Petrobras’ investment in a new plan should be similar to the current one, says Prates – 07/17/2023 – Market

Petrobras’ new strategic plan for the period from 2024 to 2028 should provide for a contribution similar to the current one (2023-2027), of around US$ 78 billion (R$ 375 million), having as a novelty a look at the energy transition, the company’s president, Jean Paul Prates, told Reuters.

The company should publish new adjustments to the current planning in August, as a way to prepare the market for the fully reformed strategic document expected to be published at the end of the year.

“Financially, [o plano] I don’t think so [será muito diferente]. The highlight will be this issue of renewables. It shouldn’t differ much because from one year to the next you can’t make many moves,” said Prates, in an exclusive interview, without giving any numbers.

“Of course we are going to have an important investment plan, with pre-salt being very important. This is a pre-salt, offshore oil company, but it is changing little by little”, he said, when commenting on the first planning to be be announced by its management.

In the current strategic plan, Petrobras foresees investments in exploration and production of US$ 64 billion (R$ 307 billion), with 67% earmarked for the pre-salt layer. In refining and natural gas, the company projects US$ 9.2 billion (R$ 44.2 billion), with around 50% of the resources invested in expanding and increasing the quality and efficiency of refining.

The executive stated that when he took over Petrobras in January, he had “the clear impression that the company was being prepared for a short-term sale”, with exorbitant profits, the sale of several assets and an exclusive focus on the pre-salt layer. .

Now, the new management is looking for a plan to prepare the company for the long term, looking at diversification and still pursuing profit.

“We have to continue being a highly profitable company because we have good assets, good people and technical knowledge of Brazil. This gives us that leverage to continue being extremely profitable and good for investors, good partner.”

In this way, the oil company will have more adjusted dividends for a reality where it projects and invests for the future, said Prates, pointing out that the company wants to attract shareholders who understand the long-term view of the oil company. “If it’s short-term, it’s no use,” he said.

EXPLORATORY ADVANCE AND EQUATORIAL MARGIN

Prates reiterated the company’s interest in exploring the Basin of Foz do Rio Amazonas, on the Equatorial Margin, considered the newest exploratory frontier for oil and gas, even after Ibama’s refusal this year.

“We believe that it will have the license, sooner or later”, said the executive, pointing out that the company will follow the requirements and deadlines set by the federal environmental agency.

The oil company has already appealed the decision by Ibama, with whom it has been interacting, but there is no deadline for a final decision.

“We are not going to give up on a new frontier, unless we say a peremptory no”.

In Brazil, the Equatorial Margin extends from Rio Grande do Norte to Amapá. Abroad, it comprises other countries where Petrobras may also study investments, such as Suriname and Guyana. Another exploratory possibility, according to him, could be the analysis of areas on the West African coast, where there are geological similarities.

The advance towards exploration in other countries has to do with a natural expansion by Petrobras, according to Prates, who is also evaluating opportunities in other areas, such as renewables.