POST Online Media Lite Edition


Petrobras cuts spending 25 percent, will sell assets

Staff Writer |
Petrobras cut planned investments by 25 percent in a drive to reduce the largest debt burden among global petroleum producers and revive investor confidence.

Article continues below

Petrobras contributes about 10 percent of the nation's economic output and Brazil's government, the company's controlling shareholder, is counting on it to help pull the economy out of its worst recession in decades.

Petrobras pledged up to $74.1 billion in capital spending for the 2017-2021 period compared with a $98.4 billion target in the prior four-year 2015-2019 plan, according to a securities filing.

This program outlines Petrobras' smallest capital budget since 2006 and fell short of the $82.7 billion average forecast of eight analysts surveyed by Reuters.

Petrobras reaffirmed its goal of $15.1 billion in asset sales for the 2015-2016 period and plans to raise an additional $19.5 billion through divestments and partnerships between 2017 and 2018.

The company said it could sell as much as $40 billion of assets over the next 10 years.

What to read next

Petrobras may incur $20 billion charge in delayed Q3 results
Petrobras lost 2.29 million barrels of oil thanks to strike
Petrobras will sell 25% of BR Distribuidora