Petrobras’ Could Cut Logistics Costs by R$1 bi

Maritime Activity Reports, Inc.

November 30, 2014


One of a series of management improvement measures adopted by Petrobras in the last two years, the Logistics Infrastructure Optimization Program (Infralog) should generate approximately R$1.8 billion (US$719 million) in savings for the company from the time it was created (November 2012) until the end of this year. By 2013, the program had already cut costs by around R$800 million. Petrobras’ target is to save R$4 billion (US$1.6 billion) in four years (from November 2012 to December 2016). Infralog covers logistics actions throughout Brazil, encompassing the areas of oil and natural gas exploration, production, and transportation, and refining, distribution and sale of products.

The solutions adopted include adapting and expanding the capacity of pipelines serving Petrobras’ refineries. This has enabled pipelines built to pump refinery production to more distant markets to be adapted to bring in products from other components of the Petrobras system. The pipelines’ capacity has been increased merely through increased pumping and the use of friction reduction products.

Petrobras has also opted to use existing ports and airports rather than building new support bases for its ship and helicopter operations. In addition, the use of buoys – simpler to build and operate – has replaced projects to build terminals for petroleum transfer operations.

Infralog is one of Petrobras’ structuring programs aimed at setting new benchmarks for productivity, management and strict control in its investment projects, ensuring disciplined use of the financial resources provided as part of the 2014-2018 Business and Management Plan. The company’s other structuring programs are the Operating Cost Optimization Program (Procop), the Well Cost Reduction Program (PRC-Poço), the Operational Efficiency Improvement Program (Proef), the Divestment Program (Prodesin), and the Subsea Installations Cost Reduction Plan (PRC-Sub).

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