Gram Slattery and Sabrina Valle
Tuesday, July 21, 2020

Coronavirus outbreaks at a number of platforms operated by Brazil's Petrobras hit production in the second quarter, the company said on Tuesday, though the firm indicated output may improve in certain regions.

In a securities filing, Petroleo Brasileiro SA, as the state-controlled company is formally known, said it produced 2.802 million barrels of oil equivalent per day (boepd) in the second quarter. That was up 6.4% from the same period last year, but down 3.7% from the first quarter.

Petrobras produced 2.245 million barrels of crude per day, it said, up 9.4% in annual terms and down 3.2% on a quarterly basis.

Petrobras attributed the reduction to the idling of shallow-water platforms, coronavirus outbreaks on offshore facilities and reduced demand. The company had previously announced the plans to hibernate 62 shallow-water platforms, whose lifting costs tend to be relatively high.

Among the deepwater platforms that saw production stoppages, Petrobras said, were the Capixaba, the Cidade de Santos, the Cidade de Angra dos Reis and the Cidade de Mangaritiba, all of which experienced outbreaks among workers.

In July, Petrobras indicated that output has been strong at its Buzios oilfield, Brazil's second most productive. Four platforms operating there hit a monthly record of 844,000 boepd, Petrobras said.

It also said that demand for certain fuels, such as diesel and gasoline, increased significantly in the quarter as worldwide quarantining orders were loosened.

The company said it had resumed full capacity at its largest refinery, the 434,000-barrel-per-day Replan, after shutting down some operations due to the lack of demand for fuels during the pandemic.

Petrobras was able to partially offset lower internal consumption in Brazil with higher appetite for its fuels internationally. Petrobras fuel exports rose 22% in the quarter, compared to the first three months of the year.


(Reporting by Gram Slattery and Sabrina Valle; Editing by Leslie Adler and Grant McCool)


WEBINAR: Floating Production Systems
The forecasts and market intelligence for the global floating production industry webinar will bring you insider access to business and investment opportunities in the deepwater global floating production sector.

Time
July 29, 2020, 11 a.m. in Eastern Time (U.S. and Canada), 5 p.m. CET

REGISTER HERE.

Categories: Offshore Energy FPSO Production South America Floating Production Shallow Water

Related Stories

CalWave to Provide Wave Energy Tech for British Columbia Project

Exxon Mobil Continues to Ramp Up LNG Portfolio

Argeo Inks Pact with CSI for Second HUGIN Superior AUV

Current News

First Gas Export to Denmark from Tyra II Expected Today

Vattenfall to Take Part in IJmuiden Ver Offshore Wind Tender in Netherlands

Beach Energy to Let Go 30% of Workforce Amid Strategic Review

Ocean Infinity Inks Deal with Shell for Subsea Data Capture Services

Subscribe for OE Digital E‑News