Brazil’s state-run oil company Petrobras has revised its five-year business strategy, lowering both its dividend projections and investment plans as it faces the impact of declining oil prices.

For the period from 2026 to 2030, Petrobras expects to distribute $45 billion to $50 billion in regular dividends. This is a reduction from the earlier estimate in its 2022-2026 plan, which had forecast up to $55 billion for shareholder payouts.

The revised plan does not include any mention of extraordinary dividends, which had been expected to reach up to $10 billion during the 2025-2029 period in the previous forecast.

Investment plans were also scaled back, with the total expected spending now reduced to $109 billion, representing a near 2% cut. The adjustment comes in response to falling Brent oil prices, which Petrobras now predicts will average $63 per barrel in 2026, down from the previously expected $77 per barrel.

This marks the first reduction in investments since President Luiz Inacio Lula da Silva assumed office, signaling a change from the investment cuts seen under the administration of former President Jair Bolsonaro, during which Petrobras was undertaking significant asset divestitures.

Despite the overall reduction, investments in exploration and production were raised by $1 billion, totaling $78 billion for the period. The company has maintained its commitment to refining, transportation, and marketing investments at around $20 billion.

Petrobras also forecasted a peak in oil production, which it expects to reach 2.7 million barrels per day (bpd) by 2028. Total oil and gas equivalent production is expected to hit 3.4 million boed per day in both 2028 and 2029, with a margin of variation of plus or minus 4%.