Petrobras to announce new strategic plan in March

Petrobras is planning to announce its new strategic business plan in March. According to CEO Aldemir Bendine, the company decided to put off the release of a new plan so they can introduce deeper changes amid the high volatility of oil prices in the international market. The plan is at its final completion stage and should be announced along with Petrobras's budget.

According to Bendine, the current volatility scenario is “extremely challenging” and an oil company's management must be braced for “absolute stress.” A price recovery would put Petrobras in a better position, but persisting difficulties will force the company to adapt.

In the beginning of 2015, the company based its decisions on a scenario where oil was sold at $40 with dollars at R$4. “[This scenario] did come about in the end of the year, and the company was able to accommodate it. Petrobras did a very good job [of planning ahead for market conditions] in 2015 and now we're gearing up to operate with oil at $30, $20, whatever. Prices change cyclically all the time,” he said, adding that the purpose of the changes is to streamline the company to make it more resilient to this volatility.

Without mentioning the exact figures, Bendine assured that the company closed out last year with a “robust bottom line” that can see it through until mid-2017, even amid the current adverse situation. “Petrobras has responded really quickly to this situation and redesigned its plans—including investment cuts—to improve management,” he said.

About Rio's Petrochemical Complex (COMPERJ), the CEO said Petrobras is still looking for a partner that, in addition to helping with management and capital, puts investment into the completion of COMPERJ as a refinery rather than a petrochemical complex. “This was outlined in our latest business plan,” he said.

Translated by Mayra Borges

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