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Petrobras approves 2020-2024 Strategic Plan


Petróleo Brasileiro S.A. - Petrobras reports that its Board of Directors approved, in a meeting held this week, the Strategic Plan for the 2020-2024 five-year period, in line with the company's strategic positioning, released on September 26, 2019.

Petrobras of the future will be a company with an operational return higher than its capital cost, positioned in world-class assets, with operation focused on oil and gas, advancing in the exploration and production of the Brazilian pre-salt, with an efficient refining system, capable of processing 1.1 million bpd. In relation to renewable energy sources, the company will act in research seeking to acquire skills for the eventual positioning in the long term in wind and solar energy.

The plan has three top metrics focused on safety of people, debt reduction and value creation:

  • Total Recordable Injuries per million man-hour frequency rate (TRI) below 1.0
  • Net debt/ Adjusted EBITDA below 1.5x
  • Delta of consolidated EVA® of US$ 2.6 billion


Petrobras' CAPEX forecasted for the five-year period is US$ 75.7 billion, of which 85% is allocated to the E&P segment. This allocation is in line with our strategic positioning, focusing on E&P assets, especially in the pre-salt, in which Petrobras has a competitive advantage and generates more return on investments.

The divestments forecasted in the plan vary between US$ 20-30 billion for the 2020-2024 period, being the highest concentration in the years 2020 and 2021.

Production of Oil, NGL and Natural Gas

The company decided to present a commercial production vision in order to represent the financial impact of production on the company's results, deducting from its natural gas production the volumes of gas reinjected into the reservoirs, consumed in E&P facilities and burned in production processes. In addition, the production curve does not include divestments, except of around 100 kboed, related to Nigerian fields and Tartaruga Verde field, which the sales transactions have already been signed and the closings are expected to occur in the short-term.

The oil and gas production curve estimated in the new plan indicates a continuous growth. During the five-year period, 13 new production systems are expected to start-up operation, all of which are allocated to deepwater and ultra-deepwater projects. 

Estimated oil and natural gas production (million boed)

For the 2020 production target Petrobras consider a variation of plus or minus 2.5%. The oil production in this year mainly reflects losses in volumes related to natural decline of mature fields and higher concentration of production stoppages to increase the integrity of the systems, partially offset by the ramp-up of new platforms. In the long term, the growth trajectory is supported by the new production systems - mostly in the pre-salt, with higher profitability and value generation – and by Campos Basin production stability.

Low carbon and sustainability commitments

So far, Petrobras have already advanced with a series of decarbonization actions in our processes, which involve reducing the flaring of natural gas, reinjection of CO2 and gains in energy efficiency. The company maintains its commitment to the decarbonization of processes and products, with a robust action plan in relation to carbon resilience and efficiency.

In this sense, the company provides ten commitments for the low carbon and sustainability agenda:

  1. Zero growth in absolute operating emissions by 2025*
  2. Zero routine flaring by 2030
  3. Re-injection of ~40 MM ton CO2 up to 2025 in CCUS projects
  4. 32% reduction in carbon intensity in the E&P segment by 2025
  5. 30%-50% reduction in methane emission intensity in the E&P segment by 2025
  6. 16% reduction in carbon intensity in refining segment by 2025
  7. 30% reduction in freshwater capture in our operations with focus on increasing reuse by 2025
  8. Zero increase in residues generation by 2025
  9. 100% of Petrobras facilities with biodiversity action plan by 2025
  10. Maintenance of investments in socio-environmental projects

*Carbon commitments related to 2015 base. Other commitments based on 2018.

Link to Petrobras Brazil country profile

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