Petrobras issues stark warning on oil
Brazilian heavyweight announces huge losses on assets it believes are no longer commercially viable
Forecasters have for years predicted a Brazilian oil boom. State firm Petrobras projected its crude production would grow rapidly to 3.5mn bl/d by 2024. With an expected average Brent price of $65/bl, the potential revenue was enormous. But the collapse of crude during the first quarter of this year, combined with the crippling impact of the Covid-19 pandemic, has meant Petrobras’ assumptions now look way off the mark. The firm has downgraded its short and long-term price guidance and warned it will take years to recover to anywhere comparable to its original Brent prediction. “We are carrying out a full review of the portfolio and believe that the recovery will be slow and plateau to $50/b
Also in this section
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields
23 April 2024
Cheaper Russian barrels and lower overall crude prices have helped cut key oil consumer’s import bills in election year
22 April 2024
Pursuing three different goals as part of the same package may mean achieving none of them
22 April 2024
Beijing’s renewed targeting of NOC management could threaten investment