Petrobras CEO expects growth resumption in three years

In three years, Petrobras will resume growth; and in five years, it will become the fourth or fifth largest company in the sector, producing 3.4 million oil and gas barrels per day. The forecast was submitted by the company's CEO, Pedro Parente, to President Michel Temer, during a meeting at Palácio do Planalto, the presidential office.

"I brought the company's strategic plan for the period between 2017 and 2021. We present here the main features of this plan. It was a technical presentation," said the company's CEO.

According to him, one of the company's plan is to faster reduce the company's debt. Over the next three years, the expectation is that the company will resume growth.

The Petrobras CEO said Temer has shown special interest in the possibility of quickly attracting larger amounts of investment in gas and oil sectors, should a favorable regulatory scene be developed.

"Changes in the regulatory scene can happen in months, and it will provide better and more favorable conditions for attracting investments," he added.

Parente praised the possibility of Congress to approve a bill that discharges Petrobras' obligation to be the sole operator of pre-salt fields. "The company as a whole will only gain from it. Instead of having an obligation, it will now have a choice. This is a huge benefit for a company facing a period of financial constraint. If we are obliged to participate in all fields, we will have no resources. It would take a longer to explore these fields," he said.

In Parente's view, the country would also benefit, since it would attract significant investments for growth and for generating wealth and jobs in the country.

Business and Management Plan
 
In the 2017-2021 Business and Management Plan, published on Aug. 20, Petrobras estimates lower investments in the next five years. The document states that the state-led company will also exit biofuel production, LPG (cooking gas) distribution, fertilizer production, and the company's investments in petrochemicals in order to "guarantee new technologies in areas with high development potential."

The forecast is $74.1 billion in investments, down 25% compared to the previous plan (from 2015-2019), revised in January this year forecasting $98.4 billion in investments.

Translated by Amarílis Anchieta