November 9, 2010 / 3:33 PM / 9 years ago

Brazil's Petrobras says to borrow $32 bln by 2014

* Company reduces previous estimates for borrowing

* Sees oil output near 2 million bpd by year end

RIO DE JANEIRO, Nov 9 (Reuters) - Brazilian state oil company Petrobras (PETR4.SA) will raise $32 billion by 2014, CEO Jose Sergio Gabrielli said on Tuesday, as part of a five-year investment plan focused on developing offshore crude reserves.

The company previously said it would borrow $40 billion during the period and $60 billion over the next five years, though Gabrielli said those figures were based on rough estimates.

“Those were estimates we made without having all the numbers,” Gabrielli said.

In September the company issued $70 billion in shares as part of the world’s largest-ever stock offering that involved an oil-for-shares swap between Petrobras and its controlling shareholder, the Brazilian government.

Petrobras plans to invest $224 billion for the 2010-2014 period, its largest-ever investment plan that is meant to help Brazil become a major energy exporter by tapping the vast deep water reserves buried deep under the ocean floor in a region known as the subsalt.

He said the company’s average oil production in Brazil in 2010 would be slightly below the bottom end of its target because of a greater amount of planned maintenance on oil platforms than originally expected.

Petrobras’ 2010 target is 2.1 million barrels per day (bpd), plus or minus 2.5 percent, meaning average production for the year would be below 2.05 million barrels per day.

Gabrielli confirmed there has been a two-week delay in a bidding round for 28 deep water drilling rigs that will be built in Brazil and used in the development of the subsalt.

Petrobras delayed the opening of bids because some shipyards have run into problems acquiring the necessary environmental licenses. (Reporting by Brian Ellsworth and Denise Luna. Editing by Robert MacMillan)

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