03:00 PM EDT, 10/14/2024 (MT Newswires) -- Petrobras (PBR) is expected to lower its 2025 investment plans to around $17 billion, down from a previously forecasted $21 billion, Reuters reported Monday, citing sources familiar with the matter.

The Brazilian state-run oil company is scaling back spending despite government requests to boost capital expenditures, the report said, adding that the rising equipment costs and limited financing are driving the cuts along with delays in obtaining environmental licenses for exploration projects.

In the current 2024-2028 strategic plan, Petrobras plans to allocate $102 billion for investments, marking a 31% rise from its previous strategy. The company aims to develop a strategy that is more "realistic," according to the news outlet.

The 2025-2029 strategic plan, which is scheduled for release in November, is projected to have a lower capital expenditure than the current one.

The new plan aims to focus on initiatives that require less initial investment but promise greater returns and quicker outcomes. Additionally, it will outline strategies for expanding the number of oil and gas drilling sites, the report added, citing sources.

Petrobras did not immediately respond to MT Newswires' request for comment.

Petrobras shares were up more than 1% in recent trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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