Petrobras Announces 2024 Proved Reserves in Accordance with SEC Regulations
Petrobras, Brazil’s state-controlled oil and gas company, has disclosed its proved reserves of oil, condensate, and natural gas as per the regulations established by the U.S. Securities and Exchange Commission (SEC). As of December 31, 2024, the company’s total proved reserves are estimated at approximately 11.4 billion barrels of oil equivalent (boe). Of this total, oil and condensate account for 85%, while natural gas represents the remaining 15%.
This latest disclosure highlights Petrobras’ ongoing efforts to sustain and expand its reserves, ensuring long-term operational viability and continued contributions to the global energy sector. The company’s success in maintaining reserve growth aligns with its strategic objectives, which prioritize high-value assets and support a balanced energy transition that benefits both society and shareholders.
Reserve Growth and Replacement Rate
In 2024, Petrobras successfully added 1.3 billion boe to its reserves, achieving an impressive reserve replacement rate (IRR) of 154%. This figure reflects the company’s ability to replace more than the volume of hydrocarbons produced within the year, securing its future production capacity. The positive IRR underscores Petrobras’ focus on profitable assets and its strategic investments in exploration and development activities.
A crucial aspect of this reserve addition was the continued development of key offshore fields, particularly the Atapu and Sépia fields. Additionally, improved operational performance in significant fields such as Búzios, Itapu, Tupi, and Sépia within the Santos Basin further contributed to reserve growth. Notably, there were no significant adjustments due to variations in oil prices, indicating a stable and well-planned reserve estimation process.
Long-Term Production Sustainability
One of the key metrics used to assess an oil and gas company’s longevity is the reserves-to-production (R/P) ratio, which measures the estimated number of years that the current reserves can sustain production at the existing extraction rates. Petrobras’ R/P ratio for 2024 stands at 13.2 years. This figure demonstrates the company’s ability to maintain output over the medium term while continuing to replenish and expand its reserves through ongoing exploration and development activities.
To ensure sustained production in the years ahead, Petrobras remains committed to maximizing recovery factors across its fields. The company is focusing on enhanced oil recovery techniques, advanced reservoir management strategies, and continued investments in technology to optimize extraction efficiency. Exploring new frontiers and expanding the exploratory portfolio are also crucial elements of Petrobras’ strategy, enabling the company to secure long-term resource availability and adapt to evolving industry dynamics.
Independent Evaluation and Regulatory Compliance
Petrobras has a longstanding commitment to transparency and regulatory compliance in reporting its reserves. At least 90% of the company’s proved reserves, as defined by SEC regulations, undergo independent evaluation to ensure accuracy and reliability. Currently, DeGolyer and MacNaughton (D&M), a globally recognized petroleum consulting firm, is responsible for conducting this external assessment.
This rigorous evaluation process enhances investor confidence and provides stakeholders with a clear understanding of Petrobras’ resource base. By adhering to internationally accepted methodologies and independent verification, Petrobras reinforces its commitment to governance, operational integrity, and adherence to best practices in the energy sector.
Alternative Reserve Estimation Methods
In addition to SEC regulations, Petrobras also estimates its reserves based on the definitions set by Brazil’s National Agency of Petroleum, Natural Gas, and Biofuels (ANP) and the Society of Petroleum Engineers (SPE). As of December 31, 2024, Petrobras’ proved reserves under the ANP/SPE framework reached 11.7 billion boe. The slight variation between the ANP/SPE estimate and the SEC-compliant figure primarily arises from differences in economic assumptions and regulatory approaches.
One key distinction is that the ANP/SPE methodology allows for the inclusion of hydrocarbon volumes expected to be produced beyond the expiration of existing concession contracts, a provision not permitted under SEC guidelines. This flexibility in reserve classification provides Petrobras with an additional perspective on its long-term resource potential, complementing the more conservative SEC-based estimates.
Strategic Outlook and Future Plans
Looking ahead, Petrobras aims to sustain and enhance its reserve base through targeted investments in exploration and production (E&P). The company is actively working to optimize its asset portfolio, prioritizing projects with high economic viability and long-term value generation. Future investments will focus on:
- Maximizing Recovery from Existing Fields: Leveraging advanced extraction technologies, including digital reservoir management, enhanced oil recovery (EOR) techniques, and artificial intelligence-driven optimization.
- Expanding Exploration Efforts: Continuing to assess new offshore and deepwater prospects, particularly in pre-salt and post-salt formations, to discover additional hydrocarbon resources.
- Advancing Sustainable Energy Initiatives: Aligning exploration and production activities with Petrobras’ broader sustainability goals, including the integration of carbon capture and storage (CCS) solutions and minimizing environmental impact.
- Strengthening Partnerships and Collaborations: Engaging in strategic alliances with international energy companies, research institutions, and technology providers to enhance innovation and operational efficiency.
By integrating these strategic initiatives, Petrobras seeks to balance its role as a leading hydrocarbon producer with its commitment to a just and responsible energy transition. The company recognizes the evolving global energy landscape and is taking proactive steps to align its operations with emerging market trends and regulatory frameworks.
Petrobras’ 2024 reserves disclosure reaffirms the company’s strong resource base, operational resilience, and commitment to sustainable value creation. With 11.4 billion boe in SEC-compliant proved reserves and a robust replacement rate of 154%, Petrobras is well-positioned to maintain production and meet future energy demands.
The company’s continued focus on reserve optimization, exploration, and technological innovation ensures long-term resource security while supporting Brazil’s energy independence. By adhering to stringent regulatory standards and independent evaluations, Petrobras upholds its reputation as a reliable and responsible energy player in the global market.
As Petrobras moves forward, it remains dedicated to maximizing shareholder value, supporting Brazil’s economic growth, and contributing to the global energy transition. The company’s ability to sustain and grow its reserves will be instrumental in shaping its future trajectory and reinforcing its leadership in the oil and gas industry.
