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LatinNews Daily - 27 March 2020

In brief: Brazil’s Petrobras moves “to strengthen resilience”

* Brazil’s state-owned oil company Petrobras has announced a series of measures “to strengthen resilience” in the face of the coronavirus (Covid-19) pandemic’s impact on demand and falling international oil prices. The measures announced to reduce spending and guarantee liquidity include: a R$2.4bn (US$477.32m) cut in human resources expenses, notably through the postponement of payments of various bonuses, of overtime pay, and of 30% of the monthly salary of the top managerial and executive positions, including the CEO; a reduction of planned investments for 2020 from US$12bn to US$8.5bn; and the reduction of operating expenses by US$2bn, partly through the mothballing of platforms in operation in shallow water fields and the postponement of new material contracts for 90 days. Petrobras has also announced that it will cut production by 100,000 barrels of oil per day to the end of March. The company’s CEO, Roberto Castello Branco, said that the oil industry is “maybe” facing its worst crisis in a century.    

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