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Petrobras (New York Stock Exchange:PBR) +1.9% in Friday’s trading as CEO Jean Paul Prates told Bloomberg in an interview that the company should continue to increase fossil fuel production for decades to come.
In comments that can ease concerns among some investors that Brazil’s new administration would prioritize non-essential investment projects over oil and gas, Prates said oil production remains the company’s top priority while investment in wind power and other renewables will be modest by comparison.
Prates said Petrobras (PBR), which paid a record dividend last year, should strike “a better balance” between sending cash to shareholders and investing.
Brazil’s fossil fuel production is poised to hit a record 3.4 million bbl/day this year and continue to grow through 2030; the country would then need new discoveries to maintain and increase production.
The chief executive said Petrobras (PBR) must exploit existing finds in pre-salt areas and find new ones, while opening up new basins in other parts of Brazil, including the region in the far north of the country near Guyana, where Exxon has found trillions of barrels.
Brazil’s President Luiz Inácio Lula da Silva said earlier this week that Petrobras (PBR) should suspend its planned asset sales.
