Q3 2024 Petroleo Brasileiro SA Petrobras Earnings Call

November 8, 2024

Operator: To discuss Q3 results. This will be in Portuguese with simultaneous translation into English. The links are in our IR website. All participants will be in a listen-only mode. We'll have a Q&A session. Submit your question to petroinvest@petrobras.com.br. Joining us, Clarice Coppetti, Director for Corporate Affairs, Claudio Schlosser, Logistics, Sales and Markets Director, Fernando Melgarejo, IR Director, Mário Spinelli, Governance Director, Mauricio Tolmasquim, Director for Energy Transition and Sustainability, Renata Baruzzi, Engineering Technology Innovation Director, Sylvia dos Anjos, Exploration and Production Director, and William França da Silva, Product Director, and other company executives. Fernando Melgarejo, our CFO, will take over now. Good afternoon. Thank you for attending this webcast. These are the highlights for Q3 2024. We will be available to answer questions you may have at the end of this presentation. On to slide 3. These are our operational highlights. Starting with exploration and production.

Eduardo De Nardi Ros: To discuss Q3 results. This will be in Portuguese with simultaneous translation into English. The links are in our IR website. All participants will be in a listen-only mode. We'll have a Q&A session. Submit your question to petroinvest@petrobras.com.br. Joining us, Clarice Coppetti, Director for Corporate Affairs, Claudio Schlosser, Logistics, Sales and Markets Director, Fernando Melgarejo, IR Director, Mário Spinelli, Governance Director, Mauricio Tolmasquim, Director for Energy Transition and Sustainability, Renata Baruzzi, Engineering Technology Innovation Director, Sylvia dos Anjos, Exploration and Production Director, and William França da Silva, Product Director, and other company executives. Fernando Melgarejo, our CFO, will take over now.

Q3 results.

This will be in Portuguese with simultaneous translation into English.

The links are in our IR website.

We will all be all participants will be in a listen only mode.

We will have a Q&A session.

Submit your question to Petro invest at Petrobras Dot Com <unk> P. R.

Genius Glory sea capacity.

Director for corporate affairs polished LASA.

Logistics sales and market director.

Fernando Garcia: Fernando Garcia IR director.

Fernando Garcia: Director Mario Spinelli.

Fernando Garcia: Governments director Maurice Shoe Domo scheme.

Fernando Garcia: Director for energy transition and sustainability Renata boroughs Z Engineering technology innovation director, Suva disastrous exploration and production director and William printer.

Fernando Garcia: Product director.

Fernando Garcia: And other company executives.

Fernando Garcia: Fernando Melgar Asia.

Fernando Garcia: C O F.

Fernando Garcia: CFO will take over now.

Fernando Garcia: Good afternoon. Thank you for attending this webcast.

Fernando Melgarejo: Good afternoon. Thank you for attending this webcast. These are the highlights for Q3 2024. We will be available to answer questions you may have at the end of this presentation. On to slide 3. These are our operational highlights. Starting with exploration and production.

Fernando Garcia: These are the highlights for Q3 'twenty four.

Fernando Garcia: We will be available to answer questions. You may have at the end of this presentation.

Fernando Garcia: On to slide three.

Fernando Garcia: These are our operational highlights.

Starting with exploration and production we have come a long way back in October we start operation of two F gas F. P. S O Mariya keep Terry and Joe Bart seafood and.

Operator: We have come a long way. Back in October, we start operation of two FPSO, Maria Quitéria in Jubarte field, and Marechal Duque de Caxias in the Mero field in the Santos Basin. We've also received Almirante Tamandaré. It's now in Brazilian waters and will be operating in the Búzios field. This is going to be the first high-capacity unit. Capacity of up to 225,000 barrels and 12 million cubic feet a day. The plan is to start operations next year, but we may anticipate that. These are very important deliveries for our strategic plan. In the case of Maria Quitéria, we've anticipated that operation that was scheduled for 25. This effort results in more revenue as these assets generate or reach their full capacity, which is over 500,000 barrels a day. You can also see other important highlights.

Fernando Melgarejo: We have come a long way. Back in October, we start operation of two FPSO, Maria Quitéria in Jubarte field, and Marechal Duque de Caxias in the Mero field in the Santos Basin. We've also received Almirante Tamandaré. It's now in Brazilian waters and will be operating in the Búzios field. This is going to be the first high-capacity unit. Capacity of up to 225,000 barrels and 12 million cubic feet a day. The plan is to start operations next year, but we may anticipate that. These are very important deliveries for our strategic plan. In the case of Maria Quitéria, we've anticipated that operation that was scheduled for 25. This effort results in more revenue as these assets generate or reach their full capacity, which is over 500,000 barrels a day. You can also see other important highlights.

Fernando Garcia: And Marshall Marshall Luketic as she is in the marrow appeared in the centers Basin and we've also received Almirante Temodar a it's now in Brazilian waters and will be operated and the bushes speed. This is going to be the hub burst I capacity unit.

Fernando Garcia: Capacity of up to 225000 barrels and 12 million of cubic feet.

Fernando Garcia: A day.

Fernando Garcia: The plan is to start operations next week next year that we may anticipate that.

Fernando Garcia: These are very important deliveries for our strategic plan in the case of Maria Kit area, we've anticipated that operation that was scheduled for 25.

Fernando Garcia: This effort.

Results in more revenue.

As these assets generate or reach their full capacity, which is over 500000 barrels a day.

You can also see other important highlights.

Fernando Garcia: Our record.

Fernando Garcia: Production into be reaching 3 billion barrels.

Operator: Our record production in Tupi, reaching 3 billion barrels. In Merluza, the Sepetiba FPSO reached its peak production in less than 8 months, also contributing to the production of the quarter. In explorations, we have discovered a field in Colombia and in South Africa. We have a minor stake in the Orange Basin. On to the next slide, operational highlights. High level of use of our 95% for the quarter. In September, we reached 97%. We did this maintaining high-value derivatives or byproducts, rather. We've had the best historical level of the greenhouse gas emissions in our refining park. We've increased sales of byproducts in the Midwest, and also a partnership with Vale to test low carbon products, including diesel R with 5% renewable content. We have the natural gas production unit in Rio. We're ready to start commercial operations soon.

