Petrobras shocks with $77 billion in investments by 2029!

Petrobras shocks with $77 billion in investments by 2029!

Petrobras has announced an ambitious plan that includes massive investments over the next few years. Despite the challenges posed by the energy transition and market turbulence, the company remains optimistic and is committed to expanding in the Brazilian energy sector. The investment budget for the period from 2025 to 2029 totals $111 billion, as Agencia Petrobras reported.

Of that $111 billion, $77.3 billion is earmarked for exploration and production. The focus is heavily on pre-salt projects, which will account for 60% of this total. Petrobras plans to build 14 new platforms within the next five years to increase daily production capacity by 225,000 barrels. This is part of the goal to increase total production to 3.2 million barrels of oil and gas equivalent per day by 2029.

Strategic planning and investments

The Company approved the master plan known as "Strategic Plan 2050" (SP 2050) and the Business Plan 2025-2029 (BP 2025-29) on November 21, 2024. While the SP 2050 outlines the company's long-term vision up to 2050, the BP 2025-29 focuses on short and medium-term objectives. This strategic planning also includes Petrobras pursuing a leading role as an integrated energy company that combines oil and gas-based businesses with sustainable business models.

A particular focus will also be placed on the domestic shipbuilding industry, with a budget of 29 billion reals (approximately $5.12 billion) to build 52 ships by the end of 2026. Up to 65% of these ships will be manufactured locally. Petrobras has also applied to the Brazilian Securities and Exchange Commission (CVM) for a new bond issue of R3 billion to finance these priority investment projects.

Sustainability and financial goals

As part of its commitment to sustainability, Petrobras also plans to neutralize its operational emissions by 2050. Investments in the energy transition amount to $16.3 billion, representing 15% of the total capital expenditure (CAPEX) for the five-year plan. The company aims to reduce overall emissions by 30% by 2030 compared to 2015 levels.

Additionally, Petrobras plans to pay between $45 billion and $55 billion in ordinary dividends over the next five years. Increasing refining capacity and producing low-carbon fuels are also part of the plan to increase efficiency and meet growing market demands.

Dividends will be paid from June 1, 2025; the eligibility deadline was also June 2, 2025. During this time, Petrobras also introduced new regulations, including banning external lithium batteries and e-cigarettes on board offshore helicopters to increase safety.

Despite the challenges presented by the market, Petrobras has reiterated its commitment to financial transparency and ethical business practices, positioning the company well for the future.