Petrobras (PETR3; PETR4) Aims for Brazil's Diesel Self-Sufficiency by 2030 with $6.4 Billion Investment

State-run oil giant Petrobras committed on Monday to making Brazil self-sufficient in diesel production by 2030, announcing 37 billion reais ($6.4 billion) in investments for São Paulo state through the end of the decade.

The announcement, made by Petrobras CEO Magda Chambriard, marks a significant shift in the company’s strategic ambition, moving from an original target of 85% domestic diesel coverage to a goal of 100%.

"We have committed to President Lula to be self-sufficient in diesel in this country by 2030," Chambriard told reporters during an event at the Replan refinery, Brazil’s largest processing unit.

ENERGY SECURITY PUSH

The push for self-sufficiency comes amid heightened global geopolitical tensions, particularly the conflict involving the United States and Iran, which has spiked concerns over global energy supply chains and price volatility.

"In this troubled moment of war... concerns regarding our country's energy security are exacerbated," Chambriard said. "Every country is discussing its energy security, and Brazil is no exception."

Petrobras currently supplies approximately 75% of Brazil’s diesel. The company plans to increase its refining capacity to bridge the remaining gap, reducing the country’s vulnerability to international price swings and import dependencies.

REFINING HUB

São Paulo state, which handles half of Petrobras’ total refining and 40% of Brazil’s fuel consumption, will be the heart of this expansion.

• Refining Investment: 17 billion reais will be allocated to refining projects.
• Replan Focus: 6 billion reais will go to the Replan refinery in Paulínia to expand its processing capacity by 63,000 barrels per day, specifically targeting high-value S10 diesel.
• Broader Network: An additional 11 billion reais will be invested across the Revap, RPBC, and Recap refineries.

The CEO noted that increased diesel production will naturally boost gasoline output, further improving domestic fuel availability.

OFFSHORE AND RENEWABLES

Beyond refining, Petrobras will invest 9 billion reais in offshore exploration and production in São Paulo’s pre-salt fields, including the new "Arã" area and upgrades to the Sapinhoá and Mexilhão fields. The investment package also includes:

• Port of Santos: 3.3 billion reais to expand the water terminal and storage capacity.
• Energy Transition: Projects for sustainable aviation fuel (SAF) using recycled cooking oil and a new photovoltaic plant for Replan’s internal consumption.

Petrobras estimates the investment cycle will generate approximately 38,000 direct and indirect jobs in São Paulo by 2030. "São Paulo is the largest consumer market in Brazil, and Petrobras cannot and does not intend to be absent from it," Chambriard concluded.