RIO DE JANEIRO (Reuters) - Brazil’s state oil firm Petrobras is evaluating a short-term adjustment to its five-year business plan, as it confronts rock bottom oil prices and the global coronavirus outbreak, according to a source with direct knowledge of the matter.
“We’re looking at the need to adjust the plan in the short-term, but in the medium-term, we think the situation will normalize,” said the source, who requested anonymity to disclose private discussions.
Petroleo Brasileiro SA, as the firm is formally known, did not immediately respond to a request for comment.
The source added that Brent crude could recover by the end of the year to around $50-60 per barrel.
The current Petrobras business plan calls for $20 billion to $30 billion of divestments from 2020 through 2024, with most of those sales coming in 2020 and 2021.
Reporting by Rodrigo Viga Gaier; Writing by Gram Slattery; Editing by Brad Haynes and Tom Brown