Brazil’s Petrobras will cut its five-year investment plan by about a fifth next month as low oil prices, massive debt and the fallout from a corruption scandal bite into the state-led oil company’s ability to fund offshore projects, two sources helping draft the plan told Reuters.
The capital spending program will fall to about $80 billion in the 2016-2020 period, an average of about $16 billion a year, said the sources, who requested anonymity because the plan has not received final approval.
If approved, it would be the smallest Petrobras five-year investment program since 2006 and would 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, itself the third downward revision of Petrobras’ $130 billion, 2015-2019 plan unveiled in June.
(Reporting by Jeb Blount and Rodrigo Viga; Editing by Daniel Flynn)
Brazil Energy Insight 
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