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Petrobras will cut upstream investments by 25% (Brazil)

Brazil oil and gas company Petroleo Brasileiro (Petrobras) has released its Strategic Plan for 2017-2021 that aims to adapt to low international oil prices while cutting Petrobras huge debt.



As a result, the Strategic Plan includes a 25% reduction of its total planned investments compared to the previous Business Plan for the 2015-2019 period. Most of the US$24bn investments reduction between the two plans will affect Petrobras' upstream activities although they will still absorb 82% of the total investments (US$61bn over the period). In addition, the company plans to achieve its US$15.1bn divestment program over 2015-2016 while planning another US$19.5bn of asset sales for the two years to come.



However, the company domestic oil and gas productions are expected to increase respectively by 34% to 2.77 bbl/d and by 27% to 57 boe/d between 2017 and 2021.



The company plans to focus on oil and gas and then optimize the business portfolio by withdrawing entirely from biofuel production, LPG distribution, fertilizer production and petrochemical interests.