Brazil’s heavily indebted state-run oil company Petrobras released details of its new long-term capital budget on Tuesday, investments and upping the ante on sale of assets. The company will invest $74.1 billion in the period 2017-2021, down 25% from its 2015-2019 capital budget. It will seek to sell $19.5 billion in assets in the period 2017 to 2018, up from $15.1 billion for the period 2015 to 2016. The company said the purpose of asset sales was to reduce debt. Petrobras is the most heavily indebted oil company in the world. The company will also return to its traditional mission as Brazil’s major oil and gas developer. More than 80% of investments will be targeted on domestic oil and gas development. The company expects to hit daily production of 3.41 million barrels per day of oil in 2021, up sharply from its previous goal of 2.7 million by 2019. The company said it will be seeking strategic partners in oil and gas development.
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