Brazilian state-owned oil company Petrobras has announced a 24% reduction in its 2015-2019 investment plans compared to June 2015. The company plans to invest US$98.4bn until 2019, down from US$130.3bn (and from US$200bn on average in previous five-year budgets), following a cut in its oil production target by 40,000 bbl/d in 2016 and by 100,000 bbl/d in 2020.
In 2015, Petrobras invested US$23bn (forecast of US$25bn) and the company should invest US$20bn in 2016 (up from an October 2015 forecast of US$19bn).
Meanwhile, the environmental protection agency of Pernambouc has allowed Petrobras to boost crude oil processing at its Abreu e Lima (or "RNEST") refinery in Suape (Pernambouc). In early November 2014, the 115,000 bbl/d refinery was allowed to start operations with a limited output of 45,000 bbl/d or 39% of its capacity (later raised to 64% or 73,600 bbl/d). Petrobras will now be allowed to operate the refinery at 87% of its capacity, i.e. 100,000 bbl/d, without implementing pollution control systems. The US$20bn RNEST refinery is one of the most expensive refineries ever built, and only half of its 230,000 bbl/d capacity has been commissioned, as the project was hit by a giant bribery scandal and massive delays.