(Petrobras, 14.Aug.2019) — Petrobras reports it has received the Official Letter No. 713/2019-SLS, which requests the following clarification:
Official Letter nº 713/2019-SLS
“Dear Gentlemen, In a news report published by the newspaper “Valor Econômico”, on 08/14/2019, under the headline “Petrobras’ CEO expects to invest US$ 100 billion in five years”, it is stated, among other information, that this company will invest about US$ 100 billion over the next 5 years. We ask for clarification on the highlighted item, by 9 AM on 08/15/2019, with your confirmation or otherwise, as well as other information deemed relevant.”
Clarification
Petrobras reaffirms the investments of US$ 84.1 billion foreseen in its 2019-2023 Business and Management Plan (PNG 2019-2023) and disclosed to the market on 12/05/2018. The amount mentioned in the news article was in response to several questions about the dismantling of Petrobras. The CEO denied the dismantling and explained the portfolio management, that we are divesting assets that we do not own naturally. The portfolio management helps to improve capital allocation, thereby increasing value generation. At the same time, they make it possible to reduce debt and the cost of capital. PNG’s investment amounts are approximate and may vary, eventually reaching US$ 100 billion, considering potential participation in oil and gas upstream auctions, including the surplus of the assignment for consideration scheduled for 11/06/2019. Additionally, the company annually reviews its Business and Management Plan, removing the year ended and adding another period. This process is underway and as soon as it is approved by all competent authorities of the company it will be widely disclosed to the market. In line with this perspective, Petrobras reinforces the commitment that its investments will focus on generating value for the Company, with broad capital discipline, based on the fact that project profitability is a top metric established in its PNG.
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