“Petrobras is again set to become one of world’s largest energy companies,” says Lula at Magda Chambriard's investiture

"Petrobras carries the DNA of the Brazilian people. It resists and insists. And it is once again positioning itself as one of the world’s largest energy companies. Even if oil is no longer the reason for Petrobras' existence, it will remain an energy company. It will refine our biodiesel. It can generate green hydrogen. It can produce a variety of other products and now it can help the country cope with Russia's war against Ukraine, helping us resume the fertilizer factory that we so desperately need to recover this country".

President Luiz Inácio Lula da Silva delivered this message at Magda Chambriard's investiture as Petrobras' new CEO on Wednesday, June 19, in Rio de Janeiro. He emphasized the company's critical role in Brazil and in the unavoidable energy transition the world must undertake to address climate change.

The new Petrobras CEO, the second woman to chair the company, is competent and has all the credentials to deal with the company's challenges in this global context of climate crisis and urgent energy transition. I wish President Magda Chambriard a good job and a lot of success. Petrobras carries the DNA of the Brazilian people. It resists and insists. And here we are again to reaffirm Petrobras' fundamental role for the country's growth and for our sovereignty.pic.twitter.com/jvY7rVdM25

— Lula (@LulaOficial) June 19, 2024

Lula appeared to be emotionally moved as he addressed the crowd of state officials and employees, praising everyone who worked for Petrobras over 71 years and helped shape the company's history.

"We are here to reaffirm Petrobras' critical role in this country's development and sovereignty. A company that generates oil, gas, and energy while also investing in research, innovation and the energy transition. A company that invests in culture. A company that generates knowledge and innovation. You cannot build a company the size of Petrobras or the largest Research Center in Latin America without everyone contributing with their hands and minds. The workforce and intellectual capital of you, oilmen and women, may be the top value of Brazil's largest public company, whose market capitalization reached an all-time high of BRL 569 billion in February," said President Lula.

RESPECT – Magda Chambriard, a career employee at Petrobras with a Master's Degree in chemical engineering, spoke about how she plans to manage the company. Before her remarks, President Lula presented her with the Petrobras CEO identification badge. "President Lula tasked me with moving Petrobras forward, as it drives the country's GDP upwards. Our goal is managing Petrobras with respect for Brazilian society," said Magda.

"Many people ask me what we plan to do at Petrobras. And our plan is documented in our strategic planning. It involves the potential to generate hundreds of thousands of direct and indirect jobs, as well as significant resources for the Federal Government, states and municipalities and government holdings. We will ensure governance and strong business results, with the profitability and efficiency that the market and Brazil expect of us," continued the new CEO.

President Lula and Chambriard were joined by ministers Fernando Haddad (Finance), Rui Costa (Civil House), Alexandre Silveira (Mines and Energy), Luciana Santos (Science, Technology and Innovations), Margareth Menezes (Culture), Márcio Macêdo (General Secretariat of the Presidency), and Laércio Portela (acting minister of the Communications Secretariat). The mayor of Rio de Janeiro, Eduardo Paes; the governor of Rio Grande do Norte, Fátima Bezerra; the president of development bank BNDES, Aloizio Mercadante; the president of Caixa Bank, Carlos Vieira; the president of Banco do Brasil bank, Tarciana Medeiros; members of parliament; and First Lady Janja Lula da Silva also attended.

ENERGY TRANSITION AND FERTILIZERS – Chambriard spoke about Petrobras' role in the energy transition process. "Our strategy sets out the company's path as a Brazilian energy transition leader. A fair and inclusive energy transition. During this transition, we will strengthen our oil and gas assets as well as our refining plants through consistent but timely investments, resulting in a gradual reduction in carbon emissions. We have the ambition of reaching zero emissions, net zero by 2050," she said. Petrobras' new CEO also made it clear that the company will invest heavily in the fertilizer sector. "It is very important to say that there is a good reason why we are returning to the fertilizer sector. Fertilizers are a good opportunity to significantly expand the gas market. Gas is our product. Natural gas is the most important input in determining fertilizer prices. We are also going to strengthen our operations in petrochemicals and lubricants, which are non-fuel products that enhance our portfolio and contribute to reducing emissions," she said.

ECOLOGICAL TRANSFORMATION – Fernando Haddad highlighted the importance of the state-owned company as a source of wealth for the country and said that Petrobras should take steps to promote national ecologic transformation.

"From the Treasury's point of view, Petrobras is always seen as a generator of dividends and royalties. And Magda [Chambriard]'s speech speaks volumes to our desire to make Brazil grow, discover new potential for energy exploration, and promote the ecological transformation that the planet so desperately needs, which is so necessary," said the Finance minister.

NEW FRONTIERS – The CEO of Petrobras also addressed the issue of exploring new oil frontiers of the country, beyond the pre-salt. "We must never forget that Brazil's oil and gas reserves are finite, so our energy security during the transition must be replaced. Along these lines, we must develop our exploration frontiers, such as those on the equatorial margin and in the south of Brazil."

Minister Alexandre Silveira reiterated the opinion. "We need to show more pride in our beloved Petrobras, which is one of the greatest assets of all Brazilians. Let us build, with good politics, with dialog with Ibama [the Brazilian Institute of the Environment and Renewable Natural Resources/Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis], technically, an environmentally safe path to give the Brazilian people the right to know their riches. We must know the potential of this, which may be our last oil and gas frontier before the energy transition is consolidated. Because nobody knows for sure how long, unfortunately, we will still need fossil fuels as an energy source."

NVC – Before the investiture ceremony, President Lula visited the company's Visualization and Collaboration Center (NVC), a digital laboratory that models studies are carried out using digital models of platforms (digital twins), oil reservoirs, fluid dynamics, outcrops, rocks, etc. The laboratory has screens and 3D glasses, as well as a structure for presentations in a mini-auditorium format. There, Lula watched a demonstration of the Marlim Field in 3D, with its geological features.

OTC AWARD – During their visit to the NVC, Lula and his entourage saw a presentation about the latest Offshore Technology Conference (OTC) award, the world's largest deepwater oil and gas industry conference, which rewarded the innovations implemented by Petrobras in the Campos Basin, especially in the Marlim Field. During the OTC, held in May in Houston, Petrobras received the highest technical award from the OTC, the Distinguished Achievement Award, in the "Companies, Organizations and Institutions" category. This was the fifth time that Petrobras has been awarded by the OTC.