Sources say that Brazil's Petrobras will reduce its investments for 2025.

Three sources said that Brazil's Petrobras will reduce its planned investments next year despite the government's request for the state-run company to increase CAPEX.

Initial estimates from the firm suggest that spending may be reduced to $17 billion.

Petrobras didn't immediately respond to an inquiry for comment.

Petrobras' current strategic plan for 2024-2028 includes investments of $102 billion. This is a 31% rise over the previous plan. The increase comes amid pressures from Brazil's president Luiz Inacio Lula Da Silva to invest more to boost the economy and create jobs locally.

Petrobras is looking to release a more "realistic" plan, according to a source. Sources have not said whether the plan 2025-2029, which is set to be revealed in November, will have lower CAPEX.

Sources said that the 2025-2029 Plan will prioritise projects with lower investments and higher returns. The sources said that the plan would include plans for opening more oil and natural gas wells.

A source said that the main concern was to increase oil production and boost the company's earnings, as well as "helping the nation."

Sources cited a rise in equipment costs and financial limitations as reasons for lowering investments next year.

Sources noted that the firm also had difficulty expanding its activities in Brazil because of a lack environmental licenses for projects. Reporting by Rodrigo Viga Gaier, Rio de Janeiro; writing by Fabio Téixeira, and editing by Chris Reese.

(source: Reuters)