Must-know: An overview of Petrobras’ segments and assets

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Petrobras’ segments and assets

Petrobras’ (PBR) business is organized into six business segments:

  1. Exploration and Production
  2. Refining, Transportation, and Marketing
  3. Distribution
  4. Gas and Power
  5. Biofuel
  6. International

Revenue Split

The Refining, Transportation, and Marketing segment was PBR’s largest segment by revenues in 2012 and 2013. It accounted for 44% in 2013. It was unchanged from last year. The Exploration and Production segment was the second highest revenue generator. It accounted for 27% in 2013.

BP Plc. (BP), Chevron Corporation (CVX), and China Petroleum and Chemical Corporation (SNP) are some of the other major integrated energy operators. CVX is a major U.S.-based integrated energy company. It’s a component of the Energy Select Sector ETF (XLE). Check out an overview of Chevron here.

Petrobras’ reserves and production

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As of December 30, 2013, Petrobras’ estimated total proved oil and natural gas reserves were ~13.1 billion barrels of oil equivalent (or boe). Approximately 60% of its proved reserves were developed. 40% were undeveloped. During 2013, PBR added 1,217.5 million boe of proved reserves to its portfolio.

Proved developed reserves are reserves where production is possible with existing wells or it requires minimum additional investment. Proved undeveloped reserves require additional capital investment to be developed.

On an oil equivalent basis, its crude oil and natural gas liquid (or NGL) production averaged approximately two million barrels per day (or bpd). Its natural gas production was ~418 thousand boe in June 2014.

PBR’s refining output was ~2.2 million barrels per day (or MMbbl/d) in from April–June 2014. The company supplied the market with 96 million cubic meters of natural gas per day during 2Q14.

Brazil is the main oil and gas production play for PBR. How much oil and gas reserves does PBR have in Brazil? What’s happening to its production? We’ll discuss this in the next part of the series.

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