Petrobras to invest US$ 102 billion in next 5 years; Focuses on energy transition

Petrobras to invest US$ 102 billion in next 5 years; Focuses on energy transition

New technologies are bringing more efficiency and will allow even more value generation for Petrobras

  • By ICN Bureau | February 04, 2024

Jean Paul Prates, President of Petrobras, participated on January 30 in the opening of “Deep Dive Petrobras”, a meeting held in New York to bring the company closer to international investors and increase transparency in the market. Prates highlighted that Petrobras, after years of focusing only on the present, is now looking to the future, seeking to strengthen itself and position itself in a balanced way in the energy transition process that the world is going through.

“We are an oil company in transition. We are gradually transforming Petrobras, investing in new energy, without giving up oil production from one moment to the next. Regardless of the segments in which we will operate, it is important to highlight that we will invest in profitable assets and in areas that have synergies with the activities that the company already develops, taking advantage of all the technical knowledge that Petrobras already has. We will not take any leaps in the dark, we are preparing Petrobras for the future in a responsible way," Prates pointed out to an audience of around 50 analysts and investors, especially from large investment funds from abroad.

During the event, investors had the opportunity to delve deeper into the main issues relating to the company, especially obtaining details of Petrobras' Strategic Plan 2024-2028+. The company will invest US$102 billion over the next five years. It is the biggest investment plan of a Brazilian company. Of this total investment, US$91 billion corresponds to projects under implementation (portfolio under implementation) and US$11 billion comprises projects under evaluation (portfolio under evaluation), subject to additional financeability studies before contracting and execution begin.

The company's Exploration and Production Director, Joelson Falcão Mendes, also presented at the event. The executive reiterated that global demand for oil should remain high in the coming decades and that projections by the International Energy Agency indicate that Brazil could be responsible for a significant part of this supply, around 5% of the world's oil volume in the future.

“Petrobras' E&P segment has good prospects in the coming years. Petrobras' total production curve will reach 3.2 million barrels of oil and gas equivalent per day in 2028. With the energy transition, the market should prioritize oil with a lower carbon footprint. Petrobras has a competitive advantage, as its oil is among the most decarbonized in the world,” said Joelson.

New technologies, such as the use of anti-corrosive materials, 3D industrial plants and digital twins are bringing more efficiency and will allow even more value generation for Petrobras. The executive also highlighted the importance of investments in exploration, which will total US$7.5 billion by 2028. In this context, there are investments in new exploratory frontiers, such as the Equatorial Margin, which should receive US$3.1 billion in exploration by 2028.

The company's significant project portfolio was presented by the Director of Engineering, Technology and Innovation, Carlos Travassos. Within the horizon of the 2024-2028+ Strategic Plan, the company will drill more than 350 offshore production development wells, lay more than 8,000 km of pipelines and put 14 FPSOs into operation, 10 of which are already contracted. Travassos pointed out that the oil and gas industry supply chain has faced challenges in recent years and that Petrobras is prepared for this scenario.

“Petrobras, proactively, has adopted a series of measures, seeking partnerships with the supplier market, efficiency and technological innovations, in order to mitigate the impacts of possible problems with the chain. The company is also carrying out intensive risk monitoring to ensure the predictability of its investments,” said Travassos.

The executive also presented Petrobras' research and development initiatives to investors. By 2028, the company will invest US$3.6 billion in the segment, with the aim that technological innovation, which is part of Petrobras' DNA, continues to drive the construction of the company's future. Travassos also pointed out that the Petrobras Research Development and Innovation Center (Cenpes), the largest in Latin America, has been working in an increasingly integrated manner with Petrobras' business areas.

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