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Petrobras Announces 2040 Strategic Plan and 2019-2023 Business and Management Plan


Petrobras has approved the 2040 Strategic Plan and the 2019-2023 Business and Management Plan, prepared in an integrated manner.

2040 Strategic Plan

The Strategic Plan brings a new vision of an integrated energy company, aligned with the needs and the evolution of society’s habits that will increasingly seek diversification in energy sources and uses. The focus in oil and gas, present in the vision of the previous plan and still important for the coming years, will give more room for other energy sources, on the horizon until 2040.

The strategies of the company were adjusted, defining the focus of its actions by business segment, in view of the transition toward a low-carbon economy, risks relating to the geographical concentration and commodity, detailed below:

Exploration and Production

  • Maximize the value of Petrobras through active management of the E&P portfolio;
  • Ensure the sustainability of oil and gas production, prioritizing activities in deep waters.

Natural Gas

Optimize the position in the natural gas and energy segment in Brazil and develop positions on the global market through partnerships.

  • Refining, Transportation, Trading and Petrochemicals
  • Maximize the value of Petrobras through active management of the portfolio for refining, logistics, trading and petrochemicals, integrated into the activities of national oil and gas production;
  • Leave the fertilizer business, LPG distribution, biodiesel and ethanol holdings and production.


Operate in profitable renewable energy businesses, with focus on wind and solar energy in Brazil.

Exploration and production continue to be the most important value generation engine of the company, and the focus remains on the development of production in deep waters, notably in the pre-salt areas. Refining, transportation and trading will continue to operate in integration with E&P, but with a new participation model for Petrobras, considering partnership with other companies, and in the case of petrochemicals, its potential integration with refining will be better explored. With the expansion of gas production, the company will pursue greater value generation, considering natural gas as a vehicle for growth and establishment of a global position for Petrobras. The company will also seek partnerships in renewable energy businesses, as a new value generation engine with focus on a sustainable future for the company.

Oil, NGL and Natural Gas Production

In 2019, oil production growth will be 10% in Brazil and 7% in total production, due to the entry into operation of 5 new systems in 2018 and 3 more in 2019. Throughout the Plan, it is foreseen the start-up of 13 new systems. For the period between 2020 and 2023, total oil and natural gas production will grow at an average rate of 5% per year.

Continuous cost efficiency and pre-salt lifting costs below US$ 7/boe will drive the average lifting cost to levels under US$ 10/boe from 2020.

Repositioning in Refining

The Plan foresees repositioning in refining by means of partnerships in the Northeast and South clusters, which represent 40% of the installed refining capacity in Brazil, allowing to share business risks and establish a more dynamic, competitive and efficient sector, in addition to generating liquidity for the company.


This plan also brings a commitment to the decarbonization of processes and products, establishing zero growth of absolute operational emissions until 2025, considering 2015 as reference, even with increase in production. Targets are set to reduce emissions intensity by 32% in E&P and 16% in Refining between 2015 and 2025, when we’ll reach 15 kg CO2e/boe in E&P and 36 kg CO2e/t CWT in Refining.


Through the discipline of costs, debt reduction and commitment to profitability, the company estimates a strong free cash flow generation in the plan period.

Petrobras will move forward with the divestment projects already announced and will continue with partnerships and divestments driven by active portfolio management, with potential cash entry of US$ 26.9 billion over the period of the plan.

These initiatives, combined with an operating cash generation estimated at US$ 114.2 billion, after dividends, taxes, and contingencies, will allow Petrobras to carry out its investments and reduce its debt, without the need for new net borrowings on the horizon of the plan.

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