PBR

Consortium Formation: Shell and Petrobras have increased their participation in Brazil's Atapu and Mero offshore pre-salt oil projects after being the only bidders in a public auction for stakes in these fields.

Stake Acquisition: The consortium acquired 26.76% of Atapu Open Acreage and 20% of Mero Open Acreage, raising Shell's interest in Atapu from 16.663% to 16.917% and in Mero from 19.3% to 20%.

Financial Commitment: Shell and Petrobras agreed to pay approximately 8.79 billion reais (~$1.65 billion) for the stakes in Atapu and Mero, which are located in the productive Santos Basin.

Existing Partnership: The two companies already have a partnership in both fields, highlighting their ongoing collaboration in one of the world's most significant offshore hydrocarbon regions.

Investment Plan Review: Petrobras plans to review some of the 15 wells in the Equatorial Margin region due to anticipated weak crude oil prices, as stated by CEO Magda Chambriard.

Capital Expenditure Cuts: The company has reduced its five-year investment plan for 2025-29 by approximately 2% to $109 billion, cutting investments in the Equatorial Margin by $500 million to $2.5 billion.

Production Goals: Despite the cuts, Petrobras aims to maintain oil production levels between 2.6 million and 2.7 million barrels per day until 2034, with an increase expected around 2027.

Impact on Dividends: The reduction in capital expenditures is likely to affect extraordinary dividends to shareholders, with CFO Fernando Melgarejo indicating a low chance of additional cash distributions in the near future.