Petrobras, Brazil’s state-owned oil and gas corporation, has revealed its strategic plan for the 2024-2028 period, highlighting a focus on oil and natural gas investments as drivers of growth. The plan, approved by Petrobras’ board of directors on November 23, positions the energy giant to pave the way for a more sustainable and environmentally responsible future.
The strategic blueprint places a significant emphasis on allocating US$11.5 billion to projects aimed at curbing the company’s carbon footprint. These initiatives will spotlight the role of biorefining, wind, solar, carbon capture, utilization, and storage (CCUS), as well as hydrogen technologies in Petrobras’ quest for decarbonization.
With a total forecasted capital expenditure (CAPEX) of US$102 billion for the 2024-2028 period, marking a 31% increase from the previous plan, Petrobras intends to channel US$91 billion into ongoing projects while earmarking US$11 billion for additional endeavors pending further financial feasibility studies before execution.
Petrobras underscored that its Exploration and Production (E&P) segment will dominate investment allocation, comprising 72% of the total CAPEX, with the pre-salt region securing the lion’s share of US$73 billion. This investment, deemed “economically and environmentally advantageous”, will focus on producing higher-quality oil with lower greenhouse gas emissions.
The company’s commitment to environmental resilience was evident through its pledge to maintain a carbon intensity of up to 15 KgCO2e per barrel of oil equivalent by 2030, ensuring economic viability even in scenarios of low oil prices, with a projected average break-even of US$25 per barrel of Brent crude.
Petrobras also envisages the deployment of 14 new floating production storage and offloading units (FPSOs) within the next five years, targeting a production output of 3.2 million barrels of oil and gas equivalent per day. Although production projections for 2025 and 2026 might experience a slight dip due to global market dynamics, the company said that these fluctuations fall within anticipated industry uncertainties.
In parallel, the Gas and Energy segment is set to receive US$3 billion in CAPEX over the same period, aligning with Petrobras’ strategy to bolster natural gas supply, expand infrastructure, and integrate renewable energy sources.