Petrobras pulls back spending

Spotlight falls on pre-salt production as Latin American NOC dials down capex

Brazilian state-owned oil company Petrobras has downgraded its five-year upstream spending programme. The firm in September cut $14-24bn from an earlier capex budget of $64bn after reviewing the economic impact of the downturn on its portfolio. Lowering gross debt has been a key priority for Petrobras since it peaked at over $100bn in 2015. Over the past four years, austerity measures and an aggressive divestment strategy have slashed $39bn from the company’s debt obligations. And it plans to reach an ambitious gross debt target of $60bn by 2022—a 34pc reduction from last year. But debt has again started to rise this year. Petrobras added another $4bn to gross debt over the first two quarter

Welcome to the PE Media Network

PE Media Network publishes Petroleum Economist, Hydrogen Economist and Transition Economist to form the only genuinely comprehensive intelligence service covering the global energy industry