The state-owned Brazilian energy heavyweight Petrobras $PETR3 (-1.16%)
$PETR4 (-0.55%)
has made a new oil discovery in the pre-salt area of its existing field off the coast of Brazil.

By drilling the 9-BUZ-99D-RJS well in the western region of the Búzios field in the Santos pre-salt basin, Petrobras was able to confirm the presence of oil in a new accumulation in a zone below the main reservoir.

The well is located 189 kilometers off the coast of Rio de Janeiro and was drilled at a water depth of 1,940 meters. Thanks to the tests carried out at a depth of 5,600 meters, the presence of oil was confirmed by electrical profiles.

Although the company emphasizes that these will be characterized later through laboratory analysis, the discovery is considered a confirmation of the pre-salt potential of the Búzios field. The partners intend to further analyze the results in order to proceed with activities in the area.

The consortium of the Búzios joint reservoir consists of Petrobras as operator (88.98% interest), CNOOC (7.34%) and CNPC (3.67%) and Pré-Sal Petróleo S.A. (PPSA) as manager.

This oil discovery follows the start-up of the Almirante Tamandaré FPSO as part of the field's sixth production system, which is expected to help increase production to 1 million barrels of oil per day by the second half of 2025.

The Brazilian state-owned oil and gas company Petrobras $PETR3 (-1.16%)
$PETR4 (-0.55%) has sold then Asian bunker market and completed the first sale of very low sulphur fuel oil (VLSFO) with a 24% share of renewable energies (B24) in Singapore

As announced, the VLSFO has been sold to Golden Island, a bunker supplier based in Singapore. Petrobras announced that the transaction took place in early February and the delivery date is scheduled for the end of the month.

"The sale of VLSFO, with a 24% share of renewable energy in the Asian market, is in line with Petrobras' strategy to develop new products for a low-carbon market, drive innovation to create business value and enable new energy and decarbonization solutions," emphasized Claudio Schlosser, Director of Logistics, Commercialization and Markets at Petrobras.

The product distributed by Petrobras Singapore was reportedly made from a blend of 76% mineral fuel oil, sourced mostly from the company's refineries, and 24% of ISCC-EU certified UCOME (Used Cooking Oil Methyl Ester), a biofuel derived from the processing of used cooking oil (UCO).

According to Petrobras, the company used the facilities of the Jurong Port Universal Terminal for production, where it has a lease agreement for fuel oil and B24 tanks.

The process of delivering renewable content bunkers follows the same operational procedures used for 100% mineral bunkers, mainly using smaller vessels to load the product at the terminal and deliver it to the consuming unit, the Brazilian company added.

The Brazilian energy company Petrobras $PETR3 (-1.16%)
$PETR4 (-0.55%) wants to acquire shares in African oil reserves, particularly in Angola, Namibia and South Africa, in order to increase its reserves The company expects production volumes to decline after 2030, according to a senior executive.

The Brazilian state energy company is currently in talks with companies including existing partners ExxonMobi, Shell and TotalEnergies to acquire a stake in their African assets, Sylvia dos Anjos, the company's director of exploration and production, told Reuters on the sidelines of the India Energy Week conference.

Petrobras hopes to produce 2.8 million barrels per day (bpd) in 2025 and plans to increase that to 3.1 million bpd by 2029, dos Anjos said.

The company is happy with current oil prices as its projects are "sustainable at a very low price of $45 per barrel," she added.

Global benchmark BrentLCOc1 snapped a three-day winning streak today, hovering near $77 a barrel, weighed down by higher U.S. crude inventories and concerns that U.S. trade tariffs could hurt the global economy.

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Petrobras $PETR3 (-1.16%)
$PETR4 (-0.55%) has met its oil and gas production targets for 2024, but that hasn't stopped the company from recording annual and quarterly production declines. According to the state-owned oil giant's production and sales report published on Monday, daily production of oil, natural gas liquids (NGLs) and natural gas averaged 2.66 million barrels of oil equivalent per day (BOE/d) last year, a decrease of 3.1% compared to 2023.

Domestic production of oil and NGLs amounted to 2.15 million barrels per day (bpd) in 2024, a decrease of 3.5% compared to the previous year. Natural gas production in Brazil amounted to 512,000 BOE/d, a decrease of 0.8% compared to 2023.

In the fourth quarter, total oil and gas production fell by 10.5% year-on-year to 2.59 million BOE/d. Oil and NGL production fell by 11.5% to 2.09 million bpd, while natural gas production fell by 6.1% to 507,000 BOE/d.

