Breaking News

Tesco Falls as Much as 11.8% After Saying Profit Overstated
Tweet TWEET

Petrobras Targets Cost Cuts of $15.4 Billion by 2016

Petroleo Brasileiro SA (PETR4), the world’s most indebted publicly traded oil company, plans to cut operating costs by 32 billion reais ($15.4 billion) between 2013 and 2016 as it ramps up offshore crude reserve investments.

Lowering fuel consumption at offshore production platforms and reducing chemicals consumption at refineries are among measures to be put in place, the Rio de Janeiro-based producer said today in a regulatory filing.

Petrobras will seek to “increase the productivity of the company’s operational processes,” it said in the filing.

Petrobras’s short and long-term debt totals $92 billion, more than any other publicly traded oil company, according to data compiled by Bloomberg. The company plans to invest $236 billion between 2012 and 2016, with the majority earmarked for exploration and production as it seeks to develop the largest offshore oil discoveries in the Americas since 1976.

Since becoming chief executive officer in February, Maria das Gracas Silva Foster required company divisions to make financial revisions, unveiled a $14.8 billion divestment plan and created a program to increase production efficiency at the offshore Campos Basin -- the company’s main basin.

Petrobras rose 3.8 percent to close at 20.93 reais in Sao Paulo, the highest since Nov. 7.

To contact the reporter on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.