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Petrobras to spend $6bn on decommissioning of offshore infrastructure

Petrobras to spend $6bn on decommissioning of offshore infrastructure


Petroleo Brasileiro (Petrobras) revealed plans to spend $6bn to decommission 18 offshore platforms, subsea gas pipelines, and offshore wells.

The investment on decommissioning of infrastructure will be made till 2024, reported Reuters, citing a securities filing of the Brazilian national oil company.

Petrobras also said that it expects to get proceeds of $1bn from the divestitures it undertakes this year. Last year, the Brazilian firm reported proceeds of $14.4bn from asset sales.

Recently, the company announced the sale of all of its interests in the Albacora and Albacora Leste concessions in the deep waters of the Campos Basin in Brazil. The sale aligns with the portfolio optimisation strategy taken up by the firm.

Besides enhancing its capital allocation, the sale will help it to increasingly channelise its resources in deep and ultra-deep waters.

In late August, Petrobras, in line with its divestment strategy, agreed to sell its stake in the Cricaré cluster in Espírito Santo, Brazil for $155m to Karavan SPE Cricaré. The cluster to be sold comprises 27 onshore exploration and production concessions.

Petrobras wraps up full repayment of $2bn balance on revolving credit lines

In another securities filing, Petrobras said that it has completed the full repayment of the remaining $2bn balance on its revolving credit lines denominated in US dollars. which will now allow it to access new facilities.

The state-controlled oil firm stated: “With this prepayment, the company currently has US$ 7.6 billion available for new withdrawals on the revolving credit lines denominated in US dollars and R$ 4 billion in Reais.

“The operation will allow greater efficiency in cash management, in line with the company’s capital optimization strategy.”

The second quarter of 2020 saw the Brazilian national oil company report a 56% decline in gross profit at $3.41bn compared to $7.7bn in the same quarter of 2019.

The consolidated net loss attributable to its shareholders for Q2 2020 was $417m compared to $4.8bn of net income made in Q2 2019.

Source: NS Energy

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Published: 29-09-2020

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