Petrobras plans divestments of US$13,7 billion by 2016.
Petrobras has approved a plan to divest US$13,7 billion between 2015 and 2016, a significant change from its 2014-2018 business plan, which projected divestments of up to US$11 billion over five years. The divestments, which generally involve the sale of assets, will be divided between exploration and production in Brazil and abroad, supply, and gas and energy. "This plan is part of the Company's financial planning aimed at reducing leverage, preserving cash, and focusing on priority investments," the company stated in a press release.
RIO DE JANEIRO (Reuters) - Petrobras approved a plan to divest $13,7 billion between 2015 and 2016, a significant change from its 2014-2018 business plan, which projected divestments of up to $11 billion over five years.
Embroiled in a billion-dollar embezzlement scandal, Petrobras is working to avoid raising capital in the market in 2015 and to minimize borrowing in the following two years.
Divestments, which generally involve the sale of assets, will be divided between exploration and production in Brazil and abroad (30 percent), supply (30 percent), and gas and energy (40 percent).
"This plan is part of the Company's financial planning, which aims to reduce leverage, preserve cash, and focus on priority investments, notably oil and gas production in Brazil in areas of high productivity and return," the company said in a statement.
The company emphasized that the approved amount may change depending on fluctuations in the price of Brent crude oil, the exchange rate, Brazilian and global economic growth, among other factors.
(By Marta Nogueira)