Petrobras Business Model Canvas

As a state-controlled entity, Petrobras's key partnerships include crucial relationships with Brazilian government agencies and regulators. These collaborations are essential for securing necessary operating licenses and ensuring compliance with stringent environmental and safety standards. For example, the National Agency of Petroleum, Natural Gas and Biofuels (ANP) plays a vital role in regulating the sector.

These governmental partnerships are fundamental for Petrobras to align its strategic objectives with national energy policies and development plans. This alignment ensures that the company's activities contribute to broader economic and social goals. The ongoing dialogue with these bodies is critical for navigating the evolving regulatory landscape.

Recent legislative developments underscore the significance of these partnerships. For instance, Law 15,075/2024, which addresses local content surpluses and the extension of Production Sharing Agreements, demonstrates the direct impact of governmental decisions on Petrobras's operational framework and future investments. Such laws often stem from close consultation between the company and regulatory bodies.

• Regulatory Compliance: Adherence to environmental, safety, and operational standards set by agencies like IBAMA and ANP.
• Policy Alignment: Ensuring Petrobras's strategy supports national energy security and economic development goals.
• Licensing and Approvals: Obtaining permits for exploration, production, and infrastructure projects.
• Legislative Influence: Engaging with government on new regulations, such as those impacting local content or production sharing agreements, as seen with Law 15,075/2024.

Petrobras recognizes that strong relationships with local communities and socio-environmental organizations are fundamental to its social license to operate. These partnerships are crucial for effectively managing the company's environmental impacts and fostering positive social outcomes.

The company actively invests in voluntary socio-environmental projects, focusing on areas such as biodiversity conservation and sustainable economic development. These initiatives are designed to create shared value and address the specific needs of the regions where Petrobras operates. For instance, the 2024 Sustainability Report highlights Petrobras' dedication to people and the environment, underscoring its commitment to responsible operations.

A key example of this commitment is the ProFloresta+ program, which aims to restore forests in the Amazon region. Such programs demonstrate Petrobras' proactive approach to environmental stewardship and its engagement with organizations dedicated to conservation and sustainable practices.

• Community Engagement: Petrobras collaborates with local communities to ensure its operations align with social expectations and to mitigate potential negative impacts.
• Environmental Stewardship: Investments in biodiversity conservation and forest restoration, such as the ProFloresta+ program, showcase a commitment to environmental protection.
• Sustainable Development: Programs focused on economic development and education in local areas aim to create long-term benefits for the communities.
• Social License: Maintaining open dialogue and partnerships with socio-environmental organizations is vital for securing and maintaining Petrobras' social license to operate.

Petrobras operates an extensive network of refineries and natural gas processing plants, crucial for converting raw hydrocarbons into valuable marketable products. This integrated infrastructure ensures a consistent supply of fuels, lubricants, and petrochemical feedstocks to both domestic and international customers. In 2024, Petrobras continued its strategic investments in upgrading and expanding these facilities, aiming to boost processing capacity and enhance the quality of its refined products, aligning with evolving market demands and environmental standards.

These refining and processing facilities represent a core physical asset for Petrobras, enabling the company to capture value across the entire oil and gas chain. The modernization efforts are focused on improving energy efficiency and reducing the environmental footprint of operations. For instance, investments are directed towards advanced refining technologies that can process heavier crude oils and produce cleaner fuels, such as ultra-low sulfur diesel.

• Integrated Operations: Petrobras’s refineries and processing plants are strategically located and interconnected, optimizing logistics and operational synergies.
• Product Diversification: These facilities produce a wide array of products, including gasoline, diesel, jet fuel, LPG, lubricants, and various petrochemicals.
• Capacity and Efficiency: Ongoing investments in 2024 aim to increase the overall processing capacity and improve the energy efficiency of the company's refining assets.
• Market Responsiveness: The company’s ability to adapt its processing capabilities allows it to respond effectively to shifts in demand for different fuel types and petrochemical products.

Petrobras leverages its robust brand and significant market presence in Brazil, a key resource within its business model. This allows it to command a substantial share in the distribution of oil products, natural gas, and biofuels across the nation.

The company's established history and integrated operational structure foster deep trust and recognition among both individual consumers and large industrial clients. This strong brand equity directly translates into customer loyalty and a competitive advantage.

• Dominant Market Share: Petrobras holds a commanding position in Brazil's energy market, particularly in refined products and natural gas distribution.
• Brand Recognition: Its long-standing presence and consistent operations have cultivated widespread brand awareness and trust.
• Integrated Operations: From exploration to distribution, Petrobras's integrated model reinforces its market strength and reliability.
• Customer Loyalty: The combination of brand strength and reliable supply fosters significant customer loyalty across all segments.

Petrobras prioritizes robust public relations and transparent corporate communications to foster trust with its diverse stakeholders. This commitment is crucial due to its status as a publicly owned entity with substantial societal influence.

The company regularly disseminates information regarding its financial performance, sustainability efforts, and strategic direction. This includes detailed annual and sustainability reports, which serve as primary channels for engaging with investors, media, and the general public.