Fernando Melgarejo: Our record production in Tupi, reaching 3 billion barrels. In Merluza, the Sepetiba FPSO reached its peak production in less than 8 months, also contributing to the production of the quarter. In explorations, we have discovered a field in Colombia and in South Africa. We have a minor stake in the Orange Basin. On to the next slide, operational highlights. High level of use of our 95% for the quarter. In September, we reached 97%. We did this maintaining high-value derivatives or byproducts, rather. We've had the best historical level of the greenhouse gas emissions in our refining park. We've increased sales of byproducts in the Midwest, and also a partnership with Vale to test low carbon products, including diesel R with 5% renewable content. We have the natural gas production unit in Rio. We're ready to start commercial operations soon.

Fernando Garcia: In Merrell the separate T by F. P. S O reached its peak production in less than eight months.

Fernando Garcia: Also contributing to the production of the quarter.

Fernando Garcia: In exploration, we have discovered Ah.

Field in Colombia, and in South Africa, we have a minus taking the orange basing.

Fernando Garcia: Onto the next slide.

Operational highlights high level of use of our 95% for the quarter.

Fernando Garcia: In September we reached 97%.

Fernando Garcia: We did this maintaining high value.

Fernando Garcia: Service.

Fernando Garcia: Or byproduct, rather we've had the best.

Fernando Garcia: History level of the greenhouse.

Fernando Garcia: In fact emissions in our refining park.

Fernando Garcia: We've increased sales for.

Byproducts in the Midwest.

Fernando Garcia: And also our partnership with Bali to test low carbon products, including diesel or with 5% renewable content.

Fernando Garcia: We have the natural gas production units in Rio.

Fernando Garcia: We're ready to start commercial operations.

Fernando Garcia: Soon very.

Fernando Garcia: Very strategic to Petrobras because it will increase the offer of natural gas and Brazil, we're starting at 50% capacity and by year's end, we'll have two modules in operations, reaching a 'twenty, one cubic million or 21 million cubic meters.

Operator: It's very strategic to Petrobras because it will increase the offer of natural gas in Brazil. We're starting at 50% capacity, and by year's end, we'll have two modules in operations, reaching 21 million cubic meters of gas per day. We're back to the top 10 ranking of companies we would like to work for after 4 years of being outside of that list. These results are very important results for those companies that want to attract and retain talent. This is an indication that we're heading the right way. On to financial results on slide 5. We haven't had any non-recurring items impacts in this quarter, unlike the previous quarter, as you all remember. Recurring EBITDA was $11.6 billion. Recurring net income was $5.9 billion.

Fernando Melgarejo: It's very strategic to Petrobras because it will increase the offer of natural gas in Brazil. We're starting at 50% capacity, and by year's end, we'll have two modules in operations, reaching 21 million cubic meters of gas per day. We're back to the top 10 ranking of companies we would like to work for after 4 years of being outside of that list. These results are very important results for those companies that want to attract and retain talent. This is an indication that we're heading the right way. On to financial results on slide 5. We haven't had any non-recurring items impacts in this quarter, unlike the previous quarter, as you all remember. Recurring EBITDA was $11.6 billion. Recurring net income was $5.9 billion.

Fernando Garcia: Of gas per day.

Fernando Garcia: And we're back to the top 10 ranking of companies, we would like to work for.

Fernando Garcia: After four years of being outside of that list.

These results are very important results for those companies that want to attract and retain talent. This is an indication that we're heading the right way.

Fernando Garcia: Onto financial results on slide five.

We haven't had any nonrecurring items impacts in this quarter.

Unlike the previous quarter as you all remember.

Fernando Garcia: Recurring EBITDA was $11.6 billion recurring net income was $5 9 billion.

Fernando Garcia: We've maintained generating cash $11 3, billion% to 24% increase quarter on quarter free cash flow was $6 9 billion.

Operator: We've maintained generating cash, BRL 11.3 billion, a 24% increase quarter-over-quarter. Free cash flow was BRL 6.9 billion. Gross debt is under control at BRL 59.1 billion within the range we established in our strategic plan. I'll be giving you more detail about these figures, and you'll see that financial debt is at its lowest level since 2008. We paid out BRL 64.4 billion in taxes, and we've approved dividends and our own capital interest at BRL 17.1 billion. These numbers show that we've reached consistent results despite the dropping prices of Brent oil. This is the FX scenario. Brent prices was down when compared to the previous quarter, just like the crack spread in diesel. Margins were reduced. However, we managed to offset by selling more by-products.

Fernando Melgarejo: We've maintained generating cash, BRL 11.3 billion, a 24% increase quarter-over-quarter. Free cash flow was BRL 6.9 billion. Gross debt is under control at BRL 59.1 billion within the range we established in our strategic plan. I'll be giving you more detail about these figures, and you'll see that financial debt is at its lowest level since 2008. We paid out BRL 64.4 billion in taxes, and we've approved dividends and our own capital interest at BRL 17.1 billion. These numbers show that we've reached consistent results despite the dropping prices of Brent oil. This is the FX scenario. Brent prices was down when compared to the previous quarter, just like the crack spread in diesel. Margins were reduced. However, we managed to offset by selling more by-products.

Gross debt is under control at 59.1 billion within the range, we established in our strategic plan I'll be giving you more detail about these figures and you'll see that financial debt is is that a slowest level since 2008.

Fernando Garcia: We paid out 64.4 billion in Texas and we've approved.

Fernando Garcia: Dividends and our own capital interest at $17 1 billion.

Fernando Garcia: So these numbers show that we've reached consistent results.

Fernando Garcia: Despite the.

Fernando Garcia: The dropping prices of Brent oil.

Fernando Garcia: This is the foreign scenario, Brent prices was down when compared to the previous quarter, just like the crack spread in diesel margins were reduced however, we managed to offset by selling more byproducts.

Fernando Garcia: On average.

Fernando Garcia: We see a devaluation of real.

Operator: On average, we see a devaluation of real, but FX was 5.45 reals, with a positive impact in our financial numbers. A 2% appreciation of real in Q3 when compared to 11.2% depreciation of Q2 in 2024. Moving on to the next slide. This has impacted EBITDA in the Q3, partially offset by more oil production in the by-products mix, and because of higher sales volumes domestically. Adjusted EBITDA was BRL 11.6 billion, slightly smaller than the previous quarter when we written off the one-off events. Net profit is a result of the FX impact and the fact that there are no expenses that impacted the previous quarter. On this table, we can see that our cash generation remains robust enough to support investments, financial obligations, and the dividends payment.

Fernando Melgarejo: On average, we see a devaluation of real, but FX was 5.45 reals, with a positive impact in our financial numbers. A 2% appreciation of real in Q3 when compared to 11.2% depreciation of Q2 in 2024. Moving on to the next slide. This has impacted EBITDA in the Q3, partially offset by more oil production in the by-products mix, and because of higher sales volumes domestically. Adjusted EBITDA was BRL 11.6 billion, slightly smaller than the previous quarter when we written off the one-off events. Net profit is a result of the FX impact and the fact that there are no expenses that impacted the previous quarter. On this table, we can see that our cash generation remains robust enough to support investments, financial obligations, and the dividends payment.

