Petrobras' strategic plan foresees investments of $102 billion
Petrobras' Board of Directors approved on Thursday (23) the Strategic Plan for the 2024-2028 period, envisioning investments totaling $102 billion, marking a 31 percent increase from the previous period. According to the company, the primary objective is to initiate the integration of energy sources to facilitate a "fair and responsible" energy transition.
In this new plan, approximately 60 percent of Petrobras' cash generation will be allocated back to society through taxes and payments to the federal government, states, and municipalities. Additionally, the company's gross debt will continue to be limited to $65 billion.
"We have increased Petrobras' total investments with a focus on responsibility, capital discipline, and controlling debt. Additionally, we've intensified investments in low carbon, prioritizing profitable projects for long-term value generation. Our approach to the energy transition is gradual, responsible, and increasing. We're investing in new energies while maintaining oil production to meet global energy demand and finance the energy transition," says Jean Paul Prates, head of Petrobras.
Investment breakdown
Out of the total planned investments for the 2024-2028 period, approximately $91 billion will be allocated to implementation projects, while $11 billion is reserved for projects under evaluation. The latter category encompasses initiatives undergoing additional financing capacity studies before entering the contracting and execution phases. Petrobras asserts that this breakdown reflects the company's dedication to transparency and governance.
In the investment breakdown by segment, 72 percent is allocated to exploration and production, 16 percent to refining, transportation, and marketing, 9 percent to gas and low-carbon energy, and 3 percent to corporate endeavors.
The amount allocated for the exploration and production segment is $73 billion, 67 percent of which will be invested in the pre-salt production. The company justifies this higher amount based on economic and environmental competitiveness, aiming to produce higher-quality oil and lower greenhouse gas emissions. The goal is to produce 3.2 million barrels of oil and gas equivalent per day over five years.
In the gas and low-carbon energy segment, a $3 billion investment over the five-year period aims to expand infrastructure and the natural gas portfolio, emphasizing new processing plants and pipelines.
Low-carbon projects will receive $11.5 billion, more than double the previous plan, focusing on decarbonization initiatives, business development in low-carbon energy, with emphasis on biorefining, wind, solar, carbon capture, utilization, and storage (CCUS), and hydrogen.
"Petrobras is once again investing in new energy projects. We will choose profitable projects, prioritizing partnerships to reduce risk and share learning. With this new front, we also want to develop Brazil's regional competitive advantages," says Prates.
Regarding its commitments to the environment and society, Petrobras plans to reduce carbon emissions, zero out material leakage, reduce freshwater abstraction and solid waste generation, and promote racial and gender diversity in leadership positions at its companies.
