 | |
 Petrobras headquarters in downtownRio de Janeiro, built by Odebrecht S.A.[1] | |
| Company type | PublicS.A. |
|---|---|
| ISIN | |
| Industry | Energy:Oil and gas |
| Founded | 3 October 1953; 72 years ago (3 October 1953)[2] |
| Founder | Government of Brazil |
| Headquarters | Rio de Janeiro, |
Area served | Worldwide |
Key people |
|
| Products | Petroleum Petroleum products Natural gas Lubricant Petrochemicals Fertilizers Biofuels |
Production output | 3.40 millionbarrels of oil equivalent (20,800,000 GJ) per day(2023)[3] |
| Revenue |  US$ 124.47 billion[4] (2022) |
| US$ 37.5 billion(2021)[5] | |
| US$ 36.62 billion[6] (2022) | |
| Total assets |  US$ 174.3 billion(2021)[5] |
| Total equity | US$ 69.8 billion(2021)[5] |
| Owner | Government of Brazil (29.02%)[7][a] |
Number of employees | 45,532(2021)[8] |
| Subsidiaries |
|
| Website | petrobras.com.br |
Petróleo Brasileiro S.A., better known by andtrading as theportmanteauPetrobras (Portuguese pronunciation:[ˌpɛtɾoˈbɾas,pet-]), is aBrazilianmajority state-ownedmultinational corporation in thepetroleum industry headquartered inRio de Janeiro. The company's name translates toBrazilian Petroleum Corporation — Petrobras.
The company was ranked #71 in the 2023Fortune Global 500 list.[9] In the 2023Forbes Global 2000, Petrobras was ranked as the 58th-largest public company in the world.[10]
Petrobras was created in 1953 under thegovernment of Brazilian presidentGetúlio Vargas with the slogan "The Oil is Ours" (Portuguese: "O petróleo é nosso"). It was given a legal monopoly in Brazil.[11] In 1953, Brazil produced only 2,700 barrels of oil per day.[12] In 1961, the company's REDUC refinery began operations near Rio de Janeiro,[13] and in 1963, itsCenpes research center opened inRio de Janeiro; it remains one of the world's largest centers dedicated to energy research.[14] In 1968, the company established Petrobras Quimica S.A ("Petroquisa"), a subsidiary focused onpetrochemicals and the conversion ofnaphtha intoethene.[15]
Petrobras had begun processingoil shale in 1953, developing thePetrosix technology for extracting oil from oil shale. It began using an industrial-sizeretort to process shale in the 1990s.[16] In 2006, Petrobras said that their industrial retort could process 260 tonnes/hour of oil shale.[17]
In 1994, Petrobras put thePetrobras 36, the world's largestoil platform, into service. It sank after an explosion in 2001 and was a complete loss.[18] In 1997, the government approved Law N.9.478, which broke Petrobras's monopoly and allowed competition in Brazil's oilfields, and also created thenational petroleum agency, Agência Nacional do Petróleo (ANP), responsible for the regulation and supervision of the petroleum industry, and the National Council of Energy Policies, a public agency responsible for developing public energy policy.[19] In 1999, the National Petroleum Agency signed agreements with other companies, ending the company's monopoly.[20]
In 2000, Petrobras set a world record for oil exploration in deep waters, reaching a depth of 1,877 metres (6,158 ft) below sea level.[21] In 2002, Petrobras acquired the Argentine company Perez Companc Energía (PECOM Energía S.A.) from thePerez Companc Family Group and its family foundation for $1.18 billion. This acquisition included assets inArgentina, Brazil,Venezuela,Bolivia,Peru, andEcuador, 1.1 billion barrels of crude oil reserves, and production of 181 thousandbarrels of oil equivalent (1,110,000 GJ) per day.[22]
In 2005, Petrobras announced ajoint venture with Nippon Alcohol Hanbai KK to sell Brazilianethanol to Japan, called Brazil-Japan Ethanol.[23] On 21 April 2006, the company started production on the P-50 oil platform in theAlbacora-Leste oil field at Campos Basin, which made Brazil self-sufficient in oil production.[12] During the administration of theWorkers' Party in the 2010s, Petrobras spent an estimated $40 billion subsidizing motor fuels, causing it to become the world's most indebted oil company.[24] By November 2015, the company had accumulated $128 billion in debt, 84% of it denominated in foreign currencies.[25]
In 2022, under the administration ofCaio Paes de Andrade, Petrobras achieved its highest net profit in history, totaling R$188.3 billion, distributing R$215.7 billion in dividends, making it the second largest dividend payer in the world.[26]
In summer 2023, Petrobras entered into a 5-year agreement withWeatherford International for providing intervention servicesoffshoreBrazil. As part of the cooperation, the US company will also providedigitalization of production using the Centro well construction optimization platform.[27]
Also in 2023, Petrobras announced the resumption of construction of a new production line at theAbreu e Limarefinery inIpojuca,Pernambuco,Brazil. The initial investment in the refinery is estimated at $18.5 billion, and the refinery will refineheavy crude oil from the Pre-Salt region.[28]
