Page 16 - LatAmOil Week 31 2022

LatAmOil NEWS IN BRIEF LatAmOil

The advance our pre-salt oil production, increas-
ing the share of the oil and gas exploration and
production (E&P) segment in the company’s
results, together with portfolio management
and efforts to improve efficiency, makes these
results more positively exposed to favorable oil
price scenarios. The perceived improvement in
results, measured by the return on capital, is in
line with the risks involved in this business seg-
ment (E&P) and brings Petrobras’ profitability
- historically lower - closer to the average of its
peers.
Contributions to Society: Petrobras’ activ-
ities generated significant returns for Brazilian
society through dividends and the payment of
taxes. In the first half of 2022 alone, Petrobras
has already paid BRL179bn to the public coffers,
with BRL147bn in taxes and government partici-
pation and around BRL32bn* in dividends to the
Federal Government (paid until July). Therefore, Integrated Processing System (SIP) contract of 125-185 barrels per day (bpd) of oil. In addi-
the payments of dividends and taxes to the pub- signed with Petrogal Brasil started operating tion, intervention work is being made on older
lic administration, when added together, exceed today. wells at the Concession to enhance production.
the value of the profit reported in the period. The contract provides for Petrogal’s access to Trading overall in Argentina remains oper-
With the approval of a new installment of div- the gas processing units, owned by Petrobras and ationally profitable with President generating
idends announced today (July 28), the value of located in the states of Rio de Janeiro and São good free cash flow and exporting oil to the
the compensation for its majority shareholder - Paulo, connected to the Integrated Flow System extent possible and appropriate. Domestic oil
the Federal Government - will total BRL64.1bn* (SIE). prices continue to increase with oil prices being
this year. The implementation of the SIP allows compa- in our core Neuquen Basin area presently some
The proposed dividend is in line with the nies producing gas in Brazil to sell their volumes $67 per barrel and progressively increasing step
Shareholder Compensation Policy, which pro- directly to their customers. This movement is by step. The price invoiced by the Company
vides that, in the event of gross debt of less than part of a set of actions that enables the diversifi- for the export cargo sold in July was $105.8 per
$65bn, Petrobras may distribute to its sharehold- cation of agents, resulting in increased competi- barrel.
ers 60% of the difference between operating cash tion, in compliance with the commitments made Being a US Dollar based business insulates
flow and fixed asset and intangible (investments) by Petrobras to the Administrative Council for President to a material degree from the high
acquisitions. The Policy also provides for the Economic Defense (CADE) in 2019. inflation unfortunately suffered in Argentina
possibility of paying extraordinary dividends, The entry into operation of Petrogal’s con- at present and careful management of Peso bal-
provided that the company’s financial sustaina- tract is another milestone in the opening of the ances is being exercised to mitigate exposure.
bility is preserved. natural gas market in Brazil and demonstrates Non-Executive Director: Martin Urdapilleta,
In addition to the payment of taxes and div- the commitment of the partners and other Non-Executive Director, retired at the Annual
idends, investments of $3.1bn in the second agents involved to contribute to the development General Meeting of the Company held on July
quarter are also a highlight, 74% higher than in of a competitive and sustainable market in the 22, 2022, in accordance with Article 110 of the
Q1-2022, mainly due to the impact of the signa- country. In the future, other natural gas produc- Company’s Articles of Association.
ture bonus related to the Sépia and Atapu fields. ing companies may join the SIP. Owing to increased business commitments
These resources may allow responsible invest- Petrobras, August 1 2022 within South America for Trafigura, Martin
ments that generate greater economic develop- was unable to offer himself for re-election and
ment, as well as jobs and income for Brazilian accordingly has ceased to be a Director of the
citizens. PROJECTS & COMPANIES Company.
* The figure considers all payments made this Notwithstanding the above, Trafigura con-
year to the control group (Federal Government, President Energy tinues as a significant shareholder in President
BNDES and BNDESPar), including the payment and the parties continue to enjoy a strong and
made in May, referring to the 2021 results. announces trading and mutually beneficial trading relationship.
Petrobras, July 28 2022 Peter Levine, Chairman, commented: “We
corporate update would like to place on record our thanks to Mar-
tin for his services and professionalism towards
POLICY AIM-listed President Energy, an international President throughout his tenure. Our colleagues
energy company primarily focused in Argentina, in Buenos Aires continue unabated to work
Petrobras on natural gas with a diverse portfolio of operated onshore pro- closely with Martin and Trafigura in Argentina
ducing and exploration assets, has announced a on a day-to-day basis for which we remain grate-
flow and processing trading and corporate update. ful. Operations continue to progress in Salta and
Argentina: The three new wells at the Puesto the levels of realized prices achieved when we
Petrobras, following up on the release dis- Guardian Concession, Salta Province, Argentina export is particularly pleasing.”
closed on September 30, 2020, informs that the are all on stream and each producing in the range President Energy, July 28 2022

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