Petrobras, Brazil's state-controlled oil giant, said it is considering selling debt denominated in euros and British pounds as part of its plan to finance its recently announced $224.7 billion five-year exploration budget, which is easily the largest of any of the world's major oil companies.
Earlier this year, Petrobras (PBR) said it was targeting non-dollar denominated bond sales following a $6 billion bond sale in January. Last month, Petrobras said that it will issue as much as $91 billion in debt and sell up to $13.6 billion of assets as part of spending plans for 2011 through 2015, according to Bloomberg News.
The company also recently said that by 2020 it expects it will not need to sell any more debt as cash flow from operations increases along with production. Petrobras is expecting the rise in cash flow will be enough to cover expenses and finance outstanding debt obligations.
The company is looking to boost daily output to over 6 million barrels by 2020 as it taps into Brazil's pre-salt oilfields such as Lula and Franco. By some estimates, Brazil's pre-salt fields may hold up to 50 billion barrels of reserves or more, enough to make the country one of the largest non-OPEC producers in the world.