this is a oil thread. Gabrielli: When we announced our strategic plan, we presented the market with two price curves. One price curve involved oil prices of $37 per barrel in 2009, $40 in 2010, and $45 from 2011 in perpetuity. If the prices were at these levels, we would need $30 billion to finance two years of our $174.4 billion strategic plan for the next five years. This means that we announced that we would be financed by $30 billion on top of our cash flow from operations to finance our investment for 2009 and 2010.
But we also said that if the price of oil would be, on average, above $65 per barrel, with the same $30 billion we would finance five years of our plan. We would be fully financed if we get $30 billion in 2009 and 2010. We said that on January 23, 2009. From January to May, we raised $31 billion—$12.5 billion from the Brazilian Development Bank, $10 billion from the Chinese Development Bank, $6.5 billion from syndicated banks of different international banks, and $2 billion from the U.S. Ex-Im Bank. That means we are fully financed for the $174.4 billion right now if the price stays around $65 per barrel. |
