Brazil's Petrobras and Odebrecht to reduce costs

The Associated Press

State-run oil company Petrobras said in a statement that it has approved a voluntary layoff program to reduce its workforce by about 12,000 and save 33 billion reals (about $9.20 billion) by 2020.

SAO PAULO (AP) — Two Brazilian companies ensnared in massive corruption investigation said Friday they plan to cut billions of dollars in costs or sell off assets.

State-run oil and gas company Petrobras said in a statement that it has approved a voluntary layoff program to reduce its workforce by about 12,000 and save 33 billion reals (about $9.20 billion) by 2020.

Petrobras has been at the center of the sprawling corruption scandal that has ensnared some of Brazil's most powerful lawmakers and business executives. Last month, the embattled company said it lost $10.2 billion, in the fourth quarter. That brought its full-year 2015 result to a $9.6 billion loss.

Meanwhile, in an interview published Friday by the Folha de S. Paulo newspaper, the head of the Odebrecht construction company said it has put assets up for sale to raise R$12 billion (US$ 3.3 billion).

Newton de Souza told the newspaper the company plans to sell a hydroelectric power plant and a road concession in Peru and a stake in a petroleum block in Angola.

Souza became president in 2015 after former chief executive Marcelo Odebrecht was arrested. In early March he was sentenced to 19 years in prison on charges of corruption and money laundering.

Odebrecht is the highest profile executive to be convicted in the so-called "Operation Car Wash" investigations and one of the central private sector figures in what prosecutors have called a criminal organization.

Prosecutors have said the overall scheme involved more than $2 billion in bribes paid to obtain Petrobras contracts, with some money making its way to political parties, including the governing Workers' Party.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs