Off the wire
• UN Security Council strongly condemns deadly terrorist attack in Libya  • Leading goal scorers of French Ligue 1  • Peterhansel takes Dakar Rally lead  • French Ligue 1 standings  • Israel's new settlement expansion plan undermines two-state solution: U.S.  • Houston man facing terrorism charges appears in court  • Roundup: U.S. stocks keep falling despite upbeat jobs data  • Roundup: Canadian stock market ends flat despite rising jobs data from Canada, U.S.  • India's paramilitary kills 5 Naxals in Bihar gunfight  • Oil prices extend losses amid supply glut  
You are here: 　 Home

Brazil's state oil company Petrobras announces plan to shrink this year's investment

Xinhua, January 9, 2016 Adjust font size:

Brazilian state oil company Petrobras on Friday said it has planned to invest 19 billion U.S. dollars this year, which is below the company's original investment.

The company made its plan known in a communique sent to Brazil's Securities and Exchange Commission.

Petrobras stated the investment plan disclosed Friday was a reduced amount compared to what it originally intended to spend, due to the economic troubles it suffered last year.

Petrobras announced as early as April 2015 it was cutting its planned investments for 2015-2019 period by 20 percent to reach a total of nearly 177 billion U.S. dollars.

Petrobras has been undergoing a severe financial and institutional crisis since the revelations of a gigantic corruption ring centered around it. Businessmen, company executives and politicians have allegedly conspired to inflate the value of contracts and split the exceeding amount.

Petrobras has admitted that at least 2 billion U.S. dollars were embezzled by this ring between 2004 and 2014, which has provoked a fall in trust among foreign investors and caused the company's financing to dry up. This has led Petrobras to significantly slash its planned investments and begin a process of divestment to raise liquidity and pay down its vast debts. Enditem