Petrobras, Brazil’s state-run energy giant, will sell off $13.7bn in assets over the next two years, it announced. Stocks reacted positively to the news on Tuesday, gaining 2.3%.
The size of the sell-off by the scandal-tainted oil and gas entity exceeds that of a previously announced divestiture plan which had envisaged no more than $11bn by 2018.
In a revised five-year capital spending plan filed this week, the company’s divestitures in exploration and production may account for 30% of asset sales targeted in 2015 and 2016. Gas and energy assets may account for 40% of that amount, with the remainder from assets related to distribution.
Higher amounts of proceeds from the latest divestment plan will be used to lower debt and increase liquidity while allowing the company to focus on developing its most prolific fields in Brazil.
The accelerated sell-off is part of new management’s reaction to the multibillion-dollar money laundering and graft scandal surrounding the firm.