Fernando Garcia: But FX was five point forty-five rehouse.

Fernando Garcia: With a positive impact in our financial numbers, 2% appreciation of real in Q3.

When compared to 11 point to depreciation of Q2 and 24.

Fernando Garcia: Moving on to the next slide.

Fernando Garcia: This says impacted a bit there.

Fernando Garcia: In the Q3.

Partially offset or more oil production in the byproducts mix and four and because of higher sales volumes domestically adjusted EBITDA was $11 6 billion slightly smaller than the previous quarter. When we written off the <unk>.

Fernando Garcia: One off events.

Fernando Garcia: Net profit.

Fernando Garcia: As a result of.

Fernando Garcia: The FX.

Fernando Garcia: Impact and the fact that there are no expenses that impacted the previous quarter.

Fernando Garcia: On this stable, we can say that our cash generation remains robust enough.

Fernando Garcia: To support investments financial obligations and the dividends payment.

Fernando Garcia: Let me point out that we are.

Operator: Let me point out that we are investing BRL 4.5 billion, about 30% above previous quarter. That increase is due to scheduled payments of EPC projects, those related to the new platforms in Búzios, and also investments with the start of construction work in P-84 and P-95. This increase won't change the investments provision for the rest of the year. Investments amount to BRL 10.9 billion. On to slide 9. Before I talk about the debt, let me point out the successful issuance that we conducted in August and September. We issued a 10-year bond, maturities 2035, $1 billion, the lowest spread to the US Treasury bond since 2011. At the same time, we had a repurchase plan. The two operations are in line with the debt management strategy of the company, helping us reduce our leverage.

Fernando Melgarejo: Let me point out that we are investing BRL 4.5 billion, about 30% above previous quarter. That increase is due to scheduled payments of EPC projects, those related to the new platforms in Búzios, and also investments with the start of construction work in P-84 and P-95. This increase won't change the investments provision for the rest of the year. Investments amount to BRL 10.9 billion. On to slide 9. Before I talk about the debt, let me point out the successful issuance that we conducted in August and September. We issued a 10-year bond, maturities 2035, $1 billion, the lowest spread to the US Treasury bond since 2011. At the same time, we had a repurchase plan. The two operations are in line with the debt management strategy of the company, helping us reduce our leverage.

Fernando Garcia: Investing $4 5 billion about 30% above previous quarter.

Fernando Garcia: That increase is due to scheduled payments of all L. P projects.

Those related to the new platforms and booze use and also investments.

Fernando Garcia: With the start of construction work in P 84 N P 95.

Fernando Garcia: This increase won't change the.

The investments provision for the rest of the year.

Fernando Garcia: Investments amount to 10.9 billion.

Onto slide nine.

Fernando Garcia: Before I talk about the debt, let me point out the successful and mission that we conducted in August and September we issued a 10 year bond maturities Sweeney 35, 1 billion does the lowest spread to the U S treasury bonds since two.

Fernando Garcia: 2011 at the same time, we had a repurchase plan. The two operations are in line with the debt management strategy of the company.

Fernando Garcia: Helping us to reduce our leverage.

Fernando Garcia: Financial debt was three.

Operator: Financial debt was BRL 25.8 billion, the lowest level since 2008. On to the dividends screen. We are committed to distributing the results generated and the financial sustainability. Growth stat is under control, accrued positive results. The board of directors approved a compensation of BRL 1.32 per share. It will be paid out in two equal installments in February and March. A JCP or dividends will be defined by year's end. We will then have enough information so that we can have the best tax advantage possible. On to the last slide. This is the important contribution of our taxes to federal, state, and local governments. This is just a portion of what Petrobras returns to society.

Fernando Melgarejo: Financial debt was BRL 25.8 billion, the lowest level since 2008. On to the dividends screen. We are committed to distributing the results generated and the financial sustainability. Growth stat is under control, accrued positive results. The board of directors approved a compensation of BRL 1.32 per share. It will be paid out in two equal installments in February and March. A JCP or dividends will be defined by year's end. We will then have enough information so that we can have the best tax advantage possible. On to the last slide. This is the important contribution of our taxes to federal, state, and local governments. This is just a portion of what Petrobras returns to society.

$25 8 billion, the lowest level since 2008 onto the dividends screen.

Fernando Garcia: We are committed to distributing the results generated and the financial sustainability.

Fernando Garcia: Gross debt is under control accrued positive results the board of directors approved.

Fernando Garcia: A compensation of one point 32 real <unk> per share.

Fernando Garcia: It will paid out in two equal installments in February.

Fernando Garcia: In March at J C P or dividends.

Fernando Garcia: We'll be defined by year's end, we will then have enough information. So that we can have the best tax advantaged possible.

Fernando Garcia: Onto the last slide this is the important contribution of our Texas to federal state and local governments. This is just a portion of what Petrobras returns to society on top of that you have dividends paid out to the government and our strategic plans that Ken Gen.

Operator: On top of that, you have dividends paid out to the government and our strategic plans that can generate high yields that can contribute to generate value to both shareholders and society overall. Petrobras had a 14% increase when compared to the same period last year. Taxes amount to BRL 64.4 billion. In conclusion, I would like to turn it over to Eduardo so that we can get started with our Q&A session. Thank you so very much. Thank you, Fernando. On to the Q&A now. Please ask two questions at most. Matheus Enfeldt from UBS asks the first question. Good afternoon. Thank you for taking my questions, and congratulations on the results. My questions are more on the operational side. I'm sorry, but we can't hear you. Can you please go back to the beginning? Can you hear me now, Eduardo?

Fernando Melgarejo: On top of that, you have dividends paid out to the government and our strategic plans that can generate high yields that can contribute to generate value to both shareholders and society overall. Petrobras had a 14% increase when compared to the same period last year. Taxes amount to BRL 64.4 billion. In conclusion, I would like to turn it over to Eduardo so that we can get started with our Q&A session. Thank you so very much.

Fernando Garcia: Great high yields that can contribute to generate value to both shareholders and society overall.

Fernando Garcia: Petrobras had a 14% increase when compared to the same period last year.

Fernando Garcia: Taxes amounted to 64.4 billion Reals.

Fernando Garcia: In conclusion.

Speaker Change: I would like to turn it over to Eduardo So that we can get started with our Q&A session. Thank you so very much.

