Brazil's state-run oil company will double its spending on drilling equipment to US$7 billion (euro5.5 billion) this year, ahead of possible price hikes in an overheated international market, Petrobras chief executive Sergio Gabrielli said Monday.
Petroleo Brasileiro SA also said it would offer details Tuesday on its plans to invest US$22.1 billion (euro17.2 billion) from 2007 through 2011 to develop new sources of natural gas amid rising domestic demand and a move by its largest supplier to hike prices.
And Gabrielli confirmed reports from last week that will build a new refinery capable of processing 500,000 barrels of oil a day by 2014, the Agencia Estado news wire reported.
Construction will likely begin in 2010, but Gabrielli said the refinery's location has yet to be selected. Petrobras, which has 11 refineries in Brazil, invested earlier this year in a facility in the United States and is looking to purchase more abroad.
The company called a news conference for Tuesday to outline details of the its board's decision in late June to invest in developing natural gas exploration and production.
Latin America's largest economy was given incentive to boost its own production earlier this year when Bolivia, its largest supplier, nationalized its natural gas industry. The government of leftist President Evo Morales has demanded Brazil pay higher gas prices and hand over a controlling stake in Petrobras' extensive Bolivian operations.
Brazilian President Luiz Inacio Lula da Silva recently said it was a "mistake" for the country to turn to Bolivia for more than 50 percent of its natural gas, used for industrial power and as fuel for cooking and cars.
Petrobras on Monday also signed contracts with four Brazilian engineering companies that will build and operate six offshore oil-drilling platforms. The company plans to lease the platforms beginning in 2009 at a cost of US$4.8 billion (euro3.8 billion).
Petrobras currently leases 23 offshore platforms and operates four of its own. Brazil produces about 1.8 million barrels a day of crude oil, more than 80 percent of it from offshore fields.
The price of oil has hit new highs recently amid tensions and uncertainty in the Middle East, and was trading at US$74.30 (euro58.20) a barrel on the New York Mercantile Exchange Monday.
Petroleo Brasileiro SA also said it would offer details Tuesday on its plans to invest US$22.1 billion (euro17.2 billion) from 2007 through 2011 to develop new sources of natural gas amid rising domestic demand and a move by its largest supplier to hike prices.
And Gabrielli confirmed reports from last week that will build a new refinery capable of processing 500,000 barrels of oil a day by 2014, the Agencia Estado news wire reported.
Construction will likely begin in 2010, but Gabrielli said the refinery's location has yet to be selected. Petrobras, which has 11 refineries in Brazil, invested earlier this year in a facility in the United States and is looking to purchase more abroad.
The company called a news conference for Tuesday to outline details of the its board's decision in late June to invest in developing natural gas exploration and production.
Latin America's largest economy was given incentive to boost its own production earlier this year when Bolivia, its largest supplier, nationalized its natural gas industry. The government of leftist President Evo Morales has demanded Brazil pay higher gas prices and hand over a controlling stake in Petrobras' extensive Bolivian operations.
Brazilian President Luiz Inacio Lula da Silva recently said it was a "mistake" for the country to turn to Bolivia for more than 50 percent of its natural gas, used for industrial power and as fuel for cooking and cars.
Petrobras on Monday also signed contracts with four Brazilian engineering companies that will build and operate six offshore oil-drilling platforms. The company plans to lease the platforms beginning in 2009 at a cost of US$4.8 billion (euro3.8 billion).
Petrobras currently leases 23 offshore platforms and operates four of its own. Brazil produces about 1.8 million barrels a day of crude oil, more than 80 percent of it from offshore fields.
The price of oil has hit new highs recently amid tensions and uncertainty in the Middle East, and was trading at US$74.30 (euro58.20) a barrel on the New York Mercantile Exchange Monday.
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