Petrobras is expected to invest $84.1 billion in the next five years, from 2019 to 2023. The new business plan was approved by the oil giant’s board and submitted to the firm’s securities commission, Petrobras announced Wednesday (Dec. 5).
The investments unveiled surpass the $74.4 billion from the previous plan. Petrobras also disclosed its strategic plan for 2040, which brings its new vision, more in line with society’s needs and present-day habits, in a bid to strive for a greater diversity of energy sources and use.
The focus on oil and gas, seen in the firm’s previous plan and still important in coming years, will make room for other sources of energy by 2040. The strategies to be adopted by the company have been adjusted, taking into account the transition into a low-carbon economy.
As part of the new plan, Petrobras will earmark $68 billion for exploration and production sector; $8.2 billion for refinement, transport and trade; $5 billion for gas and energy; and $300 million for the petrochemical sector.
The company will also seek partnerships in renewable electric energy as the new propeller for value generation, with a focus on the firm’s sustainable future.
The forecasts in the 2019–2023 business plan indicate that the company expects a ten percent growth in oil production in Brazil and a seven percent increase in total production next year, as a result of five new systems, to be brought into operation in 2018 and three others in 2019.
Petrobras is to continue its ongoing divestment plan. Previously announced projects will not be interrupted, and the company will retain its partnerships, with a potential for $26.9 billion as incoming capital.