Brazil output falls to near 3-year low

by on November 8, 2012 11:15 pm BST

Brazil produced an average 2.38 million barrels of oil and natural gas equivalent per day in the month, down 3.25% from 2.46 million in August, the regulator said according to Reuters.

Oil and natural gas output in September was 5.4% less than the 2.51 million boepd a year earlier and the lowest since January 2010, the news wire said.

Brazilian oil output has suffered in recent months because of declining output from mature fields owned by state-led oil company Petrobras and the shutting of ageing oil platforms for maintenance.

Petrobras’ output is falling despite the company’s $237 billion five-year expansion plan, the world’s largest corporate spending program.

Crude oil output fell to an average 1.92 million barrels per day in September, compared with 2 million bpd in August. Production fell 8.4 percent from the 2.099 million bpd the same month a year ago.

Oil output was at its lowest level since July 2009.

Shell surpassed Norway’s Statoil ASA to become the No. 2 producer after Petrobras, the regulator said. Shell produced 37,253 boepd in September, 2% less than in August.

Statoil produced 35,355 boepd in September, 6.3% less than a year earlier.

Petrobras’ 2.16 million boepd of output represented 91% of Brazil’s production.