RIO DE JANEIRO: Brazil's Petrobras on Monday projected a rapid jump in oil exports and increased divestments in the 2021-2025 period, as the state-controlled firm doubles down on its core strategies of boosting exports and reducing debt.
In a virtual presentation to investors during the firm's annual Petrobras Day, Petroleo Brasileiro SA, as the company is formally known, said domestic oil sales should fall to 1.252 million bpd in the five-year period ending in 2025, versus 1.348 million bpd in the five years ending in 2019.
Crude exports, however, should climb to an average of 891,000 bpd from the 445,000 bpd that the company averaged in the period ending in 2019. China has emerged as Petrobras' most important export market, but Chief Executive Roberto Castello Branco has said the company is working to develop additional markets, such as India.
In the same presentation, which was accompanied by executives' comments, the company said it planned to divest $25 billion to $35 billion in assets from 2021 to 2025. That was up from the $20 billion to $30 billion in divestments Petrobras had projected for 2020-2024.
The comments and presentation reflected plans by Petrobras to shift back into gear, following the crude price crash and economic downturn brought about by the pandemic, which slowed its divestment program to a crawl.
The comments followed and elaborated upon the company's five-year business plan released last week, which disappointed investors due to a lower-than-expected production outlook for 2021.
Brazil-listed preferred shares in the company fell 1.8% in afternoon trade, slightly underperforming Brazil's benchmark Bovespa equities index, which was down 1.5%.
Regarding asset sales, executives said the divestment of Petrobras' gas distribution unit Liquigas should be formalized in December, while preliminary sale agreements for the company's REFAP and REPAR refineries should be signed in the first quarter.
The company, however, will have to restart the leasing process for a natural gas facility in Bahia state in early 2021, after the only bidder in the previous round was disqualified due to corruption-related concerns, Petrobras downstream head Anelise Lara said.
Petrobras will also need to re-model the divestment of its Gaspetro natural gas unit, after antitrust authorities rejected the sale of the unit earlier in November.