Petrobras cuts investment by USD 32 billion

SãO PAULO, January 13, 2016 – Petrobras will cut its five-year investment plan by USD 32 billion, Brazil’s semi-public multinational energy firm announced on Tuesday.

The company intends to invest USD 98.4 billion between 2015 and 2019, a 25% decrease from its planned USD 130.3 billion. It will also cut capital spending and slow its oil production from 2.19 million to 2.15 million bopd this year.

The decision comes during the continued fall-out of Petrobras’ bribery scandal in 2014, in which at least USD 3 billion was stolen from the firm and key members of government, including the president, were implicated. The development contributed to the company’s USD 104 billion of debt, forcing it to put assets on sale.

“Petrobras has been working continuously to fine-tune its business plan and adapt it rapidly to the changes in the business environment,” the company said in a statement.

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