Petrobras mulls closing offices in Argentina, Colombia & Uruguay amid divestment plan

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Petrobras mulls closing offices in Argentina, Colombia & Uruguay amid divestment plan

Later this week, Petrobras, the Rio de Janeiro-headquartered Brazilian state-backed multinational petroleum enterprise, said that the petrochemical giant had been brewing off an option to wind down its offices in Argentina, Colombia and Uruguay following its ongoing divestiture measures.

On top of that, Petróleo Brasileiro SA, simply dubbed as Petrobras, had been quoted saying in the statement that its latest move to shutter down offices in Argentina, Colombia and Uruguay had been aimed at expanding its commercial operations outside Brazil, while the company had pledged to focus more on its Rotterdam-headquarter for Europe, Houston-base for the United States alongside its Singapore headquarter for Asia.

Petrobras expects to save at least $13.5 million per year after winding up offices

Apart from that, the Brazilian state-backed petrochemical megalith having had an output capacity of 2.07 million of barrels of oil equivalent per day, roughly 2 per cent of the world’s entire crude oil production, had added in the statement that the company had been expecting to save up to $13.5 million per year from 2021, largely due to its latest move to wind up offices in a number of major LATAM economies.

In factuality, latest move from Petrobras which reported a revenue of $76.6 billion as of December 31, 2019, came forth as the Petrobras Chief Executive Roberto Castello Branco had shut down a slew of Petrobras international offices since the beginning of his term back in the January of 2019, accelerating an acrimonious but much-required measure to trim costs amid a pandemic outbreak which had forced the Brazilian petroleum industry behemoth to furlough more than 90 per cent of its staffs.

Even before the pandemic outbreak, the debt-laden oil industry mogul, which reported about $444.92 billion in total debts as of September 30 this year, had been closing down offices across the globe, while 10 of its 18 international operations ceased to exist by the end of 2018 including offices in China, Mexico, New York, Turkey and Iran.

Petrobras SA had also closed offices in Libya, Japan, Paraguay, Japan and Tanzania last year after selling assets in those countries.