Petrobras announced that it will adopt, as of today (1/04), new measures to ensure the sustainability of the company "in what constitutes the worst crisis in the oil industry in the last 100 years". The company had already announced on the last 26th a series of actions to balance its cash amid the shock of oil barrel prices and the impact of the new coronavirus (Covid-19) pandemic on the international market.

The current scenario is marked by an unprecedented combination of an abrupt fall in the price of oil, a surplus in the market and a strong contraction in global demand for oil and fuels. These new measures involve reducing oil production, postponing cash disbursements and reducing costs ”, informs Petrobras, in a note.

As of this Wednesday, oil production will be cut by 200 thousand barrels per day, a volume that includes the reduction announced on March 26 by 100 thousand barrels per day.

According to the statement from the state-owned company, for the definition of fields that will have their production reduced, Petrobras will take into account market and operational conditions. The duration of the restriction, as well as potential increases or decreases, will be continuously assessed

The company also said it is adjusting the processing of its refineries, in line with the demand for fuels.

Cut spending 

As part of the actions aimed at promoting the announced cut of US $ 2 billion in operating expenses in 2020, the company decided to save approximately R $ 700 million in personnel expenses with the postponement of payment, between 10% to 30%, of the monthly remuneration. other employees with a paid function (managers, coordinators, consultants and supervisors); temporary change from shift and on-call to administrative arrangements for about 3,200 employees and temporary reduction of the workday, from 8 hours to 6 hours, for about 21,000 employees.

“Petrobras reinforces its commitment to the management of its portfolio and to its strategy supported by the five pillars: maximizing return on capital, reducing the cost of capital, incessant search for low costs, meritocracy and respect for people, environment and safety . The current crisis highlights the importance of these pillars that should continue to be implemented with even more focus and intensity ”, says the note.

The company said it continues to monitor the market and, if necessary, make further adjustments.

Transpetro 

Transpetro, a wholly-owned subsidiary of Petrobras, also approved a resilience plan, which consists of measures to reduce the cost structure, both of operating expenses and investments, postponing or optimizing disbursements, in the amount of R$ 507 million in 2020.