Petrobras to Cut Output by Another 100,000 Barrels/Day Amid Drop in Demand
April 01 2020 - 12:03PM
Dow Jones News
By Jeffrey T. Lewis
SAO PAULO--Brazilian oil producer Petroleo Brasileiro SA, or
Petrobras, said Wednesday it will reduce output by another 100,000
barrels per day amid a drop in demand, bringing the total cut to
production to 200,000 barrels per day.
The Rio de Janeiro-based company, which last week announced a
production cut of 100,000 barrels per day, said the duration of the
reduction, along with potential increases or decreases, will be
evaluated regularly.
Petrobras is also adjusting production at its refineries and is
taking a series of measures to cut personnel costs by an additional
700 million reais ($134 million). From 10% to 30% of salary
payments to some managers will be postponed, and the workday of
around 21,000 employees will be cut to six hours from eight hours,
the company said.
Petrobras produced a record 3.025 million barrels of oil
equivalent per day in the fourth quarter and had a production
target for this year of 2.7 million barrels of oil equivalent per
day, with a variation of 2.5% in either direction depending on
market conditions.
Social distancing and quarantine measures around the world have
slashed demand for fuels. Last week Goldman Sachs estimated that
demand for oil will fall by 18.7 million barrels per day in
April.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
April 01, 2020 11:48 ET (15:48 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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