Petrobras falls short of two-year target for asset divestment

Petrobras falls short of two-year target for asset divestment

Brazil’s faltering state oil giant Petrobras admitted on Wednesday that it will come up $1.5bn shy of its targeted divestment tally for the two-year period that is about to end, according to Reuters.

Petrobras, which has vast offshore oil and gas interests, had set a 2015-2016 sell-off goal of $15.1bn.

Staggering from a huge debt burden and reeling from the effects of a massive bribery scandal that has shaken Brazil to the core, Petrobras has been striving to reduce its red ink.

To do so it has used a range of means, including staff layoffs, budget cuts, cancelled contracts, investment retrenchment and selling of assets.

Petrobras said that it would have met the two-year mark if not for a court injunction that blocked its attempt to sell shares of two offshore oilfields – 100% of Tartaruga Verde and a 50% stake in Bauna – to Australian firm Karoon Gas.

As a result of falling short this time, Petrobras has revised its asset sales target for 2017-2018 to $21bn.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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