Petrobas looking to cut operating costs by 32B reais from 2013-2016 as company ramps up offshore crude reserve investments; company's short- and long-term debt totals US$92B, more than any publicly traded oil company, Bloomberg data shows

NEW YORK , December 19, 2012 () – Petroleo Brasileiro SA, the world’s most indebted publicly traded oil company, plans to cut operating costs by 32 billion reais ($15.4 billion) between 2013 and 2016 as it ramps up offshore crude reserve investments.

Lowering fuel consumption at offshore production platforms and reducing chemicals consumption at refineries are among measures to be put in place, the Rio de Janeiro-based producer said today in a regulatory filing.

Petrobras will seek to “increase the productivity of the company’s operational processes,” it said in the filing.

Petrobras’s short and long-term debt totals $92 billion, more than any other publicly traded oil company, according to Bloomberg data. The company plans to invest $236 billion between 2012 and 2016, with the majority earmarked for exploration and production as it seeks to develop the largest offshore oil discoveries in the Americas since 1976.

Since becoming chief executive officer in February, Maria das Gracas Silva Foster required company divisions to make financial revisions, unveiled a $14.8 billion divestment plan and created a program to increase production efficiency at the offshore Campos Basin -- the company’s main basin.

Petrobras rose 2.7 percent to 20.72 reais at 1:34 p.m. in Sao Paulo. Earlier it gained as much as 3 percent, the biggest intraday price since Nov. 12.



--Editors: Robin Saponar, Jasmina Kelemen

To contact the reporter on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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