Brazil’s Petrobras Slashes Investment Budget for Second Time

Paul Kiernan, Rogerio Jelmayer – The Wall Street Journal, 01/12/2016

Brazilian state-run oil company Petróleo Brasileiro SA, or Petrobras, trimmed its production targets and drastically cut its investment budget for the coming years after its sanguine projections for oil prices and exchange rates didn’t pan out and as it struggles to sell assets.

Petrobras said Tuesday it will invest $98.4 billion in the 2015-19 period, down from a June projection of $130.3 billion. The company reduced its targets for oil production in Brazil by 40,000 barrels a day in 2016 and 100,000 barrels a day in 2020.

The latest figures mark the second time Petrobras has had to revise its 2015-19 business plan. The company tweaked its spending outlook in October after oil prices and the real promptly fell below its original projections.

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