March 21, 2016 |
Petrobras is tasked with an unprecedented transformation, shaped by austerity and largely dependent on a divestment program that comes amid a pervasive corruption investigation and a torrid time for Brazil’s economy and global energy markets.
The company is saddled with $24 billion in debt maturing in 2016 and 2017, $6 billion of which is due to bondholders this year. While it has announced intentions to divest up to $15.1 billion of assets by the end of 2016, and a further $42.6 billion in divestments by the end of 2018, these goals seem ambitious given Petrobras’ track record last year, when it unloaded $700 million of assets. The largest sale, Mitsui’s roughly $463 million purchase of a s
Petrobras is looking to offload assets as it faces billions of dollars in maturities over the next two years. But significant domestic and international headwinds are calling its plan—and its future—into question