Petrobras cuts five-year spending plans by 25%

Brazil’s state-run oil company Petrobras has slashed its spending plans for the 2015 – 2019 period by 25%.

In its announcement on Tuesday, the company said its board of directors had approved „certain adjustments to the 2015-2019 Business and Management Plan (2015-2019 BMP).“

These ‘certain adjustments’ mean that Petrobras has lowered its spending amounts for the upcoming period, putting the priority on domestic oil and gas exploration and production, especially in the offshore, pre-salt layer.

Petrobras has now reduced its 2015-2019 capex by around $32 billion, to $98.4 billion, from the previous amount of $130 billion, through portfolio optimization and exchange rate effect.

Divestment plans for 2015-2016 were maintained at US$15.1 billion, having reached US$0.7 billion in 2015.

Petrobras’ oil production in Brazil averaged 2.128 million bpd in 2015, 0.15% up on the target of 2.125 million bpd, 4.6% more than in 2014 (2.034 million bpd) and a new annual record for the company, exceeding the previous record set the year before.

According to a chart presented by Petrobras, the company believes its production in 2016 will average 2.128 million bpd. While this is an expected increase versus 2015, the expectation has been lowered from the original one for 2016, having been at 2.185 million bpd.

Offshore Energy Today Staff