March 17, 2020 / 9:37 PM / 22 days ago

Brazil's Petrobras may adjust five-year business plan: source

FILE PHOTO: A logo of Brazil's state-run Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes

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

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