* Output to rise 10 pct in 2019 from 2.1 mln bpd in 2018
* Rising oil revenue helps Petrobras cut net debt to $69 bln
* Petrobras targets 1.5x debt to EBITDA ratio in 2020
* May invest in LNG import terminals after hitting debttargets
By Devika Krishna Kumar and Simon Webb
NEW YORK, Sept 17 (Reuters) - Brazil's state-run oil giantPetróleo Brasileiro SA aims to raise output as muchas 10 percent to around 2.3 million barrels per day (bpd) in2019 and cut net debt by $10 billion, Chief Financial OfficerRafael Grisolia told Reuters.
The world's most indebted oil company is on course to reducedebt to $69 billion by the end of this year despite fallingshort of its $21 billion asset sales target, Grisolia toldReuters in an interview in New York late Friday.
The firm has significantly reduced its net debt from the$106 billion it had accumulated in 2014 to finance developmentof massive deepwater Atlantic oil fields. Then, Petrobras lostinvestor confidence as oil prices fell, a corruption scandalengulfed the company and losses from government fuel subsidiesmounted.
Petrobras aims to cut net debt by a further $10 billion in2019 to reach a ratio of 2 times net debt-to-EBITDA, he said.The firm will continue cutting debt until the ratio hits 1-1.5times, he said, which would put it in line with global oilmajors.
"If you look at our direct competitors and peers likeChevron, Exxon and BP, we need to look for a more light capitalstructure," Grisolia said.
The firm should reach a ratio of 1.5 in 2020 as part of itsnext five-year business plan, he said, although that woulddepend on international oil prices and other variables such asforeign exchange rates.
Over the next 5-6 years, once the firm had achieved debtrestructuring targets, Petrobras may consider foreigninvestments to facilitate exports of rising output from thedevelopment of the prolific deepwater pre-salt fields, he said.
The firm may invest in terminals abroad to receive liquefiednatural gas (LNG), he said. That would help Brazil export moregas, he added.
Exxon Mobil, BP and Royal Dutch Shellare among firms that plan to invest billions of dollarsin developing deepwater Brazilian energy reserves in comingyears. Brazil is expected to account for a large share of therise in global oil and gas output from non-OPEC countries.
OIL PRICES HELP
Oil production is expected to rise by about 8-10 percentnext year from about 2.1 million barrels per day (bpd) in 2018,Grisolia said. That should contribute to increased revenue, headded.
Crude prices rallied to three-and-a-half yearhighs this summer as global supplies tightened, leading tohigher fuel prices.
Higher oil prices than the company estimated in its 2018budget have raised revenue and allowed Petrobras to hit its debtreduction target, he said. That compensated for the $7 billionfrom asset sales that Petrobras expected to receive this year,he added.
The company has already received $5 billion from sales andwill receiving another $2 billion before the end of the year, hesaid.
"All the divestment and cash from divestment will help, butwe don't necessarily need them to achieve the target of $69billion by the end of the year," he said.
FUEL SUBSIDIES
Earlier this year, a nationwide truckers' protest overrising diesel prices paralyzed Latin America's largest economyand forced the government to lower diesel prices through taxcuts and subsidies.
That hurt Petrobras' share price as investors worried thefirm would again lose cash to subsidize fuel sales.
The firm expected to receive 2 billion reais to 2.5 billionreais from the country's oil regulator within two weeks tocompensate for subsidies, Grisolia said.
Subsidies have made it less profitable for the privatesector to import diesel, he said, but some imports continued andhe did not foresee any fuel shortages.
"Although the volume of imports to Brazil is lower, they arenot zero, they are happening." he added. "We do recognize thatmargins are tighter."
Petrobras is running refineries close to maximum capacityand importing some fuel, he said.
Petrobras has a gasoline hedge in place to cushion theimpact of fuel price volatility and is considering a dieselhedge. The cost of the hedge was marginal, Grisolia said.
Banks that Petrobras typically works with for currencyoperations were executing the fuel hedge, he said, such asGoldman Sachs, Bank of America, Bank of Brazil and Citibank.
Petrobras has hosted meetings with economic advisors topresidential candidates ahead of wide-open elections next month.Grisolia said talks had been positive, but declined to say whichteams he had met or comment on their strategies.
Candidates have different plans for the company and the roleof the private sector in energy, bringing some uncertainty toinvestors.
(Reporting by Devika Krishna Kumar and Simon Webb in New YorkEditing by Nick Zieminski)