Rio De Janeiro — Brazilian state-run oil company Petrobras is set to revise its five-year strategic plan due to lower Brent crude oil prices, Chief Executive Magda Chambriard told analysts during the firm’s first-quarter earnings call on Tuesday.
Chambriard said that Brent prices at $65 would require the firm to simplify their projects, adding that the moment was for cost-cutting and austerity measures.
“When the price goes up, we feel more comfortable throwing ideas around. When the price goes down, it is time to tighten our belts,” said Chambriard.
Petrobras is set to unveil its next strategic plan at the end of the year.
The oil giant is also enacting cost-cutting measures, Chief Financial Officer Fernando Melgarejo said, although maintaining that the capital expenditure for 2025 would be kept at the previously estimated $18.5 billion.
The executive said that before thinking of cutting investments, Petrobras would focus on cutting costs by reducing inflationary effects, simplifying ongoing projects and prioritizing projects that provide it with positive cash-flow on a shorter term basis.
“And we will continue studying (cost-cutting) measures,” said Melgarejo.
Reporting by Fabio Teixeira; Editing by Gabriel Araujo – Reuters
