Petrobras reveals further cost reduction measures

Petrobras’ board has approved a Resilience Plan which includes taking further actions during 2019-2023 to secure the company’s long-term future.

Offshore staff

RIO DE JANEIROPetrobras’ board has approved a Resilience Plan which includes taking further actions during 2019-2023 to secure the company’s long-term future.

These include expansion of the ongoing divestment program, with more mature oil and gas fields to be offered in shallow waters and onshore, along with various midstream and downstream facilities.

Petrobras said divestments of assets which the company does not fully control should improve its capital allocation, increasing value generation and allowing it to further bring down its debts.

Another proposal is to reduce manageable operating costs by $8.1 billion from the $122.6 billion budgeted in 2019-2023. Ways of doing this may include changes in processes and digital transformation.

However, the approved 2019-2023 investment program remains unchanged, along with the present schedule for new oil and gas production systems, aside from Búzios 5 in the Santos basin.

In this case start-up will be pushed back from 2021 to 2022, due to delays with the platform charter procurement process, with an estimated production impact of 60,000 boe/d in 2022-2023.

03/11/2019

More in Regional Reports