Petrobras Needs to Raise $32B By 2014 For Business Plan - Estado

RIO DE JANEIRO (Dow Jones Newswires), Nov. 9, 2010

Petrobras will need to raise $32 billion by 2014 to complete its 2010-2014 business plan, local Estado news agency said, citing Chief Executive Officer Jose Sergio Gabrielli.

Petrobras currently has $38 billion in debt and is investing $224 billion in the 2010-2014 period, Estado said, citing Gabrielli. The company expects to generate cash of $155 billion during this period, after dividend payments, if international oil prices stay around $80 a barrel, Estado said.

Petrobras had recently said it might have to borrow as much as $60 billion over the next five years.

In September Petrobras raised around $67 billion in a sale of new shares designed to help finance the company's current expansion plan, which should allow it double production by 2014, including from Brazilian presalt offshore oil deposits.

Gabrielli said Petrobras will fall slightly under its 2010 oil production target of 2.1 million barrels a day from its Brazilian fields due to maintenance work at rigs, Estado reported.

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