The company operates in six business areas, listed in order of revenue:[2]
Petrobras controls significant oil and energy assets in 16 countries in Africa, North America, South America, Europe, and Asia.[2]
However, Brazil represented 92% of Petrobras' worldwide production in 2014 and accounted for 97% of Petrobras' worldwide reserves on 31 December 2014,[2] when the company had 8,112.8 millionbarrels of oil equivalent (4.9633×1010 GJ) of proved developed reserves and 4,599.7 millionbarrels of oil equivalent (2.8140×1010 GJ) of proved undeveloped reserves inBrazil.[2] Of these, 62.7% were located in the offshoreCampos Basin.[2] The largest growth prospect for the company is theTupi oil field in theSantos Basin.[2]
In 2015, the company produced 2.284 millionbarrels of oil equivalent (13,970,000 GJ) per day, of which 89% waspetroleum and 11% wasnatural gas.[2]
Reserves held outside of Brazil accounted for 8.4% of production in 2014.[2] The majority of these reserves are inSouth America; the company has assets inBolivia andColombia.[2]
The company also owns exploration blocks in theGulf of Mexico,[2] in a joint-venture with Murphy Oil.
In 1961, Petrobras geologistWalter K. Link publishedLink's memorandum, which implied that the company was better off exploring offshore instead of onshore.[29] In 1963, Petrobras discovered theRecôncavo Baiano andCarmópolis oil fields.[19]
The company's growth was halted by the1973 oil crisis. The entire country was affected, and the "Brazilian miracle", a period when annualGDP growth exceeded 10%, ended. Petrobras nearly went bankrupt.[30] In 1974, the company discovered an oil field in theCampos Basin. This discovery boosted its finances and helped it restructure nationwide.[31] In 1975, theBrazilian Government temporarily allowed foreign operators into Brazil, and Petrobras signed exploration contracts with foreign companies for oilfields in Brazil.[32]
The company was affected by the1979 energy crisis, although not nearly as badly as in 1973.
In 1997, Petrobras reached the production milestone of 1 million barrels (160,000 m3) per day. The company also executed agreements with other Latin American governments and began operations outside Brazil.[33]
In 2003, on its 50th anniversary, Petrobras surpassed 2 millionbarrels of oil equivalent (12,000,000 GJ) of daily production.[33] On 1 May 2006, after theBolivian gas conflict, Bolivia's presidentEvo Morales announced the nationalization of allgas and oil fields in the country and ordered the occupation of all fields by theBolivian Army.[34] On 4 May 2006, Petrobras cancelled a major future investment plan in Bolivia as a result.[35] The Bolivian government demanded an increase in royalty payments from foreign petroleum companies to 82%, but eventually settled for a 50% royalty interest.[36]
In 2007, Petrobras inaugurated the Petrobras 52 Oil Platform. The 52 is the biggest Brazilian oil platform and the third-biggest in the world.[37]
In 2007 and 2008, Petrobras made several major oil discoveries including theTupi oil field (formerly known as the Lula oil field), theJupiter field, and theSugar Loaf field, all in theSantos Basin, 300 km off the coast ofRio de Janeiro. The oil fields were discovered by partnerships that include Petrobras,Royal Dutch Shell, andGalp Energia. However, estimates for the reserves of these new fields varied widely.[38]
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The P-51 Platform, the first semisubmersible platform built entirely in Brazil, capable of producing up to 180,000 barrels of oil per day, started production in theCampos Basin in January 2009,[39] and in February 2009, China agreed to loan Petrobras US$10 billion in exchange for a supply of 60,000–100,000 barrels of oil per day to a subsidiary ofSinopec and 40,000-60,000 barrels of oil per day toPetroChina.[40] In August 2009, Petrobras acquiredExxonMobil'sEsso assets inChile for US$400 million.[41]
In September 2010, Petrobras completed a US$70 billion share offering, the largest share offering in history, to be used to develop newly discovered oil fields.[42] Giovanni Biscardi and Machado Meyer represented Petrobras. Biscardi brought his Brazilian corporate practice toGreenberg Traurig in January 2020.[43]
In 2012, Petrobras surrendered permits to explore offshore inNew Zealand. Petrobras did not provide a reason but the New Zealand Prime MinisterJohn Key said the decision was "not a reflection on the capacity to undertake deep-sea drilling or the prospect of activity of that area". He attributed the decision to a regrouping by the company after some setbacks.[44]
In July 2013, a workerstrike action shut down production at several of the company's oil platforms.[45] In September 2013, Petrobras sold eleven onshore exploration and production blocks inColombia toPerenco for US$380 million.[46]
