Petrobras Proposes a 37% Cut to Investments

06/29/2015 - 08h53

In an effort to send a message of austerity to the financial market, the board of directors at Petrobras approached the administrative council with a proposal to cut investments by approximately 37% in the 2015-2019 business plan.

The Brazilian government has been notified of the results of the meeting and hopes that the new investment figure -a more realistic one- will relieve the company's cash flow pressure.

Folha has learnt that the council requested some specific adjustments to the plan, but indicated that they would approve the new account on this platform.

Compared to the previous business plan for 2014-2018-which reached US$220.6 billion-, the decline in investments should be close to US$ 90 billion, as Folha has learnt.

This year alone, state investments will decrease by approximately 30%.

The idea of Petrobras directors is to develop a more streamlined business plan to tackle the falling price of oil in the international market and the financial challenges posed by a corruption scandal.

Translated by SUGHEY RAMIREZ

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