Dallas, Texas 01/29/2014 (FINANCIALSTRENDS) – The $76 billion market capped Brazilian oil and gas giant Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) announced earlier this month, that it has successfully commissioned and brought online its third and biggest liquefied natural gas degasification complex in Bahia state of Brazil. The plant has a maximum capacity of 14 million cubic meters of oil equivalents per day and contributed its first yield of gas into the national grid network on 24th January. The successful production supply to the national grid, culminates the more than two years of efforts put in by Brazil’s biggest energy company to expand its gas production capacity. The entire project has been brought up with a sunk in investment of close to Brazilian Rand $1 billion as per the company announcement.
Post the augmentation of gas production, Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) daily output goes up to a impressive 41 million cubic meters per day from its previous capacity of 27 million cubic meter per days. This was produced form the oil majors existing infrastructure at Peccem and Guanabara Bay.
Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) thanks to its ownership by the Brazilian government has been tasked with providing for the growing gas needs of the emerging market economy and has traditionally been hampered by government’s affordable pricing policies of the petroleum products to report healthy profits in the past few quarters.
In spite of these structural challenges the firm has plans of ploughing in capital to the tune of $237 billion over the next five years, into expanding its production facilities and has also step up its exploration efforts in order to develop a sustainable pipeline of fossil fuel for its country’s development. The stock price has settled at $11.66 per share, down 4.74 percent during last week trading and 41 percent below its 52 week high price point.