• Financial Transparency: Petrobras aims to provide clear and accessible financial reporting, ensuring stakeholders have a comprehensive understanding of its economic health and operational results.
• Sustainability Reporting: The company actively communicates its progress and commitments in environmental, social, and governance (ESG) areas, highlighting its dedication to sustainable practices. For instance, in 2023, Petrobras reported a reduction in its Scope 1 and 2 greenhouse gas emissions intensity compared to 2022.
• Strategic Communications: Regular updates on strategic plans, such as investments in new energy sources and operational efficiency improvements, are shared to maintain stakeholder alignment and confidence.

Petrobras actively engages with local communities through a variety of social programs and initiatives. These efforts are designed to address socio-environmental impacts and foster positive relationships, thereby strengthening the company's social license to operate.

These programs often concentrate on key areas crucial for sustainable development, including education, environmental protection, and the promotion of sustainable economic activities. For instance, in 2023, Petrobras invested R$ 1.1 billion in social, environmental, and governance (ESG) initiatives, demonstrating a tangible commitment to these principles.

• Community Investment: Petrobras's social programs aim to create shared value, contributing to the well-being of communities where it operates.
• Socio-Environmental Focus: Initiatives prioritize education, environmental conservation, and economic development to mitigate impacts and foster growth.
• Strengthening Social License: By addressing community needs and environmental concerns, Petrobras builds trust and maintains its operational legitimacy.
• 2023 ESG Investment: The company's significant investment in ESG in 2023 underscores its dedication to these community-focused relationships.

Petrobras serves a crucial role in the global energy landscape by exporting crude oil and a select range of refined products. This segment is comprised of major international refiners who require consistent crude oil supplies for their operations, as well as sophisticated trading houses that manage the global flow of energy commodities. Other energy companies, looking to secure feedstock or diversify their supply chains, also form a significant part of this buyer base.

In 2024, Petrobras continued to be a significant supplier of crude oil to international markets. For instance, the company's pre-salt production, a key export driver, remained robust. In the first quarter of 2024, Petrobras' total oil and gas production reached an average of 2.8 million barrels of oil equivalent per day (boed), with a substantial portion designated for export.

• Global Refiners: Companies operating large-scale refineries that process crude oil into gasoline, diesel, jet fuel, and other petroleum products.
• Trading Houses: Intermediaries that buy, sell, and transport oil and gas globally, managing price risks and logistics.
• Energy Companies: Other oil and gas producers or distributors that may purchase Petrobras' crude for their own refining or to meet contractual obligations.
• Market Focus: Key export destinations historically include North America, Europe, and Asia, reflecting the global demand for Brazil's high-quality crude.

Petrobras is increasingly engaging with biofuel consumers, such as the transportation sector seeking sustainable fuel alternatives and industrial clients looking to reduce their carbon footprint. This segment is crucial as demand for lower-emission fuels grows. For instance, Brazil's sugarcane ethanol production reached an estimated 35.7 billion liters in the 2023-2024 harvest season, highlighting a significant market for Petrobras's biofuel offerings.

Furthermore, companies actively involved in biofuel development, from feedstock cultivation to advanced processing technologies, are emerging as key partners and customers for Petrobras. These developers are vital for expanding the supply chain and innovation in biofuels like biodiesel and biomethane. Petrobras's strategy includes not only supplying these fuels but also collaborating on new production methods and market penetration strategies.

• Biofuel Consumers: Transportation sector (trucking, aviation), industrial users seeking to decarbonize operations.
• Biofuel Developers: Companies involved in ethanol, biodiesel, and biomethane production and technology.
• Market Growth: Brazil's ethanol production highlights the scale of the biofuel market.
• Strategic Importance: These segments are key to Petrobras's low-carbon transition and market expansion.

Petrobras generates revenue not only from oil and gas but also from petrochemical products and biofuels. This diversification is a key part of its strategy to adapt to evolving energy markets.

The company is actively re-entering the fertilizer market, aiming to bolster this segment. Furthermore, Petrobras is committed to significantly increasing its biofuel production capacity, aligning with global energy transition trends and creating new income streams.

• Petrochemical Sales: Petrobras sells a range of petrochemical products derived from its refining operations, contributing to its overall revenue.
• Biofuel Expansion: The company is investing in expanding its biofuel production, particularly ethanol and biodiesel, to meet growing demand and sustainability targets. For instance, in 2024, Petrobras announced plans to increase its biofuel output significantly.
• Fertilizer Re-entry: Petrobras is strategically re-entering the fertilizer market, with initial investments focusing on key production facilities to capture market share and diversify revenue.

Petrobras generates revenue through its involvement in numerous joint ventures and strategic partnerships. This income stream encompasses its proportional share of profits from co-owned and operated projects, as well as dividends or service fees derived from equity investments in other companies. These collaborative efforts are instrumental in distributing project risks and amplifying Petrobras's overall revenue-generating capacity.

• Joint Venture Profits: Petrobras's share of profits from projects like the pre-salt exploration and production, where it partners with companies such as TotalEnergies and CNPC. For instance, in the fiscal year 2023, Petrobras reported significant operational results from its joint ventures, contributing positively to its overall financial performance.
• Partnership Dividends and Fees: Income received from equity stakes in entities like Braskem, where Petrobras holds a substantial ownership. These dividends, declared based on Braskem's profitability, represent a direct financial benefit to Petrobras.
• Risk Sharing and Enhanced Revenue: Collaborations allow Petrobras to access new technologies, markets, and capital, thereby reducing individual risk exposure and increasing the potential for larger revenue streams than it could achieve alone.