Latest news with #Chambriard
Yahoo
3 days ago
- Business
- Yahoo
Petrobras targets Africa for oil exploration region outside Brazil
Petrobras, the Brazilian state-run oil company, is setting its sights on Africa as its primary region for oil exploration activities outside its home country, reported Reuters, citing the company's CEO Magda Chambriard. She detailed the strategic intent to expand the company's presence in Africa, highlighting the welcoming approach from the Ivory Coast and interest from other African nations. The Ivory Coast has recently paved the way for Petrobras by offering priority access to nine exploratory offshore blocks. This gesture, described by Chambriard as rolling out the "red carpet", signifies a significant opportunity for the company to delve into deep and ultra-deep waters. Chambriard said: "We are experts in the eastern margin of Brazil. The correlation between Brazil and Africa is unequivocal, so we need to go to Africa." Nigeria, Angola and Namibia have also shown eagerness to collaborate with Petrobras, further cementing Africa's role in the company's global strategy. Petrobras' growing interest in international oil assets, particularly in Africa, comes as the company aims to augment its reserves amid environmental permit delays for new drilling projects off the coast of the Amazon rainforest. Moreover, Petrobras is looking to participate in an oil block auction in India in July as part of its broader exploratory ambitions. Under past leadership, Petrobras concentrated on Brazil's pre-salt fields, which are known for their high productivity. Now, Chambriard is tasked with balancing the economic aspirations of President Luiz Inacio Lula with the necessity of delivering investor returns and navigating the complexities of a global market with lower oil prices. Despite challenges in obtaining environmental permits for drilling in the Amazon's Foz do Amazonas region, Chambriard is optimistic about clearing the final hurdle for a permit by the second half of July. Petrobras has already initiated its plans in Africa, acquiring stakes in offshore oilfields in South Africa and São Tomé and Príncipe in 2023 and early 2024, respectively, with drilling expected to commence this year. Although Petrobras faced a setback when outbid by TotalEnergies for a share in Galp Energia's Mopane field discovery off Namibia's coast, Chambriard remains hopeful for future opportunities, stating: "We hope to be invited" to develop the field. "Petrobras targets Africa for oil exploration region outside Brazil" was originally created and published by Investment Monitor, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TimesLIVE
4 days ago
- Business
- TimesLIVE
Petrobras aims to make Africa its main exploratory region outside Brazil: CEO
Africa By Petrobras aims to make Africa its main region of development outside Brazil, the state-run oil giant's CEO told Reuters on Thursday during a wide-ranging interview about the company's strategy. Ivory Coast has extended the "red carpet" for Petrobras to explore deep and ultra-deep waters off its coast, when it gave the company preference in buying nine offshore exploratory blocks on Wednesday, said Petrobras CEO Magda Chambriard. She added that Nigeria, Angola and Namibia have also expressed interest in working with the Brazilian giant. "We are experts in the eastern margin of Brazil," said Chambriard, citing geological similarities between the region and Africa. "The correlation between Brazil and Africa is unequivocal, so we need to go to Africa." In recent years, Petrobras has shown an interest in buying stakes in oil assets abroad, especially in Africa, as it looks to boost reserves while it faces delays in obtaining environmental permits to drill for new oil off the coast of the Amazon rainforest. Petrobras is also seeking to explore India's coast, taking part in an upcoming oil block auction scheduled for July, Chambriard said. Petrobras's plans mark a return to the African continent after the company divested assets in the region under previous governments, as part of a broad plan that made the company focus on high-productivity areas in Brazil's pre-salt fields. The plans to explore new oil fields are part of Chambriard's strategy to handle the critical task of balancing President Luiz Inacio Lula's ambitions to use Petrobras to boost the economy with delivering profits to its investors, all while contending with the global challenge of lower oil prices. Petrobras, a cornerstone of Brazil's economy, is also at the center of high-stakes tension within Lula's administration, which aims to leverage oil revenues for economic growth while showcasing Brazil, the host of the upcoming COP30 climate summit, as a champion in the global fight against climate change. The company's plans to drill for oil off the coast of the Amazon rainforest, in the Foz do Amazonas region, have faced delays in obtaining environmental permits. But Chambriard told Reuters she believes the company will clear the last step to getting a permit to drill in the region in the second half of July. Meanwhile, the company's plans in Africa have already started being implemented. In 2023 it bought a stake in an offshore oil field in South Africa and in early 2024 it purchased an interest in fields in the island nation of Sao Tome and Principe, where it hopes to drill a well this year, Chambriard said. Despite the recent efforts, Chambriard said the firm was outbid by France's TotalEnergies for a share in Galp Energia's offshore discovery in the Mopane field in Namibia. "We hope to be invited" to develop Mopane, Chambriard added, without giving further details. Lower Brent oil crude prices have pushed the company to cut costs and simplify projects in Petrobras's upcoming strategic plan for the 2026-2030 period, Chambriard said. During the firm's first-quarter earnings call with analysts last month, Chambriard had already signalled a move towards austerity, pleasing investors. But Chambriard did not clarify whether cost-cutting efforts would impact the company's investment plans. If confirmed, a retreat from investment plans could mark a stark reversal for the Brazilian oil giant since Lula took office in 2023 and pushed the company to invest more to boost Brazil's economy. The firm is set to finally widen its role in Brazil's fertiliser production, as it expects to resume operation on two plants in the states of Sergipe and Bahia by the end of the year, Chambriard said. The CEO also confirmed a Reuters report that the firm is unhappy with the current level of control it has over petrochemical firm Braskem, and is looking for changes to a shareholders agreement that could give the oil company more power in Braskem's decision-making process. Petrobras has a 47% voting stake in Braskem but has appointed four of its 11 board members and one director out of seven, representation it considers insufficient, Reuters reported last week. Petrobras has no interest in having majority control over the firm, but it wants more power over it to "guarantee synergies", Chambriard said, without providing further details. Braskem is a "very important asset", Chambriard said. But, she added, "from our current point of view, Braskem's management is not what we want".