Fernando Garcia: Thank you Fernando.

Eduardo De Nardi Ros: Thank you, Fernando. On to the Q&A now. Please ask two questions at most. Matheus Enfeldt from UBS asks the first question.

Speaker Change: Onto the Q&A now.

Speaker Change: Please ask.

Speaker Change: Two questions.

Speaker Change: At most.

Speaker Change: Mattel's info from UBS asks the first question.

Matheus Enfeldt: Good afternoon. Thank you for taking my questions, and congratulations on the results. My questions are more on the operational side. I'm sorry, but we can't hear you. Can you please go back to the beginning? Can you hear me now, Eduardo?

Speaker Change: Good afternoon.

Speaker Change: Thank you for taking my questions and congratulations on the results.

Speaker Change: My questions are more on the operational side.

I'm sorry.

But we can't hear you can you. Please go back to the beginning.

Speaker Change: Can you hear me now Eduardo Yes, I can hear now fine I'm sorry.

Fernando Melgarejo: Yes, I can hear you now fine.

Eduardo De Nardi Ros: Yes, I can hear you now fine.

I'll be focusing on the operational side.

Operator: I'm sorry. I'll be focusing on the operational side. Question one, can you give us more color on the Q3 production levels? You had an expectation of better performance. Q2 had a negative impact of scheduled and unscheduled shutdowns. How much of this quarter, including pre-salt, were impacted or was impacted by those shutdowns? What's the outlook down the road? Can we expect higher production from now all the way to 2025? What is the short-term prediction? The second question is about exploration. ANP data shows that we had the least or the lowest amount historically. What is the company doing, thinking about explorations both in Santos and Campos Basins, replenishing reserves, given the domestic difficulties? Would that make sense to acquire companies abroad? Or would it make sense to consider acquiring companies that have a portfolio already in operation? These are my questions. Thank you.

Matheus Enfeldt: I'm sorry. I'll be focusing on the operational side. Question one, can you give us more color on the Q3 production levels? You had an expectation of better performance. Q2 had a negative impact of scheduled and unscheduled shutdowns. How much of this quarter, including pre-salt, were impacted or was impacted by those shutdowns? What's the outlook down the road? Can we expect higher production from now all the way to 2025? What is the short-term prediction? The second question is about exploration. ANP data shows that we had the least or the lowest amount historically. What is the company doing, thinking about explorations both in Santos and Campos Basins, replenishing reserves, given the domestic difficulties? Would that make sense to acquire companies abroad? Or would it make sense to consider acquiring companies that have a portfolio already in operation? These are my questions. Thank you.

Speaker Change: Question, one can you give us more color on the Q3 production levels, you had an expectation of better performance.

Speaker Change: Q2 had a negative impact of scheduled and unscheduled shutdowns how.

Speaker Change: How much of this order, including pre salt were impacted or was impacted by those shutdowns and what's the outlook down the road.

Speaker Change: Can we expect higher production from now all the way to 2025, what is the short term prediction.

Speaker Change: And the second question is about exploration.

Speaker Change: A N P data shows that we had the least.

Speaker Change: Or the lowest amount.

Speaker Change: Historically.

Speaker Change: So what is the company doing.

Speaker Change: Thinking about explorations, both incentives and Campos basins.

Speaker Change: Replenishing reserves given the domestic difficulties would that makes sense too.

Speaker Change: Acquire.

Speaker Change: Companies abroad.

Or would it make sense to consider.

Wiring companies that have a portfolio already in operation. These are my questions. Thank you.

Speaker Change: Thank you Mattel's.

Sylvia dos Anjos: Thank you, Matheus. Sylvia will take those answers. Hi, Matheus. I'll begin with your second question. You asked about the reduction in exploration and the potential in Santos Basin. It's always important to remember that in 2006, we were able to achieve our self-sufficiency, which we had dreamed of for so long. The determining factor of that is that we are now increasing production and replacing our reserves. That's our track. We see that we have our strategic plan, 2027 and 2028, over $7 billion in exploration. In this research project, we have a significant oil potential that we are investing in three ways. First, you asked about Santos. Yes, we are replenishing that. We're also investing in new opportunities in the fields that we already have, and we're seeking new fields as well.

Fernando Melgarejo: Thank you, Matheus. Sylvia will take those answers.

Speaker Change: Sylvia will take those answers hi, Mattel's I'll begin with your second question.

Sylvia dos Anjos: Hi, Matheus. I'll begin with your second question. You asked about the reduction in exploration and the potential in Santos Basin. It's always important to remember that in 2006, we were able to achieve our self-sufficiency, which we had dreamed of for so long. The determining factor of that is that we are now increasing production and replacing our reserves. That's our track. We see that we have our strategic plan, 2027 and 2028, over $7 billion in exploration. In this research project, we have a significant oil potential that we are investing in three ways. First, you asked about Santos. Yes, we are replenishing that. We're also investing in new opportunities in the fields that we already have, and we're seeking new fields as well.

Speaker Change: You asked about the reduction in exploration and the potential in bus yet of Santos.

Always important to remember that in 2006, we were able to achieve our self sufficiency, which we had dreamed of for so long and the determining factor.

Speaker Change: Of that is that we are now increasing production and replacing our reserves that's our track.

We see that we have our strategic plan 27 and 28.

Speaker Change: Over $7 billion in exploration and in this research project.

Speaker Change: We have a significant oil potential that we are investing in in three ways.

Speaker Change: First.

Speaker Change: You asked about Santos, Yes, we are replenishing that we're also investing in new opportunities in the fields that we already have and we're seeking new fields as well.

Speaker Change: And that's where the Equatorial basin comes in where we have the greatest volume of prospects and that has ever been done that was in there.

Fernando Melgarejo: That's where the Equatorial Basin comes in, where we have the greatest volume of prospection that has ever been done. That was in 2013. It's also very similar to the Campos Basin. The Equatorial Basin is also similar in its reservoirs. In many technical aspects, it's a potential that is also similar. The seismic characteristics are again, also similar. This occurs both in Venezuela and in the more recent discoveries in Guyana and Suriname. There's enormous potential there that we need to assess, and we can only assess it by drilling, and for that, we need a license. That is our primary line of investments, our roadmap. We are investing over $3 billion of our budget into that alone. Your other question is about investments outside of Brazil.

