Brazil’s state oil giant to cut investment due to COVID-19

RIO DE JANEIRO (Xinhua) – Brazil’s state-owned oil company Petrobras on Monday announced the decision to cut investment by USD24 billion due to the financial crunch caused by the COVID-19 pandemic.

The company’s 2021-2025 Strategic Plan calls for investment of USD40 billion to USD50 billion, significantly less than the USD64 billion proposed in its 2020-2024 Strategic Plan. The new plan also calls for selling off more assets in the areas of oil exploration and production.
“The revision seeks to maximise the value of the exploration and production businesses, targetting world-class assets in deep and ultra-deep waters,” it said.

Petrobras forecasts that so-called pre-salt deposits in deep waters off the Atlantic coast, which are beginning to be explored, will represent 71 per cent of total investment in the exploration sector over the 2021-2025 period, up from 59 per cent in the previous plan.