Petrobras unveils investments totaling $68 bi in next five years

Petrobras announced that, in the next five years, the company’s investments will reach $68 billion—up 24 percent from the same period in the previous plan. The decision was made Wednesday (Nov. 24) by the oil giant’s administration board, as it approved the Strategic Plan for 2022–2026.

“The company is keeping its stance consistent with projects with full potential to generate resources and contributions for Brazilian society,” said Petrobras President Joaquim Luna e Silva.

In oil and natural gas production and exploration, $57 billion will be invested between 2022 and 2026. In the period, 15 new platforms in six fields should become operational, with a change in the strategy for hiring units leased in some of the projects.

The company retained the previous plan of resilience in its exploration and production portfolio—with all projects being considered economically feasible with the oil barrel at $35 in the medium and long runs. The estimated oil and gas production for 2022 and 2026, in turn, stand at a daily 2.7 and 3.2 million barrels of oil equivalent, respectively.

The state-run company further announced a $2.8 billion investment for the reduction and mitigation of emissions—including investments in operational efficiency incorporated into projects for the mitigation of emissions (scopes 1 and 2), bioproducts (renewable diesel and aviation biokerosene), as well as research and development.

Refining

Petrobras is to invest $6.1 billion in the coming five years in refining. Laid out in the plan is the conclusion of the second unit of the Abreu e Lima Refinery, on the coast of Pernambuco state, with investments of $1 billion, enabling production to surge from 115 thousand to 160 thousand barrels of oil a day in 2027.

For trade and logistics, investment stands at $1.8 billion, and has been earmarked chiefly for continuity in operations, with a focus on a competitive environment and mandatory investments to be allocated on the Santos terminal, due to the recently held auction of the area.

The president of the company said that the plan increases the importance of a strong Petrobras, healthy and generating resources. “In 2021, more than $39.26 billion have been estimated including taxes and fees collected and dividends paid to the federal government and other federal entities. We’ll generate more and more resources not held in the company’s coffers, but returning to society as tax, dividends, and investment, with a multiplying effect in the generation of jobs and the growth of the Brazilian economy.”