Petrobras Highlights on production and sales in 2Q21

In 2Q21, we continued to operate safely and had a solid operating performance, despite the persistence of the pandemic scenario. The average production of oil, NGL and natural gas reached 2.80 MMboed, 1.1% above 1Q21, due to the continued ramp-up of platforms P-68 (Berbigão and Sururu fields) and P-70 (Atapu field). Production in the pre-salt area totaled 1.96 MMboed in the quarter, representing 70% of Petrobras’ total production, 1 percentage point above 1Q21 and 4 percentage points above 2Q20.

Because of the pandemic, we kept the headcount reduced on our platforms, with the adoption of measures such as pre-shipment isolation and extensive testing, in addition to changing operational routines in order to preserve the health of our employees and reduce risks of contamination and impacts on production.

We highlight the following points in our operating performance:

  • In June, we started the integrated operation of Routes 1 and 2 of the Santos Basin gas flow, close to the FPSO Cidade de Angra dos Reis, as a result of the beginning of the Integrated Gas Flow System contracts, allowing more flexibility due to better distribution of the production units connected to the system and boosting gas supply;
  • In the same month, we started the gas flow from P-76 in Búzios, contributing to the exploitation of the field’s potential and enabling better reservoir management and increased value generation;
  • On July 5th, FPSO Carioca completed the journey to its final location, in the Sépia field, with subsequent start of mooring activities. The unit’s first oil is expected in August 2021;
  • P-68 and P-70 units continued to ramp-up and delivered high operational efficiency rates in the quarter. On July 18th, P-70 reached the maximum allowed production capacity, 161 kbpd. Thus, despite the pandemic, the ramp-up was concluded in less than 13 months, close to our average of 11 months in the last three years;

On June 11th, we signed with Pré-sal Petróleo S.A.  (PPSA) and the partners CNODC Brasil Petróleo e Gás (CNODC) and CNOOC Petroleum Brasil (CNOOC) the Búzios Coparticipation Agreement. When the agreement comes into effect, Petrobras will hold 92.666%, CNODC 3.667%, and CNOOC 3.667% of the Búzios reservoir. The estimates of participation and compensation presented are based on the effective date of the agreement, September 1st, 2021, and as soon as the date is confirmed with ANP’s approval, the necessary adjustments will be made according to the cumulative production and investments made up to that date, with consequent financial compensation to Petrobras.

Carrying on our active portfolio management, we signed in 2Q21 the contract for the sale of our entire participation in eight onshore and shallow water fields, located in the Alagoas Terra, Alagoas Mar and Sergipe Terra Basins. The contract for the sale of seven of these concessions, in the so-called Alagoas Cluster, was signed with the company Petromais Global Exploração e Produção S.A., while the contract for the cession of our 50% stake in the Rabo Branco onshore field was signed with the company Petrom Produção de Petróleo & Gás Ltda. We also concluded the sale to the company Centro-Oeste Óleo e Gás Ltda of our non-operating 50% stake in Do-Re-Mi (Sergipe-Alagoas Basin), which has not recorded production in recent years. Additionally, in July, we signed a contract for the sale of Petrobras’ participation in the Papa-Terra field (62.5%), located in the Campos Basin, to the company 3R Petroleum Offshore S.A., and concluded the sale of eight onshore exploration and production fields, jointly denominated Polo Rio Ventura, located in the state of Bahia, to the company 3R Rio Ventura S.A., a wholly owned subsidiary of 3R Petroleum Óleo e Gás S.A..

Oil products sales increased in 2Q21, reaching volumes of 1,759 kbpd in the domestic market, mainly due to the rise in diesel and gasoline sales. Gasoline sales grew throughout 2Q21 and reached 435 kbpd in June 2021. Oil processing and oil products output were lower compared to 1Q21, due to the concentration of mandatory scheduled refineries stoppages in 2Q21, but the production level of higher value-added fuels, diesel and gasoline, was kept up.

We are sustainably increasing the portion of pre-salt oil used in our refineries, in line with the demands and opportunities of the domestic and international markets. The processing of pre-salt oil remained high in 2Q21, representing 54.7% of the processed feedstock in 1H21, an increase of 5.3 percentage points over last year and a new record of 898 kbpd. Pre-salt oils have a high yield of higher value-added middle destillates and have low sulfur content, contributing to a more sustainable refining activity and to the production of oil products with this characteristic, such as S-10 diesel and bunker.

We increased oil exports in 2Q21 and expanded our customer base by adding four new refiners to the Búzios portfolio and four new refiners to Atapu. It is worth mentioning that we exploited the arbitrage that has favored oil sales in Western markets by diversifying the destination of oil exports, resulting in increased oil sales to Europe, Latin America, United States, and also India, with a consequent reduction in exports to China.

In line with the appreciation of low-sulfur fuel oil worldwide due to International Maritime Organization (IMO) regulations, Petrobras started blending oil with fuel oil in search of the best profitability for its product portfolio. In 2Q21, the first Jubarte oil cargo traded as a component of low-sulfur fuel oil was carried out, overcoming operational challenges and showing positive economic results.

In May 2021 we set a new record for S-10 diesel sales, with the sale of 450 kbpd, 3.0% more than the previous record, set in April 2021.

We set a record in transshipment operations at the Angra dos Reis terminal in May, exporting 24 cargoes of oil within the month. We also set a record for total exports from the system, with 25 cargoes in May.

On June 28th, we reached an all-time record in the supply of regasified liquefied natural gas (LNG) in the country, with an instantaneous flow of 42 million m³/day, reaching, on the day, the volume of 109 million m³/day in the total natural gas supply.

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