Petrobras Business plan and E&P Strategy and challenges

Rudimar Lorenzatto presented on behalf of Petrobras CEO Roberto Castello Branco, who was unable to attend.

In a video, Mr. Branco spoke about a new strategy underpinned by five pillars: maximization of return on capital employment; capital cost reduction; focus on lower costs; meritocracy; and respect for people, the environment, and safety. He went on to describe the future of the company, how it is focusing on technology, investing in digital transformation, and artificial intelligence to increase efficiency.

Mr. Lorenzatto then outlined the company’s three key performance indicators for value creation: total reported injuries, which last year was just 0.8 per million men; debt which, with exposure to high price volatility, must be reduced; and an EVA program with a goal to increase by $2.6 billion in 2020.

Petrobras is focusing on deep and ultra-deep water assets, while reducing its participation in onshore and shallow water assets. By focusing on one area, the goal is to increase the operational efficiency of those assets and increase the recovery factor. Its business model is now more than ever about valuable partnerships. The company sees its key challenges as occupational and process safety; reducing the time between discovery and first oil; enhancing its new procurement strategy; revitalizing major mature fields with a focus on increased recovery; digital solutions and technology innovations in wells and topsides; and low-cost solutions and innovations for decommissioning.