Petrobras Q4 total production down 10.5%; sales and exports are also down

Petrobras, the state-owned oil company in Brazil, reported a 10.5% drop in its fourth-quarter total oil and gas production compared to a year ago. Sales and exports were also down.

Petrobras, Latin America’s largest oil company, reported a total oil and natural gas production of 2,63 million barrels equivalents per day (boed), for the three months ending in December.

Total sales of oil and gas, as well as derivatives, were down around 8% compared to a year ago, with 2.83 million barrels a day (bpd).

In the same time period, oil production by the firm in Brazil dropped 11.5% to 2,09 bpd.

Petrobras announced last month that production in 2024 would be around 2,7 million boed. This is 3% less than 2023 but still within the strategic goals of the company.

The company stated that last year's production had been affected by maintenance and unplanned stops at offshore production platforms. It also cited the natural decline of matured fields, and a strike in Brazil's environment agency Ibama.

Petrobras stated that the start-up of two new platforms has partially offset this loss.

Brazil's total oil and gas output will decline by 0.5% between 2024 and 2025, according to the oil regulator ANP.

Petrobras said that its exports for the fourth quarter of 2018 were nearly 22% less than the same period in 2023.

Petrobras said that Europe has become a more lucrative market for its exports. The company received 38% of its total oil exports during the fourth quarter compared to 28% one year ago.

Petrobras exported about 30% of its oil to China during the same period. This is down from 44% between 2023 and now.

Petrobras will present its financial results for the fourth quarter on February 26. Reporting by Fabio Téixeira, Rio de Janeiro; editing by Kyrry Madry and Nia William.

(source: Reuters)