Sylvia dos Anjos: That's where the Equatorial Basin comes in, where we have the greatest volume of prospection that has ever been done. That was in 2013. It's also very similar to the Campos Basin. The Equatorial Basin is also similar in its reservoirs. In many technical aspects, it's a potential that is also similar. The seismic characteristics are again, also similar. This occurs both in Venezuela and in the more recent discoveries in Guyana and Suriname. There's enormous potential there that we need to assess, and we can only assess it by drilling, and for that, we need a license. That is our primary line of investments, our roadmap. We are investing over $3 billion of our budget into that alone. Your other question is about investments outside of Brazil.

Speaker Change: 2013.

Speaker Change: It's also very similar to the Campos Basin E. Equatorial basin is also similar.

Speaker Change: In its reservoirs.

Speaker Change: In many technical aspects, it's a potential with that is also similar the seismic characteristics are again also similar this occurs.

Speaker Change: In Venezuela and in the more recent discoveries in Guyana and Suriname.

Speaker Change: So there is enormous potential there that we need to assess and we can only a SaaS it by drilling and for that we need a license. So that is our primary line of investments our roadmap.

Speaker Change: We are investing over $3 billion of our budget into that alone.

Speaker Change: And your other question is about investments outside of Brazil.

Speaker Change: So of course, the more production occurs the more our need to replenish those reserves.

Fernando Melgarejo: Of course, the more production occurs, the more our need to replenish those reserves. We are looking in regions that have the greatest potential. We invest our efforts into places where we have more established potential, and that's our basins. We have conjugate basins in Africa, offshore. Those are very similar. What we're looking at right now is very similar to Santos in the post-salt region. Of course, always looking at economic viability and profitability for Petrobras. I also want to mention that this year we finished our acquisition in São Tomé and Príncipe. We accomplished an investment in another basin in Equatorial Africa, and we are currently waiting for our license in that equatorial margin.

Sylvia dos Anjos: Of course, the more production occurs, the more our need to replenish those reserves. We are looking in regions that have the greatest potential. We invest our efforts into places where we have more established potential, and that's our basins. We have conjugate basins in Africa, offshore. Those are very similar. What we're looking at right now is very similar to Santos in the post-salt region. Of course, always looking at economic viability and profitability for Petrobras. I also want to mention that this year we finished our acquisition in São Tomé and Príncipe. We accomplished an investment in another basin in Equatorial Africa, and we are currently waiting for our license in that equatorial margin.

Speaker Change: So we are looking in regions that have the greatest potential.

Speaker Change: So.

Speaker Change: We.

Speaker Change: Invest our efforts into places, where we have more established potential and that's our basins. We have cars that get basins in Africa offshore.

Speaker Change: And those are very similar.

Speaker Change: What we're looking at right now is very similar to Santos in the post Salt Reagan.

Speaker Change: Course, always looking at economic viability and profitability for Petrobras.

I also want to mention that this year, we finished our acquisition in St to may in principle.

We also had.

Speaker Change: We accomplished uninvested in.

Another basin in Equatorial Africa and.

Speaker Change: And we are currently waiting for our license in that Equatorial margin.

Speaker Change: There is a lot of potential there.

Fernando Melgarejo: There is a lot of potential there, but we can only find out to what extent after we drill, and that is when we will confirm whether or not our model is correct. I think that's one of your questions. The other question is about the downtimes. Yes, in fact, this year was atypical. We had scheduled and unscheduled downtime. Scheduled ones were especially in Santos, in large-scale basins. Just to give you an idea of the scheduled downtimes, we ceased producing roughly almost 150,000 barrels a day. Those scheduled downtimes are important for the longevity and safety of our units. It's just like a car. You need to stop every once in a while and perform an inspection. That's what we do. They don't occur every year.

Sylvia dos Anjos: There is a lot of potential there, but we can only find out to what extent after we drill, and that is when we will confirm whether or not our model is correct. I think that's one of your questions. The other question is about the downtimes. Yes, in fact, this year was atypical. We had scheduled and unscheduled downtime. Scheduled ones were especially in Santos, in large-scale basins. Just to give you an idea of the scheduled downtimes, we ceased producing roughly almost 150,000 barrels a day. Those scheduled downtimes are important for the longevity and safety of our units. It's just like a car. You need to stop every once in a while and perform an inspection. That's what we do. They don't occur every year.

Speaker Change: But we can only find out to what extent after we drill and that is when we will confirm whether or not our model is correct.

Speaker Change: So I think that's one of your question. The other question is about the <unk> downtime. Yes. In fact this year was atypical we had scheduled and unscheduled downtime.

Speaker Change: Scheduled ones or especially in Santos in a large scale.

Speaker Change: Basins.

Speaker Change: Just to give you an idea of the scheduled downtime.

Speaker Change: We ceased producing roughly almost 150 barrels a day thousands barrels a day.

Speaker Change: But those scheduled downtime are important for the longevity.

Speaker Change: And safety.

Speaker Change: Our units.

Speaker Change: It's just like a car you need to stop every once in a while and performing inspection. So that's what we do the don't occur every year they occur in different interspersed periods and this year.

Fernando Melgarejo: They occur in different interspersed periods, and this year that occurred in Santos. We also have unscheduled downtime, which occur for many different potential reasons, such as being legally mandated or because we discover something that occurred. There's also another reason could be worker strikes. The ANP agency in Brazil also atypically ordered us to stop for a period. Again, this was all occurred within a safe margin of risk. All in all, 2.8 million barrels, which is roughly 4%. All right. Thank you, Sylvia. Our next question comes from Monique from Itaú. Hello, everyone. Good afternoon. Thanks for taking my questions, and congratulations on your results. I'm going to follow up on Matheus Enfeldt's question for Sylvia again. With regard to the unscheduled and extraordinary downtime, how would Petrobras classify the reasons behind this downtime? What were the main causes?

Sylvia dos Anjos: They occur in different interspersed periods, and this year that occurred in Santos. We also have unscheduled downtime, which occur for many different potential reasons, such as being legally mandated or because we discover something that occurred. There's also another reason could be worker strikes. The ANP agency in Brazil also atypically ordered us to stop for a period. Again, this was all occurred within a safe margin of risk. All in all, 2.8 million barrels, which is roughly 4%.

Speaker Change: That occurred in Santos.

Speaker Change: And we also have unscheduled downtime, which occur for many different potential reasons.

Speaker Change: Such as being legally mandated or because we discover something that occurred.

Speaker Change: There's also another reason could be workers' strikes the A&P agency in Brazil.

Speaker Change: Also a typically ordered us to stop for a period, but again this was all occurred.

Speaker Change: Within.

Speaker Change: A safe margin of risk.

Speaker Change: So all in all 2.8 million barrels, which is roughly 4%.

Matheus Enfeldt: All right. Thank you, Sylvia.

