MercoPress. South Atlantic News Agency

Petrobras below production target

Petrobras below production target

Petrobras the Brazilian state owned oil company plans to raise a billion US dollars in debentures to help finance a production increase in one of its main oil fields.

The new funds will be used to increase production in the Marlim oil field, belonging to the Campo offshore Rio do Janeiro field, and is part of Brazil's strategy to become oil self sufficient by 2005. Brazil imports approximately 25% of its oil consumption.

The Marlim field is expected to increase production 13%, from 517,000 to 584,000 barrels.

However Petrobras president Henri Phillippe Reichstul announced this week that Brazilian oil production this year will only increase 7%, reaching 1,36 million barrels per day, instead of the 11% originally estimated.

Brazil production suffered a setback last March when its main oil platform sank. The company has also has to pay significant fines for oil spills and environmental damage.