Brazilian giant Petróleo Brasileiro (Petrobras) entered into a US$2 billion deal with the Industrial and Commercial Bank of China Leasing (ICBC) for a finance lease on two existing platforms.
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Image from Petrobras. |
The 10-year deal for the P-52 and P-57 platforms is part of a cooperation agreement signed in May 2015 to create a long-term relationship between Petrobras and ICBC.
“The funds will be available for disbursement after the internal approvals of both institutions,” Petrobras said in a statement. “This transaction is part of Petrobras' strategy to diversify its financing sources and represents an anticipation of the financing activities planned for 2016.”
Last week, Petrobras announced a revision to its investment plans for this year and next year that will see a $3 billion and $8 billion decrease in spending, respectively.
For 2015, the company’s revised numbers drop the proposed investment from $28 billion down to $25 billion. For 2016, the proposed $27 billion will be decreased to $19 billion.
Earlier this week, Petrobras said it did not present any proposals in the National Petroleum, Natural Gas and Biofuel Agency’s (ANP) 13th bid round, based on a deep technical and economic analysis of the blocks on offer and the current state of its oil and gas reserves.
“As provided for the 2015-2019 Business and Management Plan, Petrobras is prioritizing the development of its portfolio of exploration and production assets, with a focus on capital discipline and profitability. These measures are part of Petrobras in leverage reduction strategy and value creation for shareholders,” the company said.
ANP’s 13th bid round fell flat last week, with only 37 out of 266 blocks sold. It only brought about $89 million out of a possible $256 million in minimum bids on all blocks or 12%.
Petrobras’ absence from the bid round is thought to be a factor.
It’s too early to say what went wrong at Wednesday's oil auction. Petrobras had been a driver of past auctions and its absence may have kept others away, Magda Chambriard, ANP general director told Reuters.
Read more:
Petrobras cuts investments further
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