Petrobras gets hold of additional source of funds with $5 billion credit line

Brazilian oil and gas giant Petrobras has signed a revolving credit facility in the amount of $5 billion, maturing in December 2026, with the possibility of being extended in up to two years.

Petrobras said on Thursday that the agreement was signed with 16 banks. It allows the company to draw on the line until the month before maturity and will be used to replace the $4.35 billion revolving credit facility contracted in 2018, which was due to mature in March 2023 and was cancelled on the current date.

The transaction creates an additional alternative source of funds for the company to use according to its needs. As a result, Petrobras will be able to use its cash more efficiently, maintaining access to liquidity without incurring load costs.

The operation is in line with the company’s liability management strategy, aiming at improving the debt amortisation profile and reducing costs, considering the gross debt target foreseen in its 2022-2026 Strategic Plan.

In recent company-related news, Petrobras has so far hired three Seadrill-owned drillships for operations on the Búzios field offshore Brazil.

The company in November awarded two contracts worth $549 million for the West Carina and West Tellus rigs. Then, earlier in December, another contract was awarded to Seadrill, this time for the West Jupiter drillship. The value of the second contract is $264 million.