Petrobras cuts spending 25 percent, will sell assetsStaff Writer | September 21, 2016
Petrobras cut planned investments by 25 percent in a drive to reduce the largest debt burden among global petroleum producers and revive investor confidence.
Oil exploration $74.1 billion in capital spending
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. ■