ARKANSAS, Nov 24 (Future Headlines)- Brazil’s state-run oil company, Petrobras, has revealed an ambitious strategic plan outlining investments totaling approximately $102 billion within the 2024-2028 period. This substantial boost in expected investments, marking a 31% increase from the previous plan, reflects Petrobras’ commitment to capital discipline, debt control, and a diversified portfolio. The plan, under the leadership of CEO Jean Paul Prates, encompasses various segments, with a significant focus on oil exploration and production. This comprehensive overview delves into the key components and implications of Petrobras’ strategic investment plan.

Petrobras’ strategic plan outlines a substantial investment of $102 billion within the 2024-2028 period, representing a significant leap from the previous projection of $78 billion for 2023-2027. The increase is attributed to new ventures, potential acquisitions, the reintroduction of previously earmarked assets, and inflationary impacts across the supply chain.

CEO Jean Paul Prates emphasizes the responsible increase in Petrobras’ total investments, underlining a commitment to capital discipline and debt control. Exploration and production will constitute the majority, with 72% of the spending, reflecting Petrobras’ core focus on expanding its oil production capabilities. Refining, transportation, and commercialization will receive a significant investment of $17 billion, contributing to the overall energy value chain.

Petrobras envisions an increase in daily production from 2.8 million barrels of oil equivalent per day (boed) in 2024 to 3.2 million boed by 2028, signaling a commitment to bolstering its hydrocarbon output. A notable allocation of $7.5 billion is earmarked for exploration activities, emphasizing Petrobras’ dedication to uncovering new oil and gas reserves. The Equatorial Margin exploration, considered a promising frontier, will receive $3.1 billion, reflecting Petrobras’ strategic focus on potential growth areas.

Petrobras allocates $17 billion to refining, transportation, and commercialization, underscoring the significance of a robust and efficient downstream segment in its overall strategy. Petrobras announces its return to the fertilizer sector, with plans to resume operations at one plant and complete the construction of a second facility. This move aligns with broader strategic diversification efforts.

Petrobras demonstrates a substantial commitment to low-carbon initiatives, allocating $11.5 billion—more than double the amount designated in the previous plan. Low-carbon initiatives include decarbonization efforts, advancements in low-carbon energy, and investments in biorefining, wind, solar, carbon capture and storage, and hydrogen.

Petrobras outlines a trajectory for increasing investments in low-carbon initiatives over the years, with a proportion of 6% in 2024 rising to 16% by 2028, reflecting the company’s alignment with global sustainability goals. President Luiz Inacio Lula da Silva’s engagement with CEO Jean Paul Prates ahead of the plan’s publication indicates a collaborative effort to incorporate adjustments that contribute to job creation in the country.

Reporting by Moe Khaled; Editing by Sarah White