In response to the coronavirus and market oversupply, Petrobras slashed its 2020 investment spending plan by almost 30 percent and will trim around 100,000 b/d of domestic production.
Petrobras now plans to invest around $8.5 billion this year, compared with $12 billion earmarked under its $75.7 billion 2020-2024 business plan. The spending cuts will come from postponed exploration activities, interconnection of wells, and construction of production and refining facilities.
The company is shutting in around 23,000 b/d of production from shallow-water deposits, but it will proceed with the sale of shallow-water assets, which form a small part of its $20 billion-$30 billion divestment portfolio. The company says these cuts were made based on questions of economic feasibility and the result of studies that preceded the crisis.
Petrobras produced around 2.139 million b/d of oil in February, down almost 8 percent compared with January. The firm had set a 2020 domestic output of 2.2 million b/d, just above the 2019 level.
The company also plans to reduce around $2.4 billion from staff expenses, and $2 billion from operating costs. Petrobras has also pushed around $1.7 billion in dividend payments to 15 December.
