As of today (April 1), Petrobras is adopting the new measures necessary to ensure the company's sustainability in what is the worst crisis in the oil industry in the last 4 years. The oil crisis and pandemic recently made the state-owned company hibernate platforms, reduce investments and take other emergency measures

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The current scenario is marked by an unprecedented combination of an abrupt drop in oil prices, oversupply in the market and a strong contraction in global demand for oil and fuels.

These new measures involve reducing oil production, postponing cash disbursements and reducing costs. As of today, oil production will be cut by 200.000 barrels per day, a volume that includes the reduction announced on 26/03/2020.

To define the fields that will have their production reduced, Petrobras will take into account market and operational conditions. The duration of the restriction, as well as potential increases or decreases, will be continuously evaluated.

The company is adjusting the processing of its refineries, in line with the demand for fuels.

As part of actions aimed at promoting the announced cut of US$ 2 billion in operating expenses in 2020, decisions were taken to save approximately R$ 700 million in personnel expenses:

• Postponement of payment, between 10% and 30%, of the monthly remuneration of other employees with a paid function (managers, coordinators, consultants and supervisors);
• Temporary change from shift and on-call regimes to administrative regime for around 3,2 thousand employees;
• Temporary reduction of the working day, from 8 hours to 6 hours, for around 21 employees.

A transpetro, a wholly owned subsidiary of Petrobras, also approved a resilience plan, which consists of measures to reduce the cost structure, both in operating expenses and in investments, postponing or optimizing disbursements, in the amount of R$ 507 million in 2020.

Petrobras Commitment

Petrobras reinforces its commitment to managing its portfolio and its strategy based on five pillars: maximizing the return on capital, reducing the cost of capital, relentlessly seeking low costs, meritocracy and respect for people, the environment and safety. The current crisis highlights the importance of these pillars that must continue to be implemented with even more focus and intensity.

The company continues to monitor the market and, if necessary, will make new adjustments, always ensuring safety conditions for people, operations and processes.