Petroleo Brasileiro Petrobras : Petrobras achieves record production in Brazil for the fourth consecutive year

Rio de Janeiro, January 16, 2018 - Petróleo Brasileiro S.A. - Petrobras reports that the company's average oil production in Brazil achieved a historical record for the fourth consecutive year: It reached, in 2017, the mark of 2.15 million barrels per day (bpd), 0.4% above the previous year's result. For the third year in a row, the company meets its production target, confirming the predictability of its projections.

Petrobras' own natural gas production has reached in 2017 an unprecedented volume of 79.6 million cubic meters per day (m³/d). As such, total production in the country reached 2.65 million barrels of oil equivalent per day (boed), a volume 0.9% higher than in 2016. This mark also represents a new record for Petrobras.

The average annual production operated in the pre-salt layer (which includes the portions of Petrobras and its partners) in 2017 was also the largest in the company's history, reaching the mark of 1.29 million bpd. This volume exceeded the 2016 production by 26%. In addition, Petrobras and its partners have achieved monthly (1.36 million bpd, in the month of December) and daily (1.48 million bpd, last 12/4/2017) records in this layer.

Production growth in the Lula field - resulting from the interconnection of new wells to FPSOs Cidade de Saquarema, Cidade de Maricá and Cidade de Itaguaí, in addition to the start of operations at P-66 platform - and in the Lapa field - with the interconnection of new wells to FPSO Cidade de Caraguatatuba - both located in Santos Basin's pre-salt layer, have contributed to this result. Another important factor was the start of production at FPSO Pioneiro de Libra, which operates in the Mero field, also in Santos Basin's pre-salt layer.

Petrobras' gas utilization index in Brazil also achieved a record in 2017, reaching a level of 96.5%. This result is a consequence of the advances made in recent years by the Gas Utilization Optimization Program.

Oil and gas production abroad in 2017

Average oil production abroad in 2017 was 64,000 bpd, 20% below the volume produced in the previous year. The average natural gas production was 8.3 million m³/day, 39% below the 2016 production. The reduction resulted mainly from the divestments made, such as the sale of Petrobras Argentina.

Considering Brazil and abroad, the average production of oil alone, in 2017, amounted to 2.22 million bpd, and the average annual production of oil and gas was 2.77 million boed.

Oil and gas production in December

In December 2017, total oil and natural gas production was 2.72 million barrels of oil equivalent per day (boed), 2.62 million boed of which produced in Brazil and 100,000 boed produced abroad.

The average oil production in the country was 2.13 million barrels per day (bpd), in line with the volume produced in November. Natural gas production, excluding the liquefied volume, was 77.9 million m³/d.

Meanwhile, the oil and natural gas production operated in the pre-salt layer was 1.68 million boed, 2% above the previous month.

The average oil production abroad in December amounted to 60 million bpd, and the average production of natural gas was 6.7 m³/d.