MOSCOW (MRC) -- Petroleo Brasileiro SA will cut its 2016-2020 investment plan by 5% to USD93 billion as the state-run oil company contends with dwindling oil prices and a massive corruption investigation, said Reuters.
The embattled Brazilian company, known as Petrobras, could reduce its investments even further if 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 emailed request for comment.
The company, which has a USD130 billion debt pile, has already cut its investment plans to USD98.4 billion from USD130.3 billion and last month had its Moody's credit rating reduced to non-investment grade.
The potential for a boost from big oil discoveries off the coast of Brazil appear to have faded, meanwhile, with the company's announcement of on Friday of a 20 percent cut to its oil and gas reserves.
As MRC informed earlier, Petroleo Brasileiro SA agreed to sign a naphtha supply contract with Braskem SA, Latin America's largest petrochemical producer, for five years. Under terms of the deal, which was announced in a securities filing, Braskem will pay the equivalent of 102.1% of the benchmark ARA price for naphtha, a petrochemical feedstock.
Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
MRC