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Petrobras doubles hydrocarbons as part of $ 68 billion investment plan

Brazil’s Petrobras, Latin America’s largest oil producer, has decided to raise capital spending to $ 68 billion over the next five years as state-owned groups are betting on their role as low-cost hydrocarbon suppliers in energy conversion. It has become.

The full-name company Petroleo Brasileiro announced spending plans for 2022-2026 this week. That’s almost a quarter of the previous budget of $ 55 billion for the period starting this year.

Most of it is spent on oil exploration and production, with the largest share going to its profitable “presalt” deep-sea reserves. In the biggest offshore discovery of the century, the company states that the area is cheaper to develop and emits less carbon per barrel.

“”[Our focus is] Earn time in this race towards the 2050 horizon, where fossil fuel use may decrease worldwide. We want to be an option.As long as you need, Petrobras [there] Because of its efficiency and low carbon content, “Chief Executive Officer Joa Kinsylva Erna told the Financial Times.

The overall spending plan is still below what was expected before the coronavirus pandemic began, but it shows how Petrobras believes its future is to maximize production.

Many large international rivals are addressing pressure from shareholders and campaign participants. Abandon new excavation In the fight against climate change.

Wells in the presalt area are highly productive, “extraction activity means lower carbon emissions per barrel than average, and lighter oil with lower carbon emissions required for processing,” Rice said. Francisco Monardi, a Fellow of Latin American Energy Policy at the University’s Baker Institute, said.

Petrobras is committed to reducing operational emissions by 25% by the end of the decade. The company has made a $ 2.8 billion commitment to decarbonization and other projects, critics say.

“In today’s world matrix, replacing petrobras oil with another oil will definitely generate more emissions,” said Chief Financial Officer Rodrigo Arauho Alves.

The comment came as follows Oil benchmark Global stocks plummeted on Friday over concerns over new strains of coronavirus, believed to be behind the surge in Covid-19 cases in southern Africa.

After a 3.9% drop on Friday, Petrobras’ São Paulo preferred stock fell 1.5% in 2021, but still surpasses the broader Bovespa index, which fell 14%.

The recent rise in crude oil prices has allowed Petrobras to make a profit and reach its goal of reducing total debt to less than $ 60 billion.

This marks a milestone in the turnaround of the business, with the state holding about 37% stake but holding just over half of its voting rights.

Under the previous government, Petrobras was on the verge of bankruptcy in a massive corruption scandal after fuel price controls cost tens of billions of dollars.

When Double-digit inflation Prior to next year’s elections, Brazilian President Jair Bolsonaro is aiming for the company’s practice of moving diesel and gasoline prices in line with international market rates.

Silva e Luna argued that despite political and public pressure, he adhered to pricing policies and said corporate governance rules prevented external interference.

“We understand the political debate, but we believe there is no room for interference,” he said. “In this regard, our investors can rest assured.”

Silva Erna, a reserve general with no experience in the oil and gas industry, was appointed after him in February. Predecessor was fired By Bolsonaro in a controversy over fuel prices.

Additional report by Carolina Ingizza in São Paulo

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Petrobras doubles hydrocarbons as part of $ 68 billion investment plan

Source link Petrobras doubles hydrocarbons as part of $ 68 billion investment plan

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