Petrobras CEO Discounts Impact of Falling Oil Prices Due to Strong Markets in China and India
Petrobras Chief Executive Officer Magda Chambriard asserts that the Brazilian oil giant remains resilient despite a potential decline in global oil prices under President Donald Trump's policies.
Strategic Plan Robust Despite Lower Oil Prices
Chambriard emphasizes that the company's five-year strategic plan can withstand oil prices at $65 per barrel. She anticipates that prices will not fall significantly below this level, as US unconventional production requires sustenance.
Strong Markets in China and India
Petrobras has established robust markets in China and India, mitigating the potential impact of US trade policies. Chambriard highlights that the company exports to these two countries, which comprise the largest populations globally.
Outlook for Oil Prices and Production
She predicts that crude oil prices will likely trade between $70 and $75 per barrel under the current US administration. Petrobras's strategic plan assumes an average Brent crude price of $83 per barrel this year.
Expansion Plans in India and Brazil
Chambriard identifies potential exploration opportunities in India, which is offering new exploration blocks. Petrobras also plans to increase oil production in Brazil by 400,000 barrels per day over the next five years, targeting major emerging economies in the BRICS group.
New Frontier in Brazil
The Equatorial Margin offshore frontier in Brazil presents significant opportunities for production expansion beyond 2030. Petrobras is seeking a license to drill its first well in the Foz do Amazonas basin, which shares geological similarities with Guyana's highly productive oil fields.
Environmental Compliance and Presidential Support
Chambriard expressed confidence in obtaining the drilling license this year, highlighting Petrobras's comprehensive environmental mitigation measures. President Luiz Inacio Lula da Silva has indicated support for oil exploration in the Equatorial Margin.