Petrobras to slash spending, restore confidence

Rio de Janeiro

BRAZIL'S state-run oil company Petrobras has cut its long-term spending plan to the lowest level in eight years as new management moved to reduce the industry's largest debt burden and restore confidence after a devastating corruption scandal.

Petroleo Brasileiro SA, as the company is formally known, will invest US$130.3 billion in the 2015-2019 period, the company said in a statement on Monday. The capital expenditure plan is 41 per cent lower than the US$221 billion projected in its previous five-year plan, covering the 2014-2018 period.