Petroleo Brasileiro SA (Petrobras) is reducing its planned capital expenditures for 2015-19 by $32 billion from the previously reported amount to $98.4 billion.
The new total is based on a newly projected average Brent crude oil price in 2016 of $45/bbl, down $10/bbl from the previous projection made last October. The company attributes the cut to portfolio optimization comprising $21.2 billion and an exchange rate effect of $10.7 billion.
The adjustments are expected to result in reductions in projected Brazilian oil production in 2016 to 2.145 million b/d from 2.185 million b/d; and, in 2020, to 2.7 million b/d from 2.8 million b/d.
Petrobras’s 2015 oil production in Brazil averaged 2.128 million b/d, slightly higher than the target of 2.125 million b/d and 4.6% higher than 2.034 million b/d in 2014.
Intended divestments in 2015-2016 will remain at $15.1 billion (OGJ Online, Oct. 6, 2015). The company divested $700 million in 2015.