Petrobras keeps its options open

Brazil's state-controlled oil company is not cutting investment yet, but may have to if oil prices continue to fall or its financing options look too unappealing

PETROBRAS is determined to avoid scaling back its spending plans because of adverse market conditions. The company will accelerate investment in its highly prospective pre-salt areas chief executive José Gabrielli assured investors last month and – at present – intends to proceed with all the 500 or so projects in its rolling five-year business plan, at a total cost of $174.4bn. The firm will spend heavily in the downstream, particularly refining, which will absorb 73% of its $47.8bn downstream budget, boosting capacity from 1.791m b/d in 2009 to 2.270m b/d in 2013 in order to meet rapidly rising domestic products demand. Further expansions to 3.012m b/d are envisaged by 2020, through revamp