Brazil’s state-controlled oil company Petrobras slashed its long-term spending plan by 37 percent, The Wall Street Journal reported.

The company – which is Brazil’s “single biggest source of investment”, the newspaper said – announced on Monday it would invest US$130.3 billion between 2015 and 2019.

In a statement, the oil company also said it was cutting its domestic production forecast to 2.8 million barrels of oil per day by 2020, from a previous target of 4.2 million barrels, the newspaper added.

“All the majors [large oil companies] are [cutting] because oil prices are down,” Brazilian Finance Minister Joaquim Levy told The Wall Street Journal in New York.

“That’s how it should be done. The price is down; you factor that into your core business”, the Minister added.

Petrobras’ previous five-year plan (2014-2018) included projects worth US$206.8 billion, according to the newspaper. The outlet added the cutback “has huge implications for Brazil’s economy, which is already forecast to contract by more than 1 percent this year”.

The report further stated that, in 2014, Petrobras’ sales accounted for around 6 percent of Brazil’s gross domestic product. The newspaper also reported that the firm’s total debt reached a high of US$132 billion at the end of last year.