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Petrobras' new Business PlanEarly today Petrobras released a summary of their Board-approved Business Plan for the next 5 years. I'm most interested in the business segments where Seadrill does business. More so than the news headlines on the totals for their whole business. Remember that the prior Business Plan, for 2014-2018, was released when oil was over $100 and before the Lava Jet/Car Wash scandal was uncovered. Thus, the new Business Plan is based on different assumptions, (1) oil at $60 for 2015 and $70 for 2016 and (2) new postponements and delays in projects largely due to limitations of the Brazilian suppliers who now cannot bid on work because they are named in the Lava Jet/Car Wash scandal. Here's a summary of how Petrobras plans to do their CAPEX for 2015-2019 ... versus what they published last year for that 5 year period 2014-2018: 2014-2018 2015-2019 change Upstream: Production Development $112.5 B $93.4 B Exploration 23.4 11.9 sub-total 135.9 105.3 ($30.6 B) Infrastructure & Support 18.0 3.3 Downstream 38.7 12.8 Gas & Power 10.1 6.3 All Other Areas 17.9 2.6 Total $220.6 B $130.3 B ($90.3 B) Seadrill money obviously comes out of both the Production Development and the Exploration segments ... which are the areas that have received the least CAPEX cuts. In fact, page 1 of the new Business Plan states "The investment portfolio of the Plan prioritizes oil exploration and production projects in Brazil, focusing in the (UDW) pre-salt." How this impacts Seadrill, time will tell. My hope is that last Friday's Board approval of the Business Plan, and its release today, will allow PBR management to move forward with announcing awards and contracts, and issuing tenders for the equipment and projects that had to be put on hold pending their extensive review of their business. T.D. Details of both 5 year Business Plans can be found on Petrobras' website. |
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Msg # | Subject | Author | Recs | Date Posted |
5144 | Re: Petrobras' new Business Plan | andersonole | 5 | 6/29/2015 11:03:10 PM |