Petrobras to cut debt, raise production

Brazilian NOC Petrobras will increase oil production by 10% to 2.3 million bopd and pay down USD 10 billion of debt by 2019, international media reported on Monday.

Petrobas is the most indebted energy company in the world, having registered net debt of USD 106 billion in 2014. The NOC is now on track to reach its debt target of USD 69 billion by the end of 2018, despite being unable to meet its divestment goals for the year, CFO Rafael Grisolia told Reuters.

Achieving debt restructuring targets and earning more revenues for pre-salt production will allow the company invest in oil and gas infrastructure such as LNG terminals abroad, facilitating Brazilian gas exports, Grisolia said.

Petrobras’ business plan had initially called for the NOC to raise USD 21 billion through asset sales; however, several transactions are facing delays in Brazilian courts, including the sale of the Transportadora Associada de Gas pipeline operator for USD 7 billion.