Petrobras lowers capex budget

Brazilian company re-evaluates spending strategy while focusing on divestment

Petrobras, the Brazilian state-owned oil company, has revised down its capital expenditure budget for the year. The firm will now allocate only $10-11bn in capex across 2019, downgrading from $16bn. Petrobras invested $4.9bn over the first two quarters of the year, with 83pc assigned to its exploration and production business. The firm's CFO Andrea Almeida said several factors had a role in the reduction. The joint development of reservoirs across licence or contract areas—field unitisation—has led to savings of around $1bn. Postponements of investments, including drilling completion, interconnections of gas lines and scheduled stops in refineries and platforms, further reduced outlay by $1.