Brazil's Petrobras revises strategic plan to boost low-carbon investments

SAO PAULO, June 1 (Reuters) – Brazilian state-run oil company Petrobras (PETR4.SA) said on Thursday its board of directors had approved a revision of part of its 2023-2028 strategic plan in a bid to increase investments in low-carbon initiatives.

Petroleo Brasileiro SA, as the company is formally known, said in a securities filing that under the new plan it would target 6% to 15% of its total capital expenditure (CAPEX) for low carbon, up from 6% in the 2023-2027 strategic plan.

The move, Petrobras said, is aimed at preparing the company for the energy transition, “reconciling the current focus on oil and gas with the search for diversification of our portfolio in low carbon businesses.”

Chief Executive Jean Paul Prates, who took office earlier this year appointed by President Luiz Inacio Lula da Silva, had previously said that under his watch the company would seek to drive a transition to renewables while keeping its oil expansion on track.

The announcement to boost low-carbon investments comes as the company bids for a license to drill a controversial well near the mouth of the Amazon river, which Petrobras sees as a “low-risk” activity but has been previously rejected by environmental agency Ibama.

Petrobras’ new five-year strategic plan is expected to be fully disclosed by the end of this year.

Reporting by Gabriel Araujo; Editing by Steven Grattan

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