Brazil's state-run oil company Petroleo Brasileiro SA may reconsider its dividend policy, Chief Executive Officer Roberto Castello Branco told Brazilian newspaper Valor on Wednesday.

In an interview with the paper, Castello Branco said he may cancel quarterly dividends payments, to accelerate the reduction of Petrobras' debt levels.

The Petrobras CEO also said the company expects capital expenditures of $16 billion this year, 23 percent higher than expenditures last year. Petrobras press representatives did not reply to a request for comment on the interview.

(Reporting by Tatiana Bautzer; editing by Chris Reese)