Petrobras Stock (PBR.US): Live Price Chart

Petroleo Brasileiro (PBR.US), also known as Petrobras, is a Brazilian multinational energy corporation with a market cap of 438.89 billion BRL as of 23rd June 2023. Founded in 1953 by the Brazilian government, Petrobras has grown to become one of the largest oil and gas companies in the world, focusing on the exploration, production, refining, and distribution of oil and natural gas.

Operating primarily in Brazil, the company plays a significant role in the country's energy sector, contributing to its economic growth and energy independence. It went public in 1956 and is listed on the New York Stock Exchange, as well as the São Paulo and Madrid stock exchanges. As the global energy landscape evolves, Petrobras remains committed to addressing the oil and gas industry's challenges and seizing opportunities for growth.

Petrobras Stock - History

The Early Years and Foundation

Petrobras was established in 1953 under the leadership of Brazilian President Getúlio Vargas, with the powerful slogan "The Oil is Ours" (Portuguese: "O petróleo é nosso"). At its inception, Petrobras was granted a legal monopoly in Brazil. Back then, Brazil's oil production was a modest 2,700 barrels per day.

Milestones in Expansion and Research

In 1961, Petrobras inaugurated the REDUC refinery near Rio de Janeiro. Two years later, in 1963, the Cenpes research center opened in Rio de Janeiro, becoming one of the world's largest centers dedicated to energy research. By 1968, Petrobras further expanded its capabilities by establishing Petrobras Quimica S.A. ("Petroquisa"), focusing on petrochemicals and converting naphtha into ethene.

Advancements in Oil Shale Processing

Starting its journey in oil shale processing in 1953, Petrobras developed the innovative Petrosix technology. By the 1990s, the company was utilizing an industrial-size retort to process shale. In 2006, Petrobras announced that their industrial retort could process 260 tonnes of oil shale per hour.

Significant Developments in the 1990s and 2000s

In 1994, Petrobras launched the Petrobras 36, the world's largest oil platform at the time, which unfortunately sank after an explosion in 2001. In 1997, Brazil passed Law N.9.478, ending Petrobras's monopoly and allowing competition in the oilfields. This law also established the Agência Nacional do Petróleo (ANP) to regulate the petroleum industry and the National Council of Energy Policies to develop public energy policies. By 1999, agreements with other companies officially ended Petrobras's monopoly.

In 2000, Petrobras set a world record in deep-water oil exploration, reaching a depth of 1,877 meters (6,158 feet) below sea level. In 2002, Petrobras acquired the Argentine company Perez Companc Energía (PECOM Energía S.A.) for $1.18 billion, expanding its assets across South America and significantly increasing its reserves and production capacity.

Strategic Partnerships and Achieving Self-Sufficiency

In 2005, Petrobras formed a joint venture with Nippon Alcohol Hanbai KK to sell Brazilian ethanol to Japan, named Brazil-Japan Ethanol. On April 21, 2006, Petrobras began production on the P-50 oil platform in the Albacora East field, achieving self-sufficiency in oil production for Brazil.

Financial Challenges and Recovery

During the 2010s, under the Workers' Party administration, Petrobras invested heavily in subsidizing motor fuels, resulting in the company becoming the world's most indebted oil company. By November 2015, Petrobras's debt had risen to $128 billion, with 84% of it denominated in foreign currencies.

Record-Breaking Profits and Recent Developments

In 2022, under President Jair Bolsonaro and the administration of Caio Paes de Andrade, Petrobras achieved its highest net profit ever, totaling R$188.3 billion. The company distributed R$215.7 billion in dividends, making it the second-largest dividend payer globally.

In the summer of 2023, Petrobras entered a 5-year agreement with Weatherford International to provide intervention services offshore Brazil. This partnership includes the digitalization of production using the Centro well construction optimization platform.

Additionally, in 2023, Petrobras announced the resumption of construction for a new production line at the Abreu e Lima refinery in Ipojuca, Pernambuco. The initial investment is estimated at $18.5 billion, focusing on refining heavy crude oil from the Pre-Salt region.

