Petrobras addresses its focus on energy transition and profitable assets at a meeting with investors in New York

The president of Petrobras, Jean-Paul Prates, attended this Tuesday (01/30) the opening of the "Deep Dive Petrobras," a meeting held in New York to showcase the company to international investors and increase its market transparency. After years of only focusing on the present, this officer mentioned that Petrobras is looking into the future, trying to get stronger and reach a firm footing on the energy transition process the world is going through.     

- We are an oil company in transition. We are transforming Petrobras gradually, investing in new energies without abandoning oil overnight. Regardless of the segment in which we will operate, it is important to stress that we will invest in profitable assets and areas that have synergies with the activities the company has been undertaking, using all the technical knowledge Petrobras already has. We will not venture into the unknown; we are preparing Petrobras for the future responsibly - added Prates to an audience of roughly 50 analysts and investors, particularly of major overseas investment funds.    

During the event, the investors had the chance to learn more about the company's main issues and obtain a detailed description of Petrobras's 2024-2028+ Strategic Plan. The company will invest USD 102 billion in the next five years. It is the most ambitious investment plan by a Brazilian company. Of this total investment, USD 91 billion corresponds to projects under implementation (portfolio under implementation) and USD 11 billion to projects under assessment (portfolio under assessment), subject to additional financing studies before contracting and execution begin.

The company's Exploration and Production Director, Joelson Falcão Mendes, also spoke at the event. He reaffirmed that the global oil demand must continue to rise within the following decades, and projections by the International Energy Agency indicate that Brazil may account for a substantial part of this supply—roughly 5% of the global oil volume in the future.

- Petrobras's E&P segment has good prospects for the coming years. Petrobras's total production curve will reach 3.2 million barrels of oil and gas daily in 2028.  With the energy transition, the market should prefer crude oil with a lower carbon footprint. Petrobras has a competitive edge since its oil is among the most decarbonized in the world, stressed Joelson.

New technologies, using anti-corrosive materials, 3D industrial plants, and digital twins, bring more efficiency and add even more value to Petrobras. He also pointed out the importance of the investments in Exploration, which will amount to USD 7.5 billion until 2028. In this context, investments in new exploratory frontiers like the Equatorial Margin should receive USD 3.1 billion worth of Exploration by 2028.

The officer recalled that the company was announced as the leading global offshore industry award winner. A recognition for the technologies devised to renew the Campos Basin, the source of the Brazilian deep-water production. Those technologies, for instance, led to a 55% reduction in greenhouse gas emissions in the Marlim field.

The Engineering, Technology, and Innovation Director, Carlos Travassos, introduced the company's express project portfolio. On the horizon of the 2024-2028+ Strategic Plan, the company will drill over 350 underwater wells to develop production, install over 8,000km of ducts, and put into operation 14 PFSOs, 10 of which have already been hired. Travassos mentioned that the supply chain for the oil and gas industry has faced challenges in the past year and that Petrobras is prepared for such a scenario.

- Petrobras has proactively taken some measures, seeking partnerships with the supplier market, technological efficiency, and innovation to mitigate the impacts caused by any problems with the chain. The company is also closely monitoring risks to secure the predictability of its investments - said Travassos.

He also presented research and development initiatives by Petrobras to the investors. By 2028, the company will have invested USD 3.6 billion in the segment, so technological innovation, which is embedded in Petrobras's DNA, will continue to drive the construction of the company's future. Travassos also pointed out that the Petrobras Center for Research and Development (Cenpes), the largest in Latin America, has worked in an increasingly more integrated manner with Petrobras's business areas.

The company's integrated work has also been addressed during the event. Brazil is the 8th biggest oil byproduct consumer in the world, and its participation in the refining, transportation, and trade segments, for instance, has the potential to monetize Petrobras's hydrocarbon reserves. The company is aware of the new consumption patterns and sees a business opportunity in low-carbon products; it has initiatives on the market such as neuter carbon Gasoline Podium, CAP Pro Asphalts, and Diesel R5 with 5% renewable content.  
 
- Petrobras is seeking a solid position to meet the demands for fossil fuels and provide the market with low-carbon products, said Claudio Schlosser, Petrobras's Logistics, Trade, and Market director.
 
Brazil has a natural vocation for biorefining due to the raw materials available there. In this regard, Petrobras is investing in Diesel R5 production in the Repar, RPBC, Reduc, and Replan refineries. It will also build up dedicated plants solely to produce 100% renewable aviation biokerosene and diesel at RPBC and GASLUB, which will be finished after 2028.
 
In the past years, the company has implemented the RefTOP program, which is set up to place its refining park among the best in the world in terms of operational and energy efficiency by 2023. The program has achieved some impressive results, with USD 589 million in earnings from 2021 to 2023.

In addition to investments in biorefining, Petrobras will also expand the capacity of its refineries focused on energy efficiency and operational performance. The company intends to complete RNEST's Train 2, the Gaslub, implement new diesel production units (HDT) at Replan, RNEST, and Gaslub, and revamp the existing Revap and Regap units.    

- We will invest in the existing assets to increase refining capacity with better product conversion and quality.   We will increase the supply of diesel S-10 by 40% and adjust the quality of our lubricants to group 2 - concluded Petrobras's executive manager of Refining Technology, Rodrigo Abramof.