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Highlights on production and sales in 4Q19


We have delivered an excellent operating performance. Reaching daily, quarterly and annual oil and gas production records.

In 4Q19, oil and gas production reached 3.025 million barrels of oil equivalent per day (MMboed), which represents a new landmark in Petrobras history, as we break through the 3.0 MMboed barrier in a quarter for the first time.

In 2019, we recorded an average production of 2.770 MMboed, reaching the upper limit of the target set for 2019, of 2.7 MMboed, with a variation of 2.5% up or down, increasing 5.4% in relation to 2018. Oil production in Brazil was 2.172 MMbpd, exceeding the target of 2.1 MMbpd.

The operating result for the year reflects the better results in 2H19, driven by the ramp-up of new production systems, which more than made up for the challenges faced in 1H19. The ramp-ups of P-67 and P-69 in the Lula field contributed to new monthly records for both our own and the operated production of 3.1 MMboed (November) and 3.8 MMboed (December), respectively. Also in November, with the start of production on P-68, we completed the implementation schedule for 8 production systems in less than 24 months, something unprecedented in our history. In addition, in December, we reached a new daily record in our own production of 3.3 MMboed.

The 2020 production target is 2.7 MMboed, with a variation of 2.5% up or down, corresponding to the commercial production of 2.4 MMboed and 2.2 MMbpd of oil. The numbers consider the effect, in Petrobras stake, of Tartaruga Verde and Nigeria fields sales, whose transactions have already been concluded and which, together, produced 86 thousand barrels per day (kbpd).

Production in the pre-salt layer continues to evolve, reaching 1.533 MMbpd in 4Q19 and 1.277 MMbpd in 2019, representing an increase of 46.4% against 4Q18 and 28.4% against 2018, respectively. In 2019, oil production in the presalt came to represent more than half of total oil production in Brazil, 59% compared to 49% in 2018. On November 6, we acquired the assets of Itapu and Búzios in the Transfer of Rights Surplus auction, reaffirming our focus on the exploration and production of world-class offshore assets, mainly in the pre-salt, in which we are the natural owners.

Búzios is the largest offshore deep-water oil field in the world. It is a world-class asset, with substantial reserves, low risk and low lifting cost, being resilient to price scenarios below US$ 40 per barrel. It is an asset in which we are the natural owner, as Petrobras is able to extract a higher return than another operator.

We ended 2019 with 9,590 MMboe in proven reserves (SEC criterion), in line with the previous year. It is worth noting that the reserves of Itapu and Búzios assets acquired in the Transfer of Rights Surplus auction are not included in this volume. The divestment operations concluded during the year provided the anticipated monetization of 72 MMboe. Disregarding the divestments, we were able to replace 106% of the volume produced, mainly due to the good performance and the greater production history of the Santos Basin pre-salt reservoirs, in addition to incorporations related to the re-allocation of volumes due to the revision of the Transfer of Rights contract and the approval of new projects in the Santos, Campos and Espírito Santo Basins. The relationship between the volume of proven reserves and the volume produced is 10.5 years.

On January 24, 2020, the P-70 platform, which will be installed in the Atapu field, in Santos Basin pre-salt, arrived in Rio de Janeiro. An innovation was used to transport the unit from China to Rio de Janeiro: a dry tow. It was loaded on a semisubmersible vessel used to transport heavy cargo instead of being driven by ocean tugs. With that, we were able to reduce the average transportation time from 100 days to around 45 days. Time is an extremely important variable for the return of a project, which highlights the contribution of the decrease in transportation time obtained through the use of dry tow. The P-70 has the capacity to process 150 kbpd and 6 million cubic meters of natural gas per day. The forecast is that it will start producing in the first half of this year.

On January 29, 2020, the P-77 reached its capacity of 150 kbpd, concluding its ramp-up in 10 months.

In the refining segment, we increased our production of bunker and low-sulfur fuel oil streams due to the appreciation of these streams in the international market due to the new specification of IMO 2020. In this way, we capture export opportunities and start supplying the domestic market with the new specifications. The production of these streams, in 4Q19, averaged 148 kbpd, an increase of 35% over 3Q19. The production of these streams is on an increasing trend, with a volume produced in 2Q19 of only 46 kbpd. Our refining system and logistics infrastructure are well positioned to capture these opportunities.

Oil exports increased 11% compared to 3Q19 and 38% compared to 4Q18. In November, Petrobras’ exports reached a record level of 767 kbpd.

In the gas and energy segment, electricity generation stands out, which increased 16% compared to 3Q19, reflecting the worsening of the hydrological scenario.

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