In September 2013Organizações Globo reported on national television that the USNational Security Agency (NSA) had been spying on Petrobras. The information was based on a top secret NSA file provided toThe Guardian journalistGlenn Greenwald byEdward Snowden as part of theGlobal surveillance disclosures. The file showed that Petrobras was one of several targets for the NSA's Blackpearl program, which extricates data from private networks.[47] Petrobras announced that it was investing R$21 billion over five years to improve its data security.[48]
In 2014, the company sold its assets inPeru toPetroChina for US$2.6 billion.[49] Also in 2014, Petrobras set a new company record for average daily production of 2.863 millionbarrels of oil equivalent (17,520,000 GJ).[50]
In January 2017, the company concluded the sale of 100 percent of Petrobras Chile Distribuición Ltda (PCD) to theSouthern Cross Group. The transaction included the licensing of the Petrobras and Lubrax brands for 8 years. To operate the assets acquired from Petrobras in Chile, Southern Cross created Esmax, a company that acts as a Petrobras licensee in the fuel and lubricant distribution segments. In March 2019, the company concluded the sale of 100 percent of Petrobras Paraguay Distribución Limited (PPDL UK), Petrobras Paraguay Operaciones y Logística SRL (PPOL) and Petrobras Paraguay Gas SRL (PPG) to the Grupo Copetrol, through its subsidiary Paraguay Energy. The agreement provides for the licensing for the exclusive use of the Petrobras brand by Nextar (the successor of Petrobras Paraguay Operaciones y Logística SRL) at that country's service stations, for the initial term of five years. In February 2021, the company concluded the sale of entire stake in Petrobras Uruguay Distribución S.A. (PUDSA), by indirect subsidiary (Petrobras Uruguay Sociedad Anónima de Inversión -PUSAI), in Uruguay, to Mauruguay S.A., an indirect wholly owned subsidiary of Disa Corporación Petrolífera S.A. (DISA).[51]
In January 2020, Petroleo Brasileiro stated that it ended all of its business in Africa after completing the sale of a 50% stake in Petrobras Oil & Gas BV.[52]
The Brazilian government directly owns 54% of Petrobras'common shares with voting rights, while theBrazilian Development Bank andBrazil's Sovereign Wealth Fund (Fundo Soberano) each control 5%, bringing the State's direct and indirect ownership to 64%.[53] The privately held shares are traded onB3, where they are part of theIbovespa index.[citation needed] It is also listed in theNew York Stock Exchange in the form ofAmerican depositary receipts and in theMadrid Stock Exchange.
The key trends for Petrobras are (as of the financial year ending 31 December):
| Revenue (USD billion)[54] | EBIT (USD billion)[55] | Total Assets (USD billion)[56] | Market cap (USD billion)[57] | |
|---|---|---|---|---|
| 2000 | 26.95 | 9.16 | 63.08 | 13.71 |
| 2005 | 56.32 | 17.31 | 78.63 | 78.16 |
| 2006 | 72.34 | 20.03 | 98.68 | 112.95 |
| 2007 | 87.73 | 19.31 | 129.71 | 252.78 |
| 2008 | 118.25 | 28.19 | 125.69 | 107.43 |
| 2009 | 91.86 | 23.35 | 200.27 | 198.69 |
| 2010 | 120.05 | 27.47 | 310.19 | 224.83 |
| 2011 | 141.70 | 28.28 | 316.41 | 156.23 |
| 2012 | 149.83 | 16.77 | 327.39 | 124.16 |
| 2013 | 141.46 | 15.37 | 321.42 | 90.69 |
| 2014 | 143.65 | -4.25 | 298.68 | 47.91 |
| 2015 | 97.31 | -1.78 | 230.52 | 25.57 |
| 2016 | 81.40 | 7.90 | 246.98 | 64.31 |
| 2017 | 88.82 | 7.76 | 251.36 | 65.18 |
| 2018 | 90.60 | 14.79 | 222.06 | 81.56 |
| 2019[58] | 76.59 | 19.45 | 229.74 | 101.18 |
| 2020 | 53.68 | 5.54 | 174.34 | 71.83 |
| 2021 | 83.96 | 33.20 | 174.34 | 69.59 |
| 2022 | 124.47 | 56.81 | 187.19 | 69.46 |
| 2023[58] | 102.41 | 35.42 | 217.07 | 103.56 |
| 2024 | 91.41 | 14.98 | 181.64 | 77.50 |
Petrobras is a major supporter of the arts in Brazil.[59]
Operation Car Wash (Portuguese:Operação Lava Jato) was a criminal investigation by theFederal Police of Brazil'sCuritiba branch. Originally amoney laundering investigation, it expanded to cover allegations of corruption at Petrobras, where executives allegedly acceptedbribes in return for awarding contracts to construction firms at inflated prices.[60] The aim of the investigation was to ascertain the extent of a money laundering scheme, estimated by the Regional Superintendent of the Federal Police ofParaná State in 2015 atR$6.4–42.8 billion (US$2–13 billion), largely through theembezzlement of Petrobras funds.[61][62]: 60
The authorities issued over a thousand warrants against business figures and politicians.[63] It also led to a wave of arrests. Fernando Soares, also known as "Fernando Baiano," a businessman and lobbyist, was allegedly the connection between major Brazilian construction firms and the government formed by theWorkers’ Party(PT) andBrazilian Democratic Movement (PMDB).[64][65] Between 2014 and February 2016, theFederal Public Prosecutor's Office (Portuguese:Ministério Público da União) filed 37 criminal charges against 179 people, mostly politicians and businessmen.[66] Former PresidentLuiz Inácio Lula da Silva[67] and then PresidentDilma Rousseff[68] were also implicated.
