Petrobras plans further 2016/20 investments cuts, says Sao Paulo media

Friday, January 8th 2016 - 18:15 UTC

Full article 10 comments

Brazil state-run hydrocarbons giant Petrobras will reportedly present a five-year investment plan next month with a target lower than the US$19 billion plan announced last year. Despite two budget cuts last year, Petrobras' plans for the 2016 to 2020 period will include a further drop, with the cuts expected to come from onshore and shallow-water areas, according to a report in the Brazilian daily Estado de S Paulo. Read full article

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yankeeboy
The debt-laden company is thought to have sufficient cash to meet its commitments through July 2017.

I wonder what price they used for oil to cash flow this.
I bet it was 40 and not 20.
:)
Jan 08th, 2016 - 06:35 pm - Link - Report abuse 0
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Brasileiro
Any price above US$ 8 is already profitable.
Jan 08th, 2016 - 08:41 pm - Link - Report abuse 0
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yankeeboy
Profitability isn't the problem.
Cash flow is
They have 10X more debt than they're worth.
And they can't sustain that for much longer
Jan 08th, 2016 - 09:12 pm - Link - Report abuse 0
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Brasileiro
Gasoline in Brazil today is one of the most expensive in the world. Even with the devaluation of the real gasoline should be half the price it is today.

The debt by 2018 is over!
Jan 08th, 2016 - 09:23 pm - Link - Report abuse 0
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yankeeboy
You don't understand simple math do you?
Jan 08th, 2016 - 10:35 pm - Link - Report abuse 0
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Brasileiro
It's like this: the Brazilian people pay for Petrobras to continue developing our prospecting for oil in deep seas.

It matters little what is worth or not worth the oil. For us the important thing is to gain knowledge to advance our people about the future.

Do you understand?
Jan 08th, 2016 - 10:48 pm - Link - Report abuse 0
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yankeeboy
6. Like I said above PBR will go bankrupt and whatever is left will be renationalized.
It is a toxic company
with 10X more dept than its worth
When oil goes into the $20 they won't have enough cash to keep it afloat.
Then the gov't can do whatever it wants with whatever assets remain.

Just wait, the catastrophe that is Brazil is just starting to roll out...there's a long way to go to the bottom but it will come quicker than you imagine.
Jan 09th, 2016 - 01:07 pm - Link - Report abuse 0
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Jack Bauer
RIO DE JANEIRO, Aug 7 , 2015 (Reuters) - Brazil's state-run oil company Petroleo Brasileiro SA reduced its offshore subsalt field extraction cost to $8 a barrel from $9 a barrel, executives said in a conference call on Friday.

@ 2,4,6 BRasshole,
you are just a parrot repeating what you hear, without understanding one word. Not worthwhile trying to explain it to your under-developed brain.
Jan 09th, 2016 - 05:24 pm - Link - Report abuse 0
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Conqueror
@4. Petrol in Brazil works out to be 58 British pence per litre. In the UK we're still trying to get under 100 pence per litre. You really are an ignorant prat.
@6. We understand that you're a government paid mouthpiece with no intelligence.
Jan 09th, 2016 - 05:48 pm - Link - Report abuse 0
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ChrisR
Brasso needs trying to pay for petrol in Uruguay with The Broad Fraud in charge.

During 'No Money Pepe's reign' ANCAP, the nationalised fuels company lost U$D 600 MILLION over 4 years and now the new Vasquez appointed head is demanding U$D 1,000 MILLION for the business over the next 4 years!

These fucking idiots have never understood business other than 'if it makes a profit it's bad for the employees' as the unions and 'the poor' still claim.

Still, if they keep on like this with Vasquez being held to ransom by Mujica in the 'other places' they won't squeak in again like they did last time.
Jan 10th, 2016 - 06:44 pm - Link - Report abuse 0
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