UPDATE 1-Petrobras delays cuts to July when govt meets for oil plan- sources

martes 16 de junio de 2015 16:54 GYT

(Adds date of planned Senate discussion, paragraphs 13-14)

By Jeb Blount and Rodrigo Viga Gaier

RIO DE JANEIRO, June 16 (Reuters) - Brazil's state-run oil company Petrobras will likely delay details of major cuts to its $221 billion five-year spending plan until July, two sources said, when the government plans to announce a rescue program 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 percent of the proposed spending, by the end of June.

However, executives at Petroleo Brasileiro SA, as Petrobras is formally known, have run into internal and political resistance to cuts given the major role the company plays in Brazil's economy, a top Petrobras executive with direct knowledge of company discussions told Reuters.

The government is only coming to terms with Petrobras' economic fragility and how government efforts to increase control over the country's natural resources could make Petrobras weaker still, the senior coalition member told Reuters.

Both officials requested anonymity because final details of the government's and Petrobras' plans have yet to be decided. Both have regular contact with Rousseff and other top government and Petrobras officials.

"The industry depends on Petrobras, and the government wants a coordinated response, but they also know they can't wait too long," the second source, a senior member of Brazilian President Dilma Rousseff's ruling coalition, said.