Speaker Change: Alright, Thank you Sylvia.

Speaker Change: Our next question comes from Monique from Ito.

Eduardo De Nardi Ros: Our next question comes from Monique from Itaú.

Monique Greco: Hello, everyone. Good afternoon. Thanks for taking my questions, and congratulations on your results. I'm going to follow up on Matheus Enfeldt's question for Sylvia again. With regard to the unscheduled and extraordinary downtime, how would Petrobras classify the reasons behind this downtime? What were the main causes?

Hello, everyone. Good afternoon, thanks for taking my questions and congratulations on your results.

Speaker Change: I'm going to follow up on <unk> question for Sylvia again.

Speaker Change: With regard to the unscheduled and extraordinary downtime.

Speaker Change: How would Petrobras classify the reasons behind that is downtime.

Speaker Change: What were the main causes and what has the company been doing in terms of process and.

Fernando Melgarejo: What has the company been doing in terms of process in order to improve and reduce these unscheduled or unexpected downtimes or mitigate them? My next question is about CapEx. We've been talking with Petrobras over the past few months about a mismatch between the physical and financial advances in regard to the roadmap. You always mention that there is a improvement process underway to improve the CapEx curve such that the mismatch or deviation will be reduced, and so that the plan will be more, a better fit for reality, the reality of the projects. My second question is, could you please comment about how the CapEx projection refinement process is proceeding, especially with regard to the future plans? Thank you. All right. Our first question will be for Sylvia, and the second will be for Renata, but please feel free.

Monique Greco: What has the company been doing in terms of process in order to improve and reduce these unscheduled or unexpected downtimes or mitigate them? My next question is about CapEx. We've been talking with Petrobras over the past few months about a mismatch between the physical and financial advances in regard to the roadmap. You always mention that there is a improvement process underway to improve the CapEx curve such that the mismatch or deviation will be reduced, and so that the plan will be more, a better fit for reality, the reality of the projects. My second question is, could you please comment about how the CapEx projection refinement process is proceeding, especially with regard to the future plans? Thank you.

Speaker Change: In order to improve and reduce the is unscheduled or unexpected downtime or mitigate them. My next question is about capex.

Speaker Change: We've been talking with Petrobras over the past few months.

Speaker Change: How about a mismatch between the physical and financial advances in regard to the roadmap.

Speaker Change: And you always mention that there is improvement process underway to improve the capex curve such that the mismatch or deviation will be reduced and so that the plan will be more a better fit for reality the reality.

Speaker Change: Already of the projects. So my second question is could you. Please comment about how the capex projection refinement process is proceeding.

Speaker Change: Especially with regard to the future plans. Thank you.

Speaker Change: All right. Our first question will be for Sylvia and the second will be far Renato, but please feel free.

Fernando Melgarejo: All right. Our first question will be for Sylvia, and the second will be for Renata, but please feel free.

Speaker Change: The unscheduled stops there.

Renata Baruzzi: The unscheduled stops, they occur due to maintenance reasons that we sometimes detect or sometimes new technologies we want to implement or sometimes actual maintenance. This year we had several shutdowns for due to requirements of the ANP. Remember that during the pandemic, many of our basins and units were not shut down at all. We extended throughout that period. We are now working to clear out any and all requirements made by the ANP so that we can really clear the table of any pending demands so that we can guarantee the longevity of all of our units. That's something that we've been doing primarily to ensure the integrity of all of our investments. Our ultimate goal is to tackle and clear any and all requirements made by the ANP, and we're really clearing all of them out. Hi, Monique.

Sylvia dos Anjos: The unscheduled stops, they occur due to maintenance reasons that we sometimes detect or sometimes new technologies we want to implement or sometimes actual maintenance. This year we had several shutdowns for due to requirements of the ANP. Remember that during the pandemic, many of our basins and units were not shut down at all. We extended throughout that period. We are now working to clear out any and all requirements made by the ANP so that we can really clear the table of any pending demands so that we can guarantee the longevity of all of our units. That's something that we've been doing primarily to ensure the integrity of all of our investments. Our ultimate goal is to tackle and clear any and all requirements made by the ANP, and we're really clearing all of them out.

Speaker Change: They occurred due to maintenance reasons that we sometimes the tact.

Speaker Change: Or sometimes new technologies, we want to implement or sometimes actual maintenance.

Speaker Change: So this year, we had several shutdowns for due to requirements of the A&P.

Speaker Change: Remember that during the pandemic many of our basins and the units were not shut down at all we extended throughout that period. So we are now working to.

Speaker Change: To clear.

Speaker Change: Clear out any and all requirements made by the A&P. So that we can really clear the table of any pending demand. So that we can guarantee the longevity of all of our units and that's something that we've been doing primarily to ensure the integrity.

Speaker Change: Of all of our investments.

Speaker Change: Our ultimate goal is to.

Speaker Change: Tackle and clear any and all requirements made by the A&P and we're really clearing all of them out.

Renata Baruzzi: Hi, Monique. I actually mentioned in an event three months previously about this mismatch you mentioned between physical and financial, and we did in fact implement improvements. In this quarter, you can see to what extent we were able to accomplish more. One of the reasons for that is precisely because we were able to align the physical and financial advancements. From here on out, we did have a liability that we cleared out. From here on out, we are confident that we're going to be able to accomplish everything we plan.

Speaker Change: Hi, Monique.

Speaker Change: I I actually mentioned in an event three months previously.

Fernando Melgarejo: I actually mentioned in an event three months previously about this mismatch you mentioned between physical and financial, and we did in fact implement improvements. In this quarter, you can see to what extent we were able to accomplish more. One of the reasons for that is precisely because we were able to align the physical and financial advancements. From here on out, we did have a liability that we cleared out. From here on out, we are confident that we're going to be able to accomplish everything we plan. Thank you, Sylvia, Renata, and Monique for your questions. Our next question comes from Bruno from Goldman Sachs. Bruno. Thank you. Good afternoon, and congrats on the results. My first question is with regard to the company's cash position.

Speaker Change: About this mismatch you mentioned between physical and financial and we did in fact implement improvements and then this quarter you can see to what extent, we were able to accomplish more and one of the reasons for that is precisely because we were able to align the physical and financial advancements and salt.

Speaker Change: I'm here on out.

Speaker Change: We did have a liability that we cleared out and so from here on out we are confident that we're going to be able to accomplish everything we plan.

Thank you Sylvia Renato and Monique for your questions.

Monique Greco: Thank you, Sylvia, Renata, and Monique for your questions.

Speaker Change: Our next question comes from Bruno from Goldman Sachs Bruno.

