Petrobras to Reduce Debt, Expand Deepwater Oil Production

Petrobras’ administration board has approved an update to its plan for the next five years that is expected to call for the state-run oil and gas company to dump its gas distribution as well as its liquefied petroleum gas and biodiesel business, according to media reports.
Instead, Petrobras will focus on two things in the coming years: shrinking its debt load and deep water and ultra deep-water oil exploration and production, Oil Price reported.
The firm hopes to reduce its debt load in part by increasing productivity and lowering costs through digital transformation. The rest will be achieved by unloading unwanted assets.
“The goal now is to be the best energy company adding value for shareholders, with a focus on oil and gas and security, respecting both people and the environment,” Petrobras said.
For gas, Petrobras will focus on selling its own gas only, bowing out of the gas distribution and transport elements altogether.
Petrobras CEO Roberto Castello Branco said in January after taking office that he would focus on reducing debt, selling assets, and cutting costs.
Petrobras has already curbed its debt load to a substantial degree, and at the end of 2018, Petrobras had cut it down by 18% to land just shy of $70 billion. Its debt load in 2015 stood at $100 billion.