Petrobras Chief Sees High Oil Prices, Growing Fleet

Petrobras Chief Sees High Oil Prices, Growing Fleet

The head of Petrobras says global oil prices are likely to stay high, and the Brazilian state-run oil giant plans to significantly expand its fleet of drilling rigs and other vessels in the coming years.

Speaking at a gathering organized by the Brazilian American Chamber of Commerce in New York, Petrobras President and Chief Executive Jose Sergio Gabrielli said the price of oil is being driven by strong global demand and tight supplies.

Gabrielli said Petrobras expects to lease 57 new drilling rigs capable of drilling in water deeper than 2,000 meters (6,562 feet) between next year and 2017.

About half of those rigs are already contracted, while another 28 must still be leased and are expected to start coming online within five years. Gabrielli said the company will require that those 28 be built in Brazil.

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