Petrobras clarifies, “there is a difference between hibernation of an asset and temporary interruption of production. Hibernation does not predict return of production in the short term

Petrobras issued a note on the afternoon of this day (26) regarding the information published in the press that the company would be resuming activities in onshore fields that had been hibernated. Petrobras wants to sell all of its stake in Braskem by next year

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Petrobras clarifies that there was no decision to hibernate onshore fields. In this way, the information that Petrobras' board of directors "returned and suspended" the hibernation of such fields is false. There is no going back on a decision that was not originally taken, Petrobras said in a statement.

The state-owned company informed that the hibernation decision, announced to the market on 26/3, covers only 62 fields platforms in shallow waters, in the Campos, Sergipe, Potiguar and Ceará basins.

These units do not have the economic conditions to operate with low oil prices. The company also points out that 80 percent of these platforms are not inhabited and that no Petrobras worker has been fired due to hibernation. All employees were reallocated to other areas of the company.

The state-owned company currently operates 168 onshore fields, where in the first quarter of this year production totaled 114 barrels of oil per day, of which 14 fields had production temporarily suspended to ensure the safety of workers in the face of the pandemic and also because of low prices. oil.

However, the company claims that this is not hibernation. The paralyzed production corresponds to around 200 barrels per day of Petrobras' oil production, that is, 0,01% of the company's total production.

Petrobras clarifies, “there is a difference between hibernation of an asset and temporary interruption of production. Hibernation does not provide for a return to production in the short term and, therefore, requires a series of equipment conditioning procedures so that the unit remains safely stopped for a long period of time”.

“The procedures for temporary interruption leave the unit prepared for a more immediate return to production, if that is feasible. In both cases, production is interrupted and maintenance and conservation activities are maintained, in order to maintain the safety and integrity of the installations”, concludes Petrobras.

Petrobras continues to permanently evaluate the economic results of its assets, which have to prove profitable in the face of a new scenario of low oil prices.

It is these economic results that determine the decision to interrupt production in the fields, and therefore, there may be additional interruptions, if necessary.

The company's cash protection measures adopted so far seek to preserve the company's sustainability in what is the worst oil industry crisis in a hundred years. Petrobras' actions are in line with what the entire global oil industry is doing to overcome the impacts of this crisis.