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Brazil’s Petrobras slashes investment amid kickback probe

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FILE - In this Feb. 4, 2015 file photo, workers whose company is contracted by Brazil\'s state oil company Petrobras throw their work uniforms at the company\'s building headquarters to protest corruption, in Rio de Janeiro, Brazil. Petrobras is further slashing its investment plans by one fourth less than a year after similar cuts as oil prices fall and a corruption probe widens. (AP Photo/Silvia Izquierdo, File)

RIO DE JANEIRO – Brazil’s state-run oil company announced on Tuesday that it is further slashing investment plans by one-fourth less than a year after similar cuts as oil prices fall and a corruption probe widens.

A Petrobras statement said the company will invest $74.1 billion between 2017 and 2021, a 25 per cent drop from the $98.4 billion previously projected for the 2015-2019 period. It will also sell $19.5 billion worth of assets in the next two years after selling $15.1 billion in the last two.

The company says it aims to produce 2.77 million barrels a day in 2021.

These 5-year projections have repeatedly plunged from $220.6 billion announced in 2014.

Prosecutors have implicated numerous business executives and politicians in a sweeping kickback scheme centred on Petrobras. Petrobras CEO Pedro Parente has said he will root out corruption.

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