Petroleo Brasileiro SA will cut its 2016-2020 investment plan by 5 percent to $93 billion as the state-run oil company contends with dwindling oil prices and a massive corruption investigation, the O Globo newspaper reported Sunday. The embattled Brazilian company, aka Petrobras, could reduce its investments even further in the event a series of planned debt-reducing asset sales are completed, the paper reported without citing sources.
The press office of Petrobras did not respond immediately to an email request for comment.
With a $130 billion debt pile, the company had already cut its investment plan to $98.4 billion from $130.3 billion. Last month, its Moody’s credit rating was reduced to noninvestment grade.
The potential for a boost from big oil discoveries off the coast of Brazil appear to have faded, with the firm’s announcement Friday of a 20 percent cut in its oil and gas reserves.