Eduardo De Nardi Ros: Our next question comes from Bruno from Goldman Sachs. Bruno. Thank you.

Bruno: Thank you good afternoon, and congrats on the results.

Bruno Amorim: Good afternoon, and congrats on the results. My first question is with regard to the company's cash position.

Bruno: My first question is with regard to the company's cash position you've been operating with a cash position that is far above the $8 billion that you place as a benchmark for what Petrobras would need for its state of the operations. So my question is.

Fernando Melgarejo: You've been operating with a cash position that is far above the $8 billion that you place as a benchmark for what Petrobras would need for its day-to-day operations. My question is, do you have an intention to reduce that surplus cash? Is that a margin you intend to keep in your balance? My next question about exploring reserves. There's a lot of comments made about the Equatorial margin, but what about the Pelotas location? Could you give us an update on that project's current status? Thank you, Bruno. The first question is for Fernando, and about Pelotas, that will go to Sylvia. Fernando. Hi, Bruno. Thanks for your question.

Bruno Amorim: You've been operating with a cash position that is far above the $8 billion that you place as a benchmark for what Petrobras would need for its day-to-day operations. My question is, do you have an intention to reduce that surplus cash? Is that a margin you intend to keep in your balance? My next question about exploring reserves. There's a lot of comments made about the Equatorial margin, but what about the Pelotas location? Could you give us an update on that project's current status?

Bruno: Do you have an intention to reduce that surplus cash.

Bruno: Is that a margin you intend to keep in your balance.

And.

Speaker Change: My next question about exploring exploring reserves, there's a lot of comments made about the equatorial margin, but what about the pelotas.

Speaker Change: Location could you give us an update on that project current status.

Eduardo De Nardi Ros: Thank you, Bruno. The first question is for Fernando, and about Pelotas, that will go to Sylvia. Fernando.

Speaker Change: Thank you Bruno the first question.

Speaker Change: Is for Fernando and about a lot of us that will go to Silvia Fernando.

Fernando Melgarejo: Hi, Bruno. Thanks for your question.

Fernando Garcia: Hi, Bruno.

Speaker Change: Thanks for your question with regard to cash that is available to the company.

Fernando Melgarejo: With regard to cash that is available to the company. It's an interesting topic because when we think about projects and the need for cash flow, we look at projects from exploration to first oil with anywhere from five to seven years. We cannot look at a three-month window, which is the case for other companies with different turnarounds, but that's not us. We have short, medium, and long-term views and our strategic planning, which includes investment indicators, cash flow indicators, how much of that is going to be net, and how much of that we are going to use for our investments. We also have our starting cash. Since we are a company that has a strong cash flow generation, it's natural that we'll have different cycles.

Speaker Change: It's an interesting topic, because when we think about projects and the need for cash flow.

Speaker Change: We look at projects from exploration to first oil.

Speaker Change: With anywhere from five to seven years. So we cannot look at a three month window.

Which is the case for other companies with different turnarounds, but that's not us.

Speaker Change: So we have short medium and long term views and our strategic planning, which includes investment indicators cash flow indicators.

How much of that is going to be net and how much of that we are going to use for our investments.

Speaker Change: And we also have our starting cash.

Speaker Change: Since we are a company that has a strong cash flow generation. It's natural that we will have a different cycles that generate cash it accumulates it builds up and our treasury and what we need to make investments and we distribute that cash because we don't have any <unk>.

Fernando Melgarejo: We generate cash, it accumulates, it builds up in our treasury, and when we need to make investments, then we distribute that cash. Because we don't have any interest in holding cash surplus above what we need. That cash is dedicated to our investments. I remind you that having surplus cash has a cost. The more surplus you have, the more that cost will be. What we have today is BRL 8 billion, as you mentioned, and so we are currently investigating many different scenarios and alternatives, looking at what flexibility we have or don't, and what our mechanisms are, our methods are for working with lower cash. I personally come from the treasury department, and I always have a mind to not work with excessive cash. We'll have an answer by 21 November. Thank you, Fernando. About the Pelotas Basin.

Speaker Change: Dressed in holding cash surplus above what we need that cash is dedicated to our investments and I remind you that having surplus cash has a cost.

Speaker Change: And the more surplus you have the more that cost will be.

Speaker Change: What we have today is 8 billion as you mentioned and so we are currently investigating many different scenarios and alternatives looking at what flexibility, we have or don't and what our mechanisms are our methods are for look for working with lower catch I personally come from the Treasury Department.

Speaker Change: And.

I always.

Speaker Change: Have a mind to not work with excess of cash.

Speaker Change: And we'll have an answer by November 21st.

Fernando Garcia: Thank you Fernando.

Bruno Amorim: Thank you, Fernando.

Sylvia dos Anjos: About the Pelotas Basin. In addition to the Equatorial Margin, another region where we've invested into exploration, and we acquired 29 blocks, 26 in partnership with Shell and 3 more in partnership with CNOOC. We are currently acquiring seismic data, which is necessary for all exploration. It's a gigantic region, one of the largest we've ever worked in, and we're currently working on part of that. We've already begun, and we're likely to finish acquisition next year. It's a very large region, as I mentioned. After the seismic data, we need to interpret the seismic data, select regions, study the blocks, find out which are more favorable, what wells will be drilled, and IBAMA's intentions and permission for that drilling. We're currently working on one of the first stages, the seismic data, and only after that will we be able to really study that data.

Speaker Change: About the Pilotto space. In addition to the Equatorial margin another region, where we've invested into exploration and we acquired 29 blocks.

Sylvia dos Anjos: In addition to the Equatorial Margin, another region where we've invested into exploration, and we acquired 29 blocks, 26 in partnership with Shell and 3 more in partnership with CNOOC. We are currently acquiring seismic data, which is necessary for all exploration. It's a gigantic region, one of the largest we've ever worked in, and we're currently working on part of that. We've already begun, and we're likely to finish acquisition next year. It's a very large region, as I mentioned. After the seismic data, we need to interpret the seismic data, select regions, study the blocks, find out which are more favorable, what wells will be drilled, and IBAMA's intentions and permission for that drilling. We're currently working on one of the first stages, the seismic data, and only after that will we be able to really study that data.

Speaker Change: 26 in partnership with shell and three more in partnership with <unk>.

Speaker Change: We are currently acquiring seismic data, which is necessary for all exploration. It's a gigantic region one of the largest we've ever worked in and we're currently working on part of that which we've already begun and we're likely to finish acquisition next year. It's a very large reason as I mentioned after the seismic Dave.

Speaker Change: Uh huh.

