Brazilian oil giant Petrobras has unveiled an updated five-year business plan through to 2025 that further reduces investments while directing the bulk of capital expenditure to exploration and production activities.

Petrobras announced investments of $55.2 billion in the period from 2021 to 2025, down 27% from $75.7 billion previously announced for the five years between 2020 and 2024.

E&P still king

As in previous plans, the state-controlled company intends to channel the bulk of spending — $46 billion, or 84% of total capex — to upstream projects, with $32 billion heading solely for pre-salt assets.

“This allocation is adherent to our strategic positioning, focusing on world-class assets in deep and ultra-deep waters,” Petrobras said in a statement.

The plan calls for investments of $10.2 billion next year, followed by $11 billion in 2022, $11.9 billion in 2023, $11.6 billion in 2024 and finally $10.5 billion in 2025.

Petrobras estimates output to rise from 2.75 million barrels of oil equivalent per day in 2021 to 3.3 million boepd in 2025, as 13 new floating production, storage and offloading vessels are due to enter operation in Brazil in the period.

However, the Rio de Janeiro-based company highlighted that the production curve might be affected if ongoing asset divestments are completed.

The oil giant estimates production may ultimately go down by 600,000 boepd by 2025 if the sale of numerous upstream assets, including stakes in the Albacora and Marlim clusters, are pushed through.

Action on emissions

Petrobras also reviewed its low carbon and sustainability policies, with a commitment to reduce natural gas flaring and carbon dioxide reinjection to preserve the environment.

The company wants to achieve reductions of 25% in gas emissions and 32% in the carbon intensity of its upstream projects by 2025, and cut routine gas flaring to zero by 2030.

Also on the green agenda for the five-year period is a commitment to slash methane emission intensity by 30% and reduce refining carbon intensity by 16%.

Petrobras also aims to cut by 50% water collection in its operations by 2030, focusing on reuse, and does not increase waste generation process by 2025.

“Petrobras reinforces commitment to the environment and the use of new technologies for decarbonisation of our processes and products,” the company said.

On the financial front, Petrobras said debt reduction and deleveraging will remain a priority for the company.

From January last year to September this year, despite the effects of the Covid-19 pandemic and the oil price meltdown, Petrobras was able to reduce gross debt by $31.3 billion to $79.6 billion.

The goal is to further bring the number down to $67 billion next year and to $60 billion in 2022.

Finance

$20bn chopped: Petrobras cuts investments and sets new decarbonisation goal