On November 21, the Board of Directors of Petrobras, Brazil's national oil company, approved an ambitious five-year investment plan, projected to allocate up to $111 billion between 2025 and 2029 to enhance its oil and natural gas production and exploration activities. Under this plan, Petrobras will accelerate capital expenditures in deepwater oil exploration, low-carbon energy investments, and the optimization of production from mature oil fields, with the goal of further strengthening its competitiveness in the global oil market.
According to the latest disclosed plan, $98 billion will be dedicated to ongoing oil and natural gas extraction projects and exploration activities, while an additional $13 billion will be invested in projects under evaluation. Key investment areas include the development of subsalt layers in deepwater basins, which is expected to account for 60% of the total investment. Furthermore, Petrobras will allocate $20 billion to the construction of refining, transportation, and trade infrastructure, and $11 billion will be directed towards expanding natural gas and low-carbon energy projects. This strategic plan reflects the company's goal of simultaneously advancing both traditional and transition energy sources.
In terms of production, Petrobras aims to increase its average daily oil and gas output to 3.2 million barrels of oil equivalent by 2029, a rise of more than 14% compared to the expected 2.8 million barrels in 2025. The company also plans to introduce 10 new oil and gas production systems, with 9 already contracted. Additionally, Petrobras is intensifying its investment in low-carbon energy projects, with an expected $16.3 billion investment, representing approximately 15% of the total planned expenditure. As global energy dynamics shift, Chinese energy companies—particularly those with extensive experience in oil exploration and development—could become key technology partners or investors for Petrobras. Against the backdrop of both parties advancing energy transition and sustainable development, future cooperation is expected to create further market opportunities for companies in both Brazil and China, further strengthening their mutually beneficial energy partnership.
Picture Source: Petrobras