(Corrects to say cuts in reais not dollars)
RIO DE JANEIRO Oct 19 Brazil state-led oil
company Petrobras plans to cut between 5 billion
reais ($2.5 billion) and 15 billion reais ($7.43 billion) from
its operational costs in 2013, Brazilian newspaper O Globo
reported on Friday.
The cuts are part of Petrobras' "Procop" cost-optimization
program and were announced in an internal company presentation
on Thursday by Chief Executive Maria das Graças Foster, the
Petrobras' press office did not immediately return requests
The plan is aimed at helping Foster find ways to revive
stagnant production and boost cash flow to pay for a $237
billion five-year expansion plan, the world's largest corporate
Despite huge spending levels and the discovery of some of the
world's largest offshore oil fields in the past five years,
Petrobras has missed all its annual production targets for a
decade, and August oil and natural gas output fell to a 22-month
For the second quarter, Petrobras posted a 1.35 billion real
loss, its first in 13 years.
Procop is focused on areas that accounted for 63 billion
reais ($31 billion) of spending in 2011, the "manageable
portion" of the company's 199 billion reais of outlays
registered in Petrobras' 2011 accounts as cost of goods sold
and operational expenses, the company said in a statement on
The statement said the company had identified 28 areas where
costs and "optimizations" could be made, but did not say how
much it planned to save with its program.
($1 = $2.02 Brazilian reais)
(Reporting by Jeb Blount; Editing by Lisa Von Ahn and Gerald E.