Insight
Why Petrobras is sticking to its upstream roots
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Petrobras has emerged stronger from a corruption scandal and a massive pile of debt thanks to much improved governance that allowed better financial decisions, more strict cost and project controls, and an active portfolio management. Coupling this with the highly productive pre-salt fields, Petrobras will be able to provide robust cash flows to its investors during the next two decades. However as the world energy companies face a balancing act between energy transition and provide affordable fossil fuels in a short-term, Petrobras' efforts are mainly limited to control scope 1 and 2 emissions and facing political pressures to change fuel pricing policies. This is an uneasy situation considering that the company's reserves are not as big as other NOCs that are maintaining similar strategies. Petrobras needs to take the advantage of being a leaner and profitable company and establish a more robust energy transition strategy.
Table of contents
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Executive summary
- Upstream focus will still dominate the next five years
- Divestment: increased upstream concentration and retaining the lowest emitting assets
- Will exploration be enough to replenish reserves?
- Cash flow generation: upstream versus renewables
- Political backdrop
- Potential energy transition scenarios
Tables and charts
This report includes the following images and tables:
- NOCs' percentage of 2022 capital directed to the energy transition
- Deal count
- Deal valuations
- Emissions intensity comparison
- Reserve replacement comparison
- Petrobras production forecast
- NOCs 2022 capital allocation vs. resource life
- Petrobras cashflow forecast
- Cash flow comparison - Renewables
What's included
This report contains:
