Exclusive: Petrobras to cut five-year investment plan one-fifth to $80 billion – sources

2 Mar 2016   Brazil

Brazil’s Petrobras will slash its five-year investment plan by about one-fifth next month as low oil prices, massive debt and fallout from a corruption scandal hobble its ability to fund offshore projects, two sources helping draft the plan told Reuters. The state-led oil company’s capital spending program will fall to about $80 billion in the 2016-20 period, an average of about $16 billion a year, said the sources, who requested anonymity because the plan is not final. If approved, it would be the smallest five-year investment program for the company, formally known as Petroleo Brasileiro SA, since 2006 and mark the latest in a rapid succession of downward revisions. It would be roughly 20 percent smaller than the $98.4 billion plan announced in January, which was the third downward revision of Petrobras’ […]

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