On 8 March 2016,Marcelo Odebrecht, CEO ofOdebrecht and grandson of the company's founder, was sentenced to 19 years in prison after being convicted of paying more than $30 million in bribes to Petrobras executives.[69]Eduardo Cunha, president of theChamber of Deputies from 2015 to 2016, was convicted of taking approximately $40 million in bribes and hiding funds in secret bank accounts and sentenced to 15 years in prison.[70][71]
Protests broke out calling for the resignation orimpeachment of PresidentDilma Rousseff. The most widespread of these occurred on 13 March 2016 in over 300 municipalities. Police estimates gave about 3.5 million protestors throughout the country.[72] Some of the protests were in areas previously thought of as strongholds of theWorkers Party, of which Rousseff was the leader.[73]
TheBill and Melinda Gates Foundation sued Petrobras and its auditors,PriceWaterhouseCoopers as a result of the corruption scandal.[74] In January 2018, Petrobras agreed to pay $2.95 billion to settle a U.S. class action corruption lawsuit.[75] Later in September 2018, Petrobras agreed to pay $853.2 million to settle withBrazilian andU.S. authorities.[76] Petrobras settled with shareholderVanguard Group in June 2017.[77]
On 1 February 2023 the company said it received R $132 million, as victim-beneficiary of the award-winning collaboration agreement signed between the Federal Prosecutor's Office and Rogério Santos de Araújo, before the Supreme Court.[78]
Petrobras's website notes several initiatives to preserve the environment. These include efforts to support both ocean and forest ecosystems.[79] Most notably, Petrobras has sponsoredpopulation studies and conservation efforts forhumpback whales in northeast Brazil. The company's efforts helped to rebuild Brazil's humpback whale populations from 2,000 in the mid-nineties to over 9,000 in 2008.[80]
Petrobras subscribes to theUnited Nations Global Compact, a voluntary agreement regarding human rights,working conditions,corruption, and theenvironment.[81]
In 2008, the Spanish consultancy firm Management and Excellence named Petrobras the world's mostsustainable oil company.[82]
| Date | Volume (litres) | Location | State |
|---|---|---|---|
| March 1975 | 6 million | Guanabara Bay | Rio de Janeiro |
| October 1983 | 1.5–3 million | Bertioga | São Paulo |
| February 1984 | 700,000 | Cubatão | São Paulo |
| August 1989 | 690,000 | São Sebastião | São Paulo |
| January 1994 | 350,000–400,000 | Campos Basin | Rio de Janeiro |
| May 1994 | 2.7–3.1 million | São Sebastião | São Paulo |
| March 1997 | 600,000 – 2.8 million | Guanabara Bay | Rio de Janeiro |
| October 1998 | 1–1.5 million | São José dos Campos | São Paulo |
| January 2000 | 1.3 million | Guanabara Bay | Rio de Janeiro |
| March 2000 | 18,000 | Tramandaí | Rio Grande do Sul |
| March 2000 | 7,250 | São Sebastião | São Paulo |
| July 2000 | 4 million | Barigui Iguaçu Rivers | Paraná |
| August 2000 | 1,800 | Rio Grande de Norte | Rio Grande do Norte |
| August 2000 | 4,000 | Angra dos Reis | Rio de Janeiro |
| November 2000 | 86,000 | São Sebastião | São Paulo |
| March 2001 | 1.4 million | Campos Basin | Rio de Janeiro |
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22°54′34″S43°10′45″W / 22.9094°S 43.1793°W /-22.9094; -43.1793
