Brazilian president Dilma Rousseff will reevaluate a $6bn plan to purchase 11 warships in a move to control increasing government expenses.

The decision is seen as a blow to potential bidders that include BAE, France’s DCNS, Germany’s ThyssenKrupp, Daewoo group and Fincatieri of Italy.

The warships would be used by the Brazilian navy to patrol and protect the nation’s offshore oil finds located in the Atlantic Ocean.

Rousseff is also reviewing a multi-billion dollar air force jet contract to buy at least 36 fighter jets, according to Reuters.

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