Petrobras said an oil production cut of 100,000 b/d was expected by the end of March due to the combination of oversupply and reduced global demand caused by the effects of COVID-19.
Petrobras said an oil production cut of 100,000 b/d was expected by the end of March due to the combination of oversupply and reduced global demand caused by the effects of COVID-19.
Planned investments for 2020 have been cut to $8.5 billion from $12 billion, mainly due to postponements of exploratory activities, interconnection of wells and construction of production and refining facilities, and the devaluation of the Real against the US dollar.
The company will reduce operating expenses an additional $2 billion by mothballing shallow water field platforms with higher lifting cost per barrel, which started to have negative cash flow. Current oil production of these fields is 23,000 b/d. Additional reductions will come from lowing expenses with interventions in wells and optimization of production logistics. New contracts will be postponed for 90 days.