Brazil’s Petrobras plans to slightly reduce its five-year investment plan, cutting capital expenditures by about 2% to around $109 billion. This adjustment reflects pressure from weaker crude prices, with Brent crude trading near $62 per barrel. The company aims to maintain financial stability without increasing debt or changing dividend policy.

Petrobras is focusing on expanding production and refining capacity through upgrades to existing platforms and refineries. The company achieved success with its Almirante Tamandaré floating production unit, setting a record of 270,000 barrels per day. Petrobras will renegotiate with suppliers and reassess projects to control costs.

President Lula faces the challenge of balancing energy expansion with lower global oil prices. The company’s $19.6 billion investments for 2026 are already committed, limiting flexibility for further cuts. The new plan signifies a pragmatic shift for Petrobras, expanding production while responding to a softer oil market.

Read more at Yahoo Finance: Petrobras Scales Back Five-Year Plan as Oil Prices Weigh on Spending