On Thursday, two sources said that Brazil’s national oil company Petroleo Brasileiro SA (Petrobras) would likely increase its capital expenditure (CAPEX) for its 2022-2026 plan on its release on November 25.
In the 2022-2026 plan, the company is expected to allocate USD60-70 billion in CAPEX, and the plan is in the final phase of drafting. Petrobras aims to focus on exploration and production in subsalt areas.
In comparison, the 2021-2025 CAPEX is at USD55 billion, after being lowered from the 2020-2024 figure of USD75.7 billion as Petrobras tried to conserve cash during the coronavirus pandemic.
According to a source, the company targets to accelerate the exploration in the subsalt area. It will also set targets for the conservation of green areas and reforestation projects to reduce its carbon footprint.
Petrobras does not predict that higher CAPEX would affect debt ratios. Its target for the gross debt should be around USD60 billion.
In the third quarter of 2021, the company slashed gross debt to USD59.6 billion, bringing forward a 2022 target.
