Brazil Oil and Gas

Brazil Energy Insight and Petronotícas report that in a recent Webinar organized by Rio think-tank FGV Energia, Roberto Castello Branco, CEO of national oil company Petrobras, confirmed that the company will continue to focus on exploration and production;  it will not diversify into renewable energy. He claimed that the oil company will take advantage of its expertise and the high qualification of its petroleum engineers and geologists.  Castello Branco also recalled that the company has extensive technology for exploring ultra-deep waters. “Nobody better than Petrobras does that. We could not leave that (exploration and production) aside ”, he justified. 

Regarding renewables, the executive said that he decided not to invest significantly into this sector because it is a business that Petrobras does not know of. “Petrobrás has already lost a lot of money entering areas where it did not have the slightest knowledge, such as the production of palm and castor oils”,he recalled. In any case, Castello Branco noted that the company is doing ts “homework”, seeking to reduce the emission of greenhouse gases and increasing carbon capture capacity in its projects.  In parallel, Petrobras continues to invest in renewables R&D. “We only enter the business when we think we have the competence to win in that business. We are not going to enter into a business just because it is a wave or a fashion to invest in renewables ”, he said.

Offshore Windpower:  One such renewable energy project under development refers to an advanced conceptual design of two oil floating systems equipped with one or more wind turbines for operation in intermediate and deep water depths. The units will generate between 5 MW to 12 MW and will be used to power subsea systems or oil rigs. 

DIVESTMENTS: PETROBRÁS WILL MOVE FORWARD WITH ITS PLANS 

The president of Petrobrás guaranteed that the company´s divestment program will remain “intact” and that the planned assets will be sold. But he acknowledged that the process could be delayed. Castello Branco explained that some sales have already been completed, but have not yet been settled. “We are confident that buyers will honor the financial settlement,” he said. A list of divestment teasers can be viewed here.

The executive also added that Petrobras is intensifying cost cuts so that it can survive in a scenario of very low oil prices. “We jave preserved all R&D projects, which will boost efficiency and cost savings.  For example, the EXP 100 program, that will apply artificial intelligence, to reduce the probability of not finding oil in a [determined] borehole to practically zero ”. Castello Branco also cited another R&D program (PROD 1000), which aims to shorten the period between the exploration phase and the start of production to 1,000 days. 

For information on current Petrobras public tenders, please view the Petrobras Petronect website.  For information on the Brazilian oil and gas sector, please email regina.cunha@trade.gov.