A giant in exploration and refining
Despite the unprecedented crisis in oil prices resulting from a decrease in global demand amidst the outbreak of the COVID-19 pandemic, Petrobras’ crude oil production reached record levels in 2020, nearing 2.3 million barrels per day. In 2021, production remained above 2.2 million daily barrels. The company’s production has been reignited since 2014 with the development of exploration of the pre-salt layer. Pre-salt is a series of geological formations established by the separation of what are currently the American and African continents, and its fuel reserves are normally located in deep-sea areas, under thick layers of salt. Petrobras accounts for more than 90 percent of the crude oil output in Brazil.The largest contribution to the company’s revenue, however, comes from the refining, transportation, and marketing segment. Despite negotiations to sell some of its assets in progress, as of 2021 Petrobras owned 11 out of the 17 existing oil refineries in Brazil, which correspond to over 80 percent of the national refining capacity. In addition to the two refineries sold in 2021, the company has committed to the sale of another five in the coming years.
Meanwhile, since July 2021, Petrobras no longer operates in the downstream sector. The company's fuel distribution used to be carried out through BR Distribuidora. The former subsidiary officially became a private company in mid-2019, with Petrobras' divestment process reaching completion two years later.