Petrobras set a new annual production record in the Brazilian pre-salt region: Company-operated production reached 2.2 million BOE/d and total operated production reached 3.2 million BOE/d. The pre-salt region accounted for 81% of the company's total production in 2024.

Despite these milestones, oil and NGL production in the pre-salt region fell by 9.1% year-on-year to 1.76 million bpd in the fourth quarter. For the year as a whole, however, pre-salt production rose slightly by 0.4% to 1.813 million bpd.

According to Petrobras, the decline in the fourth quarter was due to a higher number of maintenance shutdowns in the Búzios field. Production levels for the year as a whole were supported by the ramp-ups on the Sepetiba, Almirante Barroso, Anita Garibaldi, Marechal Duque de Caxias and Maria Quitéria platforms.

In the Brazilian post-salt region, oil and NGL production fell by 24% to 295,000 bpd in the fourth quarter compared to the same period in 2023. For the year as a whole, post-salt production fell by 20.2% to 305,000 bpd.

Petrobras attributed the decline to production restrictions on platforms that were put back into operation in the fourth quarter and the natural decline in mature fields. However, the increase in production on the Anna Nery platform and the commissioning of four new wells in the Campos Basin helped to offset some of the losses.

In terms of sales of refined products, Petrobras sold an average of 1.72 million bpd on the domestic market in 2024, which corresponds to a year-on-year decline of 1.4 %. In the fourth quarter, however, sales rose by 1.4% year-on-year to 1.758 million bpd.

Overall capacity utilization at the company's refineries reached 95% in the fourth quarter, one percentage point higher than in the same period in 2023. For the year as a whole, refinery capacity utilization averaged 93%, also one percentage point higher than in 2023.

The Brazilian state-owned oil and gas company Petrobras $PETR3 (-1.16%)
$PETR4 (-0.55%) has announced that its proven reserves of oil, condensate and natural gas have increased to 11.4 billion barrels of oil equivalent (boe) in 2024, compared to 10.9 billion boe in 2023.

According to Petrobras, oil and condensate and natural gas account for 85% and 15% of this total, respectively.

The increase in reserves is mainly due to the progress in the development of the Atapu and Sépia fields and the good performance of the facilities, with the focus on the Búzios, Itapu, Tupi and Sépia fields in the Santos Basin, the company said.

There were no relevant changes related to fluctuations in the oil price and the estimates were published in accordance with US Securities and Exchange Commission (SEC) regulations.

"Considering the production expected in the coming years, it is essential to continue investing in maximizing the recovery factor, exploring new areas and diversifying the exploration portfolio to replace the oil and gas reserves," Petrobras said in a statement.

The gap between Petrobras' fuel prices and international benchmarks $PETR3 (-1.16%)
$PETR4 (-0.55%) and international benchmarks has put the state-owned company under pressure in recent weeks. The market has the impression that the oil giant is sacrificing potential profits by waiting to adjust diesel and gasoline prices. On the other hand, raising prices now would increase pressure on the government, which is struggling with rising food inflation and growing public discontent. To make matters worse, diesel and petrol prices are set to rise on Saturday (01.02.2025) due to adjustments to the tax on the movement of goods and services (ICMS). The tax on petrol will rise by 7% to R$ 1.47, while diesel will increase by 5% to R$ 1.12.

Against this backdrop, the Petrobras Board of Directors met on Wednesday (29/01/2025) to review whether the company has complied with its current fuel pricing policy since May 2023. Although the Board of Directors does not decide on price adjustments, the context of the meeting is sensitive. Decisions on price changes are the responsibility of the Executive Board.

It appears that government officials close to the board believe that a price increase could be postponed for a few weeks if price assumptions remain within the established limits and if favorable economic conditions - such as a stable exchange rate and lower Brent oil prices - persist. The biggest challenge for Petrobras will be to convince the market that the fuel price increase can wait.

Petrobras' price gap with import parity has narrowed. StoneX estimates that Petrobras' diesel prices are R$0.36 below import parity, equivalent to 10.4%. The consultancy noted that this difference peaked at R$0.82 on January 20, due to currency fluctuations, expectations related to Donald Trump's policies and rising international prices due to severe weather in the US. Gasoline prices are R$0.17 or 5.9% below parity, according to StoneX.

