Petroleo Brasileiro SA, the most indebted publicly traded oil producer, has borrowed $7 billion from banks and multilateral agencies this year after yields on its bonds jumped in the past six months.
The loans, which are part of plans to raise $61 billion in five years, will be followed by bond sales this year when “market conditions are right,” Chief Financial Officer Almir Barbassa told reporters in Rio de Janeiro today. Yields on the Rio de Janeiro-based company’s $5.25 billion of 2021 debt reached a 14-month high of 4.2 percent on April 2.
Petrobras is raising cash to fund the development of the world’s biggest oil discoveries this century as part of a $237 billion, five-year investment budget. The company plans to raise about $20 billion through bond sales and loans this year, Barbassa said.
The state-run company has earmarked 62 percent of its spending plan for exploration and production, most of which for recent discoveries in so-called pre-salt deep-water deposits. It currently produces 300,000 barrels of oil a day in the area, more than total output for Pacific Rubiales Energy Corp. (PRE) or Pan American Energy LLC, the two largest Latin American oil producers that aren’t state-controlled.
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