Luiz (Unknown Analyst)'s questions to Petroleo Brasileiro SA Petrobras (PBR) leadership • Q4 2024
Question
An analyst identified as Luiz asked about the significant increase in the cost of new production units, questioning the economic rationale behind costs rising from ~$2.5 billion to ~$4.5 billion and citing factors like industry inflation and potential project complexity.
Answer
Executive Director of Engineering, Technology and Innovation, Renata Baruzzi, acknowledged a global price surge in raw materials post-Ukraine war but clarified that the new high-capacity Buzios rigs do not have added gas import complexity. She stated the company is actively streamlining projects and that these 225,000-barrel units offer high returns. CFO Fernando Melgarejo added that the change reflects a shift in the timing of existing projects from the strategic plan, not an increase in their scope or the addition of new, unannounced projects.