Petrobras's Board of Directors passed, at a meeting held Nov 21, the Strategic Plan 2050 (SP 2050) and Business Plan 2025-2029 (BP 2025-29). During the development of the Plans, the Board of Directors took part in discussions with the technical areas and the Executive Board, leading to the conclusion and approval of the final document.
To reinforce its long-term vision, Petrobras has separated its plan this year into two parts: the SP 2050, which aims to reflect on the future of the planet and how the company wants to be recognized in 2050; and the BP 2025-29, with short and medium-term goals, which aim to build the company's path to the future based on its strategic positions.
The Strategic Plan 2050 preserves Petrobras' vision of being the best diversified and integrated energy company in value generation, building a more sustainable world by balancing the focus on oil and gas with diversification into low-carbon businesses (including petrochemical products, fertilizers, and biofuels), sustainability, safety, respect for the environment, and full attention to people.
On the BP 2025-29 horizon, Petrobras forecasts investments of US$ 111 billion, with US$ 98 billion in the portfolio of projects under implementation and US$ 13 billion in the portfolio of projects under evaluation, consisting of opportunities with a lower degree of maturity and subject to additional financing studies before the execution begins. The total investment expected for the next five years is 9% higher than the volume projected in the last Strategic Plan 2024-28+.
Petrobras has the competitive edge of low-cost oil production and one of the lowest carbon footprints in the world. These conditions make it possible to reconcile leadership in the just energy transition with responsible oil and gas exploration in the country, in order to keep future production levels close to the current ones. Therefore, Petrobras' planning incorporates the ambition that the company should maintain its current relevance in supplying energy and in the economic development of Brazil, rising from 4.3 exajoules (EJ) in 2022 to 6.8 EJ in 2050, preserving Petrobras' representativeness at 31% of Brazil's primary energy supply. In addition, Petrobras reaffirms its ambition to neutralize its operational emissions by 2050.
In the five-year period from 2025 to 2029, the company will focus its efforts on taking advantage of these opportunities in the oil and gas market, with a focus on replacing reserves, increasing production with a lower carbon footprint and expanding the supply of more sustainable and higher quality products in its portfolio.
From a financial perspective, the priority is a more adequate, flexible and efficient capital structure, with cash generation higher than investments and financial obligations, while maintaining solid project approval governance, which guarantees profitable investments approved only with a positive net present value (NPV) in a robust scenario. With high-return projects, the company aims to ensure that the value generated is distributed to society through dividends and taxes.
Breakdown of investment portfolios (CAPEX)
Energy transition CAPEX is transversal and totals US$ 16,3 billion
Annual distribution of investments (CAPEX) in the Portfolio under Implementation
*Sanctioned projects are those with spending authorization.
Low-carbon initiatives have brought in USD 16.3 billion, an 42% increase over the previous plan. The company has also unveiled its Strategic Plan 2050 (SP 2050)
Click here for full announcement
Source: Petrobras
