Petrobras Cuts Capex Plan on Lower Oil Prices

Core Viewpoint - Petrobras has revised its spending plans for the next five years due to a steady decline in oil prices, planning to spend 2% less than previously expected from 2026 to 2030 [1] Group 1: Spending Plans - Petrobras will allocate $109 billion for capital spending over the five years to 2030, with an expected average Brent crude price of $63 per barrel, down from $77 per barrel in the previous plan [3] - The company has increased its budget for exploration and production by $1 billion compared to the previous version of its spending plan, now budgeting $78 billion for upstream activities [4] Group 2: Dividend Payments - Ordinary dividends for the five-year period to 2030 are now projected to be between $45 billion and $50 billion, reduced from a maximum of $55 billion previously expected [2] - The update did not provide an estimate for extraordinary dividends, which were previously mentioned to be up to $10 billion [2] Group 3: Historical Context - Earlier this year, Petrobras had planned to spend $111 billion from 2025 to 2029, with $77 billion earmarked for oil and gas exploration and production activities [5] - This earlier spending figure was $10 billion higher than a previous version of the investment plan, which allocated $73 billion for exploration and production [6]