Petrobras Stock - International investments

Petrobras' Global Expansion and Achievements

Global Oil Exploration and Achievements

As of December 2006, Petrobras had a total oil production of 243,292 BOED, showcasing its global reach in oil exploration.

Nationalization and Reserves

In 2007, the Bolivian government nationalized Petrobras' refinery in Cochabamba. Despite this, in 2014, reserves outside Brazil accounted for 8.4% of the company's production. Most of these reserves are located in South America, particularly in Bolivia and Colombia. Additionally, Petrobras holds exploration blocks in the Gulf of Mexico through a joint venture with Murphy Oil.

Refineries Across Brazil

Petrobras operates several refineries across Brazil, divided into different regions:

Northeast Region:

• RNEST – Abreu e Lima Refinery – Suape (Pernambuco) – 230,000 bpd
• LUBNOR – Lubrificantes e Derivados de Petróleo do Nordeste – Fortaleza (Ceará) - 8,000 bpd

Southeast Region:

• REGAP – Gabriel Passos Refinery – Betim (Minas Gerais) – 150,000 bpd
• REPLAN – Refinery of Paulínia – Paulínia (São Paulo) – 415,000 bpd
• REVAP – Henrique Lages Refinery – São José dos Campos (São Paulo) – 252,000 bpd
• RPBC – Presidente Bernardes Refinery - Cubatão (São Paulo) – 178,000 bpd
• RECAP – Refinery of Capuava – Mauá (São Paulo) – 53,000 bpd
• REDUC – Refinery of Duque de Caxias – Duque de Caxias (Rio de Janeiro) – 239,000 bpd
• COMPERJ (Renamed GASLUB) – Itaboraí (Rio de Janeiro) – UNDER CONSTRUCTION

South Region:

• REPAR – Presidente Getúlio Vargas Refinery – Araucária (Paraná) – 207,563 bpd
• REFAP – Alberto Pasqualini Refinery – Canoas (Rio Grande do Sul) – 201,280 bpd

Production Milestones

In 1961, Petrobras geologist Walter K. Link recommended focusing on offshore exploration, leading to the discovery of the Recôncavo Baiano and Carmópolis oil fields in 1963. The 1973 oil crisis significantly impacted Petrobras, nearly bankrupting the company. However, the discovery of an oil field in the Campos Basin in 1974 revitalized Petrobras' finances. In 1997, Petrobras reached a production milestone of 1 million barrels per day and expanded operations internationally.

By its 50th anniversary in 2003, Petrobras surpassed 2 million barrels of oil equivalent in daily production. However, in May 2006, Bolivia's president Evo Morales nationalized all gas and oil fields, causing Petrobras to cancel major investments in Bolivia. Despite challenges, Petrobras continued to grow, launching the Petrobras 52 oil platform in 2007 and making significant oil discoveries in the Santos Basin between 2007 and 2008.

Notable Projects and Partnerships

In 2009, Petrobras introduced the P-51 Platform, the first semisubmersible platform built entirely in Brazil, capable of producing up to 180,000 barrels per day. In February 2009, China agreed to loan Petrobras $10 billion in exchange for oil supply. Petrobras also acquired ExxonMobil's Esso assets in Chile for $400 million in August 2009.

Financial Ventures and Corporate Affairs

In September 2010, Petrobras completed a historic $70 billion share offering to develop new oil fields. In 2012, Petrobras exited offshore exploration in New Zealand, and in 2013, a worker strike halted production at several oil platforms. In 2014, Petrobras sold its assets in Peru to PetroChina for $2.6 billion and set a new production record.

Between 2017 and 2021, Petrobras sold various international assets, including operations in Chile, Paraguay, and Uruguay, to focus on consolidating its operations. By January 2020, Petrobras had concluded its business in Africa.

Ownership and Corporate Structure

The Brazilian government directly owns 54% of Petrobras' common shares with voting rights, with the Brazilian Development Bank and Brazil's Sovereign Wealth Fund each controlling 5%, totaling 64% state ownership. The remaining shares are privately held and traded on B3, the New York Stock Exchange, and the Madrid Stock Exchange.