Yahoo
15-05-2025
- Business
- Yahoo
Petrobras upgraded to Buy at Jefferies as cost-cutting improves risk-reward
-- Jefferies upgraded Petroleo Brasileiro Petrobras (NYSE:PBR) to Buy from Hold, citing improved risk-reward driven by cost-cutting efforts and capital discipline. The move follows Petrobras' first-quarter earnings, which showed a focus on tighter spending and strategic prioritization under current oil prices. At the results call, CEO Chambriard emphasized a shift toward cost-cutting, project simplification, and capital discipline, while maintaining core projects in pre-salt and exploration. Jefferies noted that Petrobras' commitment to a base dividend payout of 45% of free cash flow, with projects breaking even at $45 per barrel, improves downside protection. The broker added that a more disciplined approach to capital allocation could lead to a 15% reduction in the company's 2026-2030 capex plan, freeing up cash to sustain base dividends of $6-7 billion annually. Jefferies sees upside from new production capacity, as two major floating production storage and offloading (FPSO) units—Mero 4 and Buzios-6/P-78—are expected to come online in the second half of 2025. 'This, along with the recently started-up Tamandare FPSO at the Buzios field, should enable PBR to continue to raise output near term, offering upside risk to the FY25 production growth target of +5%, in our view,' analysts led by Alejandro Anibal Demichelis said. Jefferies also highlights Petrobras' valuation as a major factor behind the upgrade. The stock has declined 28% over the last twelve months, materially underperforming peers. 'We see this as an undemanding valuation, relative to historical multiples, and see room for PBR to re-rate near term as the more discipline capital allocation push removes market concerns,' the analysts continued. Jefferies maintained its price targets at $15.30 for common shares and $14.30 for preferred shares, implying upside of roughly 26% and 25%, respectively. In the first quarter of 2025, Petrobras reported adjusted recurring EBITDA of $10.7 billion, around 3% below Bloomberg consensus. Strong upstream performance was partially offset by weaker refining margins. Free cash flow improved to $4.5 billion from $3.8 billion in the previous quarter, enabling the company to raise its ordinary dividend to $0.32 per ADR, up from $0.24 in Q4 2024. Related articles Petrobras upgraded to Buy at Jefferies as cost-cutting improves risk-reward JPMorgan flags signs of fatigue among retail investors Here are 3 key reasons why markets are rallying Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
13-05-2025
- Business
- Reuters
Brazil's Petrobras to revise strategic plan due to lower oil prices
RIO DE JANEIRO, May 13 (Reuters) - Brazilian state-run oil company Petrobras ( opens new tab is set to revise its five-year strategic plan due to lower Brent crude oil prices, Chief Executive Magda Chambriard told analysts during the firm's first-quarter earnings call on Tuesday. Chambriard said that Brent prices at $65 would require the firm to simplify their projects, adding that the moment was for cost-cutting and austerity measures.
Yahoo
09-05-2025
- Politics
- Yahoo
Head of Brazil's gas giant Petrobras criticized for 'drill, baby, drill!' comment about the Amazon
SAO PAULO (AP) — The head of Brazil's state-run gas and oil giant Petrobras was facing criticism on Friday after a video emerged of her saying 'Drill, baby, drill!' when speaking about controversial oil exploration near the mouth of the Amazon River. Magda Chambriard made the remarks Tuesday during the Offshore Technology Conference, in Houston. In a video obtained by the Brazilian newspaper Valor Economico and published Friday, Chambriard is seen addressing Clécio Luís, governor of the Amazonian state of Amapa, who was in the audience. 'We do believe we will have very good surprises once we have the (environmental) license to drill. So what one wants to say to Amapa is, 'Let's drill, baby, drill!'" Her comments prompted a round of applause, including from Luís. Petrobras did not immediately respond to an email request for comment. The company confirmed the authenticity of the video, according to Valor Economico. U.S. President Donald Trump has long used the phrase 'Drill, baby, drill!' in expressing support for increased oil exploration and production. 'The 'let's drill, baby' rhetoric may comfort industry leaders and short-sighted policymakers, but history will remember them as the ones who buried the 1.5 C goal," said Natalie Unterstell, president of Talanoa, a climate policy think tank, referring to the internationally adopted aim to keep warming under 1.5 C since pre-industrial times. Climate change is caused by the release of greenhouse gases like carbon dioxide. Oil, from exploration to its various uses, is a central driver of climate change. Chambriard was appointed by Brazil's leftist President Luiz Inácio Lula da Silva, whose environmental record in the Amazon is mixed. While he has curbed deforestation and championed the Amazonian city of Belem as the host of the U.N.'s COP30 climate summit in November, he also supports Petrobras's push to drill for offshore oil at the ecologically sensitive mouth of the Amazon River and other big projects that bring environmental impact to the world´s largest tropical forest. Exploratory offshore drilling near the Amazon, whose reserves are unknown, is expected to draw scrutiny during the COP30 summit. A central push of the annual climate talks has been to reduce the use of fossil fuels such as oil, gas and coal. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
