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Brazil's Petrobras to announce revised capex plan next week: CEO
[SAO PAULO] Brazil's state-run oil company Petróleo Brasileiro SA will announce a revision to its investment plan next week, chief executive officer Pedro Parente said on Friday.
Speaking as shares of subsidiary Petrobras Distribuidora SA debuted on the local stock exchange, Parente said the revision would be announced by next Wednesday or Thursday.
In the company's 2017-2021 plan, Petrobras, as the oil producer is known, projected capital spending of US$74.1 billion, a 25 per cent reduction from the prior five-year plan. Most of Petrobras' capex is earmarked for oil and gas exploration and production.
Regarding the initial public offering of Petrobras Distribuidora, which priced at the floor of a pre-determined range on Wednesday, Mr Parente said it would make the fuel distributor more efficient and independent from the parent company.
The IPO raised five billion reais (S$2.03 billion), with Petrobras selling almost 30 per cent in Petrobras Distribuidora as a result of the transaction.
Petrobras Distribuidora's common shares opened 2.7 per cent higher at 15.41 reais on Friday, but then pared gains and were virtually flat in late-morning trading.