Petrobras eyes output rise in 2H13 amid reduced shutdowns

Brazil's state-run energy major Petrobras (NYSE: PBR) expects oil and gas production to rise during the second half of 2013 as maintenance work ends at several offshore wells. Speaking during an investor conference call on Monday, Petrobras' exploration and production director José Formigli said the number of shutdowns would be reduced in the third and fourth quarters. "These stoppages are the only way to improve operational efficiency in the Campos basin," Formigli said. His comments came after the company blamed the shutdowns for a 5% year-on-year drop in Q1 production to 2.55Mboe/d. Maintenance work on the P-9, PCE-1 and Espírito Santo floating production, storage and offloading (FPSO) units contributed to the decline while output has also been halted on the P-54 vessel. Petrobras expects crude output over the course of 2013 to remain stable at about 2Mb/d. Formigli added production would rise considerably in 2014 as the company begins operating seven new platforms to be introduced by the end of this year. The Rio de Janeiro-based firm reported a Q1 profit of 7.69bn reais (US$3.85bn), down 17% from the same period last year. Analysts cited falling production and rising oil derivative imports as key factors in the decline.