Speaker Change: Then we need to interpret the seismic data.

Speaker Change: Select regions studied the blocks find out which are more favorable what wells will be drilled and ibama his intentions.

Speaker Change: And permission for that drilling we're currently working.

Speaker Change: Working on the one of the first stages, the seismic data and only after that will we be able to really study that data.

Speaker Change: But it is a very promising region, but all of these assets are part of that $7 $5 billion that we set aside for the 24 to 28 period. So we are currently at the seismic data and we are anxiously waiting for more.

Fernando Melgarejo: It is a very promising region. All of these assets are part of that $7.5 billion that we set aside for the 2024 to 2028 period. We are currently at the seismic stage, and we are anxiously waiting for more. We're not going to wait until the end of the year to begin interpreting the data. No. As and when the data arrives, we are interpreting them. All right. Thank you, Sylvia. Thank you, Fernando and Bruno for your question. Our next question is from Bruno from Morgan Stanley. Good afternoon, folks. Thanks for taking my question. I have a follow-up with regard to the topic of cash and shareholders, and another one about Tupi. With regard to shareholders, if there is enough leeway for a complementary distribution, what would be the timing for that?

Sylvia dos Anjos: It is a very promising region. All of these assets are part of that $7.5 billion that we set aside for the 2024 to 2028 period. We are currently at the seismic stage, and we are anxiously waiting for more. We're not going to wait until the end of the year to begin interpreting the data. No. As and when the data arrives, we are interpreting them. All right.

Speaker Change: And again, we're not going to wait until the end of the year to begin interpreting the data and no <unk>.

Speaker Change: As.

Speaker Change: And when the data arrives we are interpreting them.

Speaker Change: Alright. Thank you Silvia, Thank you Fernando for and Bruno for your question.

Eduardo De Nardi Ros: Thank you, Sylvia. Thank you, Fernando and Bruno for your question. Our next question is from Bruno from Morgan Stanley.

Speaker Change: Our next question is from <unk>.

Speaker Change: Bruno from Morgan Stanley.

Good afternoon folks. Thanks for taking my question I have a follow up with regard to the topic of cash.

Bruno Oyamata: Good afternoon, folks. Thanks for taking my question. I have a follow-up with regard to the topic of cash and shareholders, and another one about Tupi. With regard to shareholders, if there is enough leeway for a complementary distribution, what would be the timing for that?

Speaker Change: And shareholders and another one about two P.

Speaker Change: With regard to.

Speaker Change: Shareholders.

Speaker Change: If there is enough leeway for a complementary up distribution.

Speaker Change: What would be the timing for that would that be within this fiscal year.

Fernando Melgarejo: Would that be within this fiscal year, maybe right after presentation or after the strategic plan? What would be the approval method, specifically? Will a board meeting be called? How quickly can we expect that to occur? With regard to Tupi, you mentioned that there is a decline phase, and so I'd like to understand whether that is occurring in line with the 10% that the company mentioned, or whether pre-salt has proven to be more resilient compared to other fields such as Bacalhau and Campos. What about resource allocation platforms, and where would that production move to over the next few years?

Bruno Oyamata: Would that be within this fiscal year, maybe right after presentation or after the strategic plan? What would be the approval method, specifically? Will a board meeting be called? How quickly can we expect that to occur? With regard to Tupi, you mentioned that there is a decline phase, and so I'd like to understand whether that is occurring in line with the 10% that the company mentioned, or whether pre-salt has proven to be more resilient compared to other fields such as Bacalhau and Campos. What about resource allocation platforms, and where would that production move to over the next few years?

Speaker Change: Maybe right after the presentation of our after the strategic plan and what would be the approval method, specifically will a board meeting be called.

Speaker Change: And how quickly can we expect that to occur.

Speaker Change: With regard to T.

Speaker Change: You mentioned that there is a decline.

Speaker Change: Phase and so I'd like to understand whether that is occurring in line with a 10% that the company mentioned or whether a pre salt has proven to be more resilient.

Speaker Change: Compared to other fields, such as Brazil discomfort.

Speaker Change: And what about resource allocation platforms, and where would that production move to over the next few years.

Speaker Change: Well the first question about the compensation for shareholders to Fernando and then Sylvia will be talking about to be.

Fernando Melgarejo: Well, the first question about the compensation for shareholders to Fernando, and then Sylvia will be talking about Tupi. Hi, Bruno. How are you doing? Well, this is what we have seen so far this year. It's only natural to make a decision about extraordinary dividends once the strategic plan is ready, taking into account short-term, midterm, and long-term volumes. Of course, we'll be considering that distribution alongside the strategic plan, if we can meet the deadline, which is to approve by 21 November. Technically, it is possible to distribute that within the same year by the end of December. Thank you, Fernando. Over to you now, Sylvia. Tupi is our beloved giant, and results are better than the average. There's a production decline that is below 10%, way below those in the Campos Basin. We're now embarking on this challenge of Tupi Plus.

Eduardo De Nardi Ros: Well, the first question about the compensation for shareholders to Fernando, and then Sylvia will be talking about Tupi.

Speaker Change: Hi, Bruno.

Bruno: How are you doing.

Fernando Melgarejo: Hi, Bruno. How are you doing? Well, this is what we have seen so far this year. It's only natural to make a decision about extraordinary dividends once the strategic plan is ready, taking into account short-term, midterm, and long-term volumes. Of course, we'll be considering that distribution alongside the strategic plan, if we can meet the deadline, which is to approve by 21 November. Technically, it is possible to distribute that within the same year by the end of December.

Speaker Change: Oh. This is what we have seen so far this year.

Speaker Change: It's only natural to make a decision about extraordinary dividends once the strategic plan is ready taking into account short term midterm and long term volumes.

Speaker Change: Of course, we'll be considering that distribution alongside the strategic plan.

Speaker Change: If we can meet the deadline, which is to approve by November 21st.

Speaker Change: Technically it is possible to distribute dead within the same year.

Speaker Change: By the end of December.

Speaker Change: Thank you Fernando over to you now Sylvia.

Eduardo De Nardi Ros: Thank you, Fernando. Over to you now, Sylvia.

Two P is our.

Sylvia dos Anjos: Tupi is our beloved giant, and results are better than the average. There's a production decline that is below 10%, way below those in the Campos Basin. We're now embarking on this challenge of Tupi Plus.

Beloved giant and results are better than the average there is a production decline that is below 10%.

Speaker Change: Way below than those in the Campos basin.

Speaker Change: We're now embarking on this challenge of two P plus.

Speaker Change: It's almost a thousand barrels a day.