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Petrobras cuts investment by 25% to $98.4 billion

Staff writer ▼ | January 13, 2016
Petrobras board approved changes to the 2015-2019 Business and Management Plan. The revised plan provides for $98.4 billion investment, down $32 billion, or roughly 25%, from the original $130.3 billion.
Oil exploration   2015-2019 Business and Management Plan
The revision takes into consideration the new oil price and exchange levels, and intend to preserve “the fundamental goals of deleverage and value creation for shareholders” that the plan sets forth.

The company will allocate $80 billion, or 81% of total investment, to exploration and production; $10.9 billion (11%) will be spent on refining and supply; and $5.4 billion (6%), will go into gas and energy. Other sections of Petrobras’ business will see $2.1 billion in investment.

In exploration and production, $4.9 billion of investment will be earmarked for activities in foreign countries.

Divestments (asset sales) for 2015-2016 have been set at $15.1 billion, a much higher sum than 2015’s $700 million figure.

Investment portfolio adjustments caused the oil output projection for Brazil to drop from 2.185 million barrels per day to 2.145 million barrels per day in 2016, and from 2.8 million to 2.7 million barrels per day in 2020.

Petrobras’ 2015 oil output in Brazil averaged 2.128 million barrels per day, exceeding the previously set target of 2.125 million barrels per day by 0.15%, and up 4.6% from 2014 levels (2.034 million barrels per day).

“This result is the company’s highest-ever annual oil output, surpassing the previous record set in 2014,” the company said.