Petrobras Targets Higher FPSO Output, Mulls Stake in Biofuel Firm Raízen

Brazil’s state-controlled oil producer Petróleo Brasileiro SA is in talks to lift production limits at three of its floating production, storage and off-loading vessels, according to Exploration and Production chief Sylvia dos Anjos. Output at the Almirante Tamandaré unit in the prolific Búzios field would rise to about 250,000 barrels a day from 225,000 reached last week, while increases are also being pursued at the Marechal Duque de Caxias FPSO in the Santos Basin and at a third, undisclosed vessel. Anjos said Petrobras is negotiating with contractors SBM Offshore and Modec to adjust existing agreements that cap output, adding that both companies have shown “good will” toward the revisions. The move underscores the company’s push to squeeze more barrels from assets that have already hit nameplate capacity, bolstering supply from Brazil’s deep-water fields. Separately, shares of sugar-and-ethanol producer Raízen SA soared after newspaper O Globo reported that Petrobras is considering an investment in the biofuels company. While the state major has not commented publicly on the report, the prospect of a tie-up highlights Petrobras’s longer-term interest in expanding beyond oil production into low-carbon fuels.