Petrobras likely to delay details of spending cut

Struggling: A price-fixing, bribery and corruption scandal has forced Petrobras to stop payment to leading suppliers, leading to bankruptcy filings by major contractors and widespread layoffs. — AP

RIO DE JANEIRO: Brazil’s state-run oil company Petrobras will likely delay details of major cuts to its US$221bil five-year spending plan until July, two sources said, when the government plans to announce a rescue programme for the industry.

Petrobras, which is struggling with a corruption scandal, falling oil prices, stagnant output, and the largest debt of any oil company, had planned to announce deep spending cuts, expected to be about 30% of the proposed spending, by the end of June.