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Petrobras eyes deep water oil

Thursday, May 18, 2017 - 01:47

The CEO of the Brazilian state-run oil company told Reuters editors that it could further cut costs to invest beyond its $75 billion capital expenditure budget. Fred Katayama reports.

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Petrobras has deep interest in investing in deep water oil in its native Brazil. The debt-laden state-run oil company formally known as Petroleo Brasileiro boasts a $75 billion capital expenditure budget. Meeting with Reuters' editors in New York, CEO Pedro Parente says it'll cut costs if it wants to invest beyond that. SOUNDBITE: PEDRO PARENTE, CEO, PETROBRAS, (ENGLISH) SAYING: "We on average - the presalt wells are producing 26,000 barrels a day - a very, very nice number even in world standards. So the fact we have this very high productivity allows us to reduce the cost to develop and explore a field in the deep water." The company isn't ready just yet to settle class action suits in the U.S. A big bribery scandal has slammed its market value. Brazilian prosecutors accuse former Petrobras executives of accepting bribes to form construction and engineering companies. Some other Brazilian companies enmeshed the scandal have pleaded guilty. SOUNDBITE: PEDRO PARENTE, CEO, PETROBRAS, (ENGLISH) SAYING: "Petrobras was a victim. We had actually written agreement worked out, so it's not to say that the company would not be open to discuss agreements but needs to be really in an amount that considers the fact that we were victims." One party that could get a payout of a different kind: investors. He said Petrobras wants to start paying dividends again but needs a year of profits to do that. Last week, it posted a record quarterly operating profit.

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Petrobras eyes deep water oil

Thursday, May 18, 2017 - 01:47