SAO PAULO, Brazil – Petrobras has cut $11 billion from capital spending plans for this year and next, Reuters reported.
The company plans to cut 2015 investment by 11% to $25 billion from the previous $28 billion, according to a statement. Investment for 2016 will be cut 30% to $19 billion from $27 billion. Budgeted costs plus operating expenses excluding purchases of raw materials were also trimmed for this year and next.
This latest round of cuts is the second in three months. Last month, Reuters reported that Petrobras could be forced to make new cuts to its five-year plan as the price of oil fell, rising interest payments, and a weak currency made the program obsolete.
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