Petrobras signs agreement with Mubadala for the development of biofuels

The Brazilian state oil company Petrobras announced this Monday that it signed an agreement with the Emirati fund Mubadala to study future businesses in the field of biofuels.

Petrobras said in a statement sent to the financial market that, based on the memorandum of understanding, it will evaluate its participation in an oil refining project to produce biofuels being carried out by Mubadala in the northeastern Brazilian state of Bahia.

The Abu Dhabi-based fund, which manages a portfolio of about $20 billion in its own and third-party investments, aims to boost production of “renewable diesel and sustainable aviation kerosene.”

“This project reinforces the role of Brazil as a strategic supplier of renewable fuels, capitalizing on the abundant natural resources present in the country”, Petrobras, controlled by the Brazilian state, but with shares traded in New York, São Paulo and Madrid, indicated in the note.

The Brazilian company stressed that the agreement is in line with its 2024-2028 strategic plan to prepare the company “for a more sustainable future, contributing to the success of the energy transition”.

“Petrobras reiterates its objective of reaching short-term goals and its ambition to neutralize emissions from the activities under its control until 2050”he pointed.

The oil company thus intends to diversify its source of income, while continuing to invest in oil exploration, with the aim of expanding its reserves in the coming years and raising its levels of crude oil production.

In this sense, it considers that it will continue producing oil for the next thirty or forty years, according to what Petrobras’ director of Exploration and Production, Joelson Falcão Mendes, said last month during an event on economic prospects.

Source: EFE