Reuters
Brazil's state-run oil company Petrobras's (PBR.N) proven oil reserves could rise 35 percent as a result of access to new fields through an oil-for-shares swap, the company chief executive said on Thursday.
"We are going to have a 35 percent increase in proven reserves, strengthening production growth in a sustainable pace," Chief Executive Jose Sergio Gabrielli said during a conference call.
He said the company by 2014 or 2015 could incorporate those reserves, which are distributed in at least six fields. He added that the company's reserves are currently 14 billion barrels.
Gabrielli added that oil production would also increase as a result of the new fields, but declined to provide a time frame or changes to existing output forecasts.
"The strategic view of the transaction is that we will have a possible increase in the production growth rate of Petrobras as a whole," he said.
Petrobras will trade $43 billion worth of shares for access to 5 billion barrels held in the offshore areas, a transaction linked to a stock offering for minority shareholders that could raise as much as $25 billion.
"We are going to have a 35 percent increase in proven reserves, strengthening production growth in a sustainable pace," Chief Executive Jose Sergio Gabrielli said during a conference call.
He said the company by 2014 or 2015 could incorporate those reserves, which are distributed in at least six fields. He added that the company's reserves are currently 14 billion barrels.
Gabrielli added that oil production would also increase as a result of the new fields, but declined to provide a time frame or changes to existing output forecasts.
"The strategic view of the transaction is that we will have a possible increase in the production growth rate of Petrobras as a whole," he said.
Petrobras will trade $43 billion worth of shares for access to 5 billion barrels held in the offshore areas, a transaction linked to a stock offering for minority shareholders that could raise as much as $25 billion.
