Nielmar de Oliveira
Reporter - Agência Brasil

Rio - Petrobras' (Brazilian Petroleum S.A.) investments should attain US$ 17.9 billion this year, nearly 50% more than what was invested last year. This information was disclosed by the company's president, José Sérgio Gabrielli, during an interview in which the company's directors discussed details of the 2005 balance sheet. Last year Petrobras earned net profits of US$ 11.1 billion, an all-time record and 40.5% more than in the previous record year of 2004.

According to Gabrielli, by doubling its 2005 investments, which were already the highest in the company's history, Petrobras will guarantee self-sufficiency in petroleum production, which it expects to achieve in April of this year.

Gabrielli said that this means adhering to the company's decision to adopt policies of long-term growth, through the expansion of reserves and exploration areas. "We will also intensify our investments in refining capacity, in order to process more heavy oil."

He underlined Petrobras' policy of consolidating its position in new markets, mainly in South America.

"2005 was a good year not only in terms of the fantastic profit we obtained, but also because we took an important step to assure self-sufficiency in oil production, which will be achieved in the very near future. Moreover, we succeeded in enlarging and expanding our international activities, consoldiating our position in South America, the Gulf of Mexico, and the United States," he declared.

Of the US$ 17.9 billion it plans to invest this year, Petrobras will concentrate 60% on exploration and production activities and 15-17% on reform projects that are already underway to enable its refineries to process more and more heavy oil, thus increasing the volume of Brazilian petroleum in the crude oil load refined by the company.

Translation: David Silberstein