The Brazilian Association of Fuel Importers (ABICOM) reports that Petrobras diesel prices are R$0.55 below international prices, a difference of 16%. On January 20, this discrepancy reached R$ 0.96, or 28%. Gasoline prices are R$0.24, or 8%, below parity, compared to R$0.42, or 14%, on January 20.

In a report, Itaú BBA stated that a possible diesel price increase would benefit Petrobras' stock performance if implemented. The bank estimates that the state-owned company's diesel prices are 10% below import parity, while gasoline prices are 8% below.

The oil giant has not adjusted diesel prices for over a year, with the last change - a reduction of 7.85% - taking place in December 2023. The last gasoline price adjustment was in July 2023, an increase of 7.04%.

On Monday (27/01/2025), the CEO of Petrobras, Magda Chambriard, met with President Lula, the Minister of Mines and Energy, Alexandre Silveira, and the Chief of Staff, Rui Costa, in Brasília. The meeting was not followed by an official announcement. However, according to g1 columnist Ana Flor, Ms. Chambriard hinted that Petrobras could raise diesel prices by R$0.18 to R$0.24 per liter in the coming weeks.

While fuel prices are causing debate, Petrobras' production remains robust. On Monday (27.01.2025), the company announced that it had achieved its oil and gas production targets set out in the 2024-2028 strategic plan. Total oil and gas production reached 2.7 million barrels of oil equivalent per day (BOE/D). Commercial oil and natural gas production amounted to 2.4 million BOE/d and oil production to 2.2 million barrels per day (BPD).

Brazil's state-owned energy company Petrobras $PETR3 (-1.16%)
$PETR4 (-0.55%)the largest oil producer in Latin America, ended last year with a production of 2.7 million barrels of oil equivalent per day (boed), the company said in a statement on Monday, without disclosing quarterly figures.

Petrobras added that its oil production reached 2.2 million barrels per day in 2024.

The company said the start-up of two new offshore platforms partially offset production losses due to maintenance work, unplanned shutdowns on other platforms, the natural decline of mature fields, as well as a strike at Brazil's environmental agency Ibama.

Petrobras is expected to present its production and sales report prior to the release of its fourth quarter financial results on February 26.

Petrobras $PETR3 (-1.16%)
$PETR4 (-0.55%) is interested in Bitcoin mining as a complementary activity. Marcelo Curi, a blockchain and crypto architect at Petrobras, has stated that the company is exploring this and other Web3 applications to reduce carbon emissions.

Bitcoin mining is increasingly being considered by major oil companies worldwide. Petrobras, a Brazilian state-owned company that produces nearly 3 million barrels of crude oil, is now exploring the integration of Bitcoin mining into its processes.

The aim of this implementation would be to develop a business model capable of carrying out these operations in order to reduce the company's carbon emissions.

Marcelo Curi, Certified Architect of Blockchain & Token Economy, who is leading this process, revealed that the company is "at the center of a historic R&D process" aimed at developing business/process models with this "powerful innovative framework for the benefit of value chains/networks in the transition to low carbon".

The Petrobras group, integrated by a multidisciplinary team consisting of climate change researchers, oil explorers and crypto experts, will also explore the possibilities of blockchain, tokenization and Web3.

In addition to reducing gas emissions, this will also increase the productivity of activities on site. While Petrobras has not indicated whether the implementation of gas-vented Bitcoin mining is part of this process, it could be one of the techniques explored by company leaders during this exploration process.

The state-owned Brazilian oil and gas company Petrobras $PETR3 (-1.16%)
$PETR4 (-0.55%) has extended the contract for a floating production, storage and offloading vessel (FPSO) in the Santos Basin off the Brazilian coast.

The Japanese company MODEC $6269 has converted the VLCC M/V Sunrise IV into an FPSO named Cidade de Angra dos Reis. It can process up to 100,000 barrels of oil per day and 5 million m3 of gas, is designed for the removal of H2S and CO2 and is capable of injecting CO2 into the well at a pressure of 550 bar, as well as exporting the sales gas onshore.

On behalf of the Tupi field consortium, consisting of Petrobras (67.216%, operator), Shell (23.024%), Petrogal (9.209%), and PPSA (0.551%), Petrobras has now signed with Tupi Pilot MV 22 and MODEC Serviços de Petróleo do Brasil amendments to the charter and service agreements for the FPSO anchored in 2,149 meters of water depth, extending the charter period of the unit for another five years until 2030.