Brazil’s state-run oil company Petrobras (NYSE: PBR) has signed a $2.8 billion deal to build and lease 12 new offshore support vessels for its oil platforms. The deal, valued at 16.5 billion reais, was reported by Reuters on Thursday.
This move is part of Petrobras’ broader modernization strategy outlined in its 2025-2029 strategic plan. The company has committed to a total investment of $111 billion over the next five years, marking a 9% increase from its previous 2024-2028 investment plan.
As part of the plan, Petrobras expects to generate strong free cash flow, allowing for regular dividends of between $45 billion and $55 billion over the next five years. There is also room for an additional $10 billion in extraordinary dividends. Last month, Petrobras announced an exceptional dividend payout of 20 billion reais (around $3.4 billion), a clear signal that the company intends to continue rewarding shareholders. A portion of this payout, approximately 15.6 billion reais, will come from a capital reserve that was originally intended for extraordinary dividends for the 2023 fiscal year. The delay in this payout earlier this year had been attributed to political interference by the Brazilian government, as Petrobras’ board had initially withheld the extra dividends.
In addition to its financial announcements, Petrobras also made a significant discovery last week. The company, along with its partner Ecopetrol (NYSE: EC), confirmed the largest gas find in Colombia’s history in the Guajira Basin. The discovery, which includes over 6 trillion cubic feet (Tcf) of gas, triples Colombia’s current gas reserves. Petrobras, the main operator in the venture, holds a 44.4% stake, while Ecopetrol owns the remaining 55.5%.
The two companies will now begin collecting meta-oceanic data to support the development of the project. They aim to begin gas production within three years, pending environmental approvals and confirmation that the discovery is commercially viable. If successful, the project could produce up to 13 million cubic meters (Mcm) of gas per day for a decade—almost half of Colombia’s current domestic gas demand. However, there are no current plans to export the gas outside of Colombia.
Related Topics:
- CNPC: China’s Oil Demand May Reach Its Peak by 2025
- Oil Giants Make Big Bets on Deepwater Expansio
- Oil Prices Increase as China Promises to Boost Monetary Stimulus