Petrobras Announces $13 Billion Investment in Campos Basin by 2025, and Rio de Janeiro Will Benefit from Many Jobs, Royalties, Special Participation, and Dividends

Petrobras Investments and Arrival of New Companies Boost Oil and Gas Sector in the Campos Basin, Generating Jobs in Rio de Janeiro

Between 2021 and 2025, Petrobras plans to invest US$ 13 billion in business in the Campos Basin, mainly for the revitalization of oil fields. At the same time, companies that have acquired fields in the region previously operated by Petrobras have been promoting a boost in the oil and gas sector and prospects for growth in local economies. At least six new companies have started operating in the region, with expectations of increasing production. The rise in production will generate greater returns for society through taxes, royalties, special participations, jobs, and dividends. According to data from the Federation of Industries of the State of Rio de Janeiro (Firjan), four of the companies that purchased assets in the region have already presented development plans totaling R$ 13.2 billion.

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• Investments of US$13 Billion in the Campos Basin by the World Leader in Oil Exploration and Production Petrobras Promise to Generate Jobs, Taxes, Royalties, Special Participations, and Dividends

Petrobras Focuses on Assets with Potential for Higher Value Generation in the Medium and Long Term

To invest in the revitalization of its fields in the Campos Basin, Petrobras has been reallocating investments through active portfolio management, aiming to engage in businesses that align with Petrobras’s size. As a result, the company has focused on assets with potential for greater value generation in the medium and long term and higher profitability possibilities. In the region, this strategic reallocation of investments has already accumulated around US$ 3.7 billion from the sale of assets such as 50% of the Tartaruga Verde and Espadarte Fields, Frade Field, Pampo Cluster, Enchova Cluster, and Pargo Cluster.

Another positive aspect of this strategy is that, with new owners, these assets have received investments to enhance production and, consequently, return to society through taxes and participations. In other words, greater production means greater returns for society. In the concession regime, governmental participations comprise signature bonuses, royalties, special participations, and payments for occupancy or retention of area, in addition to normal taxes on business activities such as ICMS, ISS, PIS, Cofins, IRPJ, CSSL, among others. In 2020, Petrobras paid R$ 32 billion in Governmental Participations, totaling R$ 244 billion in the last six years.

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Three New Platforms and 100 Wells

As a world leader in deep and ultra-deep water exploration and production, Petrobras currently produces 710,000 barrels of oil equivalent (boe) per day in the Campos Basin, which represents 25% of oil and gas production in Brazil. There are about 280 producing wells and 29 offshore platforms in operation – producing both in post-salt and pre-salt. It is part of Petrobras’s strategy to continue producing strongly in this important oil basin, and a significant renovation plan is underway, with investments already being made and forecasted for the coming years. Petrobras has invested US$ 53 billion in the region over the last 10 years, putting more than 270 wells into operation, in addition to 10 new production systems.

Owner of world-class assets with high value generation, Petrobras will install three new platforms in the Campos Basin over the next five years. The installation of two platforms in the Marlim field is scheduled for 2023 – with the capacity to produce, together, 150,000 barrels of oil per day (bpd) and process 560,000 barrels of liquids per day – and one unit for 2024 for the integrated complex of Parque das Baleias, with the potential to produce alone 100,000 bpd of oil and process 240,000 barrels of liquids per day.

In the plan to extend production from one of the largest deepwater oil complexes in the industry, the two Marlim platforms will allow for the expansion of production from the fields until 2048, continuously generating wealth and maintaining jobs and support services in the region. The platforms will be interconnected to 77 wells (14 new and 63 that will be relocated from Decommissioned Production Units). The new systems will enable the increase of current production from Marlim and Voador of about 45,000 boepd (barrels of oil equivalent per day), providing an important learning and knowledge front for other revitalization projects. About 100 new wells are also expected to be interconnected to the already installed production systems in the Campos Basin. Between 2017 and 2019, Petrobras acquired 14 exploratory blocks, covering a total area of 12,000 km² – which is practically equivalent to the extension of a new Campos Basin. Most of the promising prospects are located in the pre-salt layer of this basin.

More Than Just Extending the Lifespan of Fields, Revitalization Investments Will Provide Countless Gains

The expertise in revitalizing mature fields comes from the accumulated knowledge about such reservoirs in exploratory and production development activities at Petrobras and the development of technologies led by its highly qualified technical team. As it progresses, the process will allow for even more knowledge to be added and efficiency gains to be implemented in the revitalization of other areas in the future, as this is the dynamic that drives the capital-intensive oil and gas industry and the generation of benefits for societies.

More than just extending the lifespan of fields, revitalization investments will provide countless gains not only for Petrobras but for society as a whole. In addition to the obvious financial returns generated by increased production from the fields over time, the robust investments to be made by Petrobras in the revitalization of the Campos Basin will disseminate and extend the impact – such as economic activity movement and job generation – that such activities have been generating for decades in municipalities in Rio de Janeiro and the country.