Released November 28, 2023 | SUGAR LAND
en
Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Brazilian state-run energy giant Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil) has announced investments worth US$102 billion as part of its strategic plan for 2024-2028. The investments represent an increase of 31% compared to the previous strategic plan, showcasing the importance that the current government is placing on the development of the energy company.
About 89% of the funds are destined for ongoing projects, while the remaining 11% is expected to be invested in projects under evaluation.
Hydrocarbon exploration and production represents 72% of all the investments, with about 67% of that amount allocated to pre-salt projects. With these investments and higher production, Petrobras projects oil and gas production of 3.2 million barrels per day (BBL/d) in five years with the deployment of 14 new floating, production, storage, and offloading (FPSO) units. Ten of the units have already been contracted.
For exploration, about US$7.5 billion will be earmarked to search for resources in Brazil's Equatorial Margin and the Southeast basins, along with exploration in other countries.
Brazilian President Luiz Inacio Lula da Silva's government is trying to balance an environmental agenda with higher hydrocarbon production. Petrobras is seen as a bastion of sovereignty by the leftist leader, and its success represents a victory for his government.
On one hand, Lula has protected indigenous lands in the Amazon rainforest, while on the other hand, it is supporting a bigger and stronger Petrobras.
Refining, transport and marketing will receive about US$17 billion in investments. Petrobras plans to increase its processing capacity by 225,000 BBL/d by developing projects such as Train 2 at the Abreu e Lima refinery and enhancements across different refineries. For related information, see November 27, 2023, article - Petrobras Allocates Investment to Boost Refining Industry in Brazil.
The company also is projecting the production of cleaner fuels such as diesel S-10, which is expected to reach volumes of more than 290,000 BBL/d by 2029. Petrobras is seeking to reduce emissions from its downstream sector and improve energy usage across refineries.
Meanwhile, low-carbon projects also will take the central stage in Petrobras' strategy, with US$11.5 billion invested in the next five years. These include projects to decarbonize operations through the development of technologies such as wind, solar, hydrogen and carbon capture, utilization, and storage (CCUS).
"We have increased Petrobras' total investments responsibly, maintaining a focus on capital discipline and a commitment to keeping debt under control. Additionally, we have directed investments toward low carbon projects with a focus on profitability to generate long-term value. The energy transition will unfold gradually and responsibly as we will invest in new energy sources along with our ongoing investments in oil production. This approach is still necessary to meet global energy demands and finance the energy transition," said Petrobras President Jean Paul Prates.
Industrial Info is tracking 249 active Petrobras projects, worth US$47 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a list of detailed project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
About 89% of the funds are destined for ongoing projects, while the remaining 11% is expected to be invested in projects under evaluation.
Hydrocarbon exploration and production represents 72% of all the investments, with about 67% of that amount allocated to pre-salt projects. With these investments and higher production, Petrobras projects oil and gas production of 3.2 million barrels per day (BBL/d) in five years with the deployment of 14 new floating, production, storage, and offloading (FPSO) units. Ten of the units have already been contracted.
For exploration, about US$7.5 billion will be earmarked to search for resources in Brazil's Equatorial Margin and the Southeast basins, along with exploration in other countries.
Brazilian President Luiz Inacio Lula da Silva's government is trying to balance an environmental agenda with higher hydrocarbon production. Petrobras is seen as a bastion of sovereignty by the leftist leader, and its success represents a victory for his government.
On one hand, Lula has protected indigenous lands in the Amazon rainforest, while on the other hand, it is supporting a bigger and stronger Petrobras.
Refining, transport and marketing will receive about US$17 billion in investments. Petrobras plans to increase its processing capacity by 225,000 BBL/d by developing projects such as Train 2 at the Abreu e Lima refinery and enhancements across different refineries. For related information, see November 27, 2023, article - Petrobras Allocates Investment to Boost Refining Industry in Brazil.
The company also is projecting the production of cleaner fuels such as diesel S-10, which is expected to reach volumes of more than 290,000 BBL/d by 2029. Petrobras is seeking to reduce emissions from its downstream sector and improve energy usage across refineries.
Meanwhile, low-carbon projects also will take the central stage in Petrobras' strategy, with US$11.5 billion invested in the next five years. These include projects to decarbonize operations through the development of technologies such as wind, solar, hydrogen and carbon capture, utilization, and storage (CCUS).
"We have increased Petrobras' total investments responsibly, maintaining a focus on capital discipline and a commitment to keeping debt under control. Additionally, we have directed investments toward low carbon projects with a focus on profitability to generate long-term value. The energy transition will unfold gradually and responsibly as we will invest in new energy sources along with our ongoing investments in oil production. This approach is still necessary to meet global energy demands and finance the energy transition," said Petrobras President Jean Paul Prates.
Industrial Info is tracking 249 active Petrobras projects, worth US$47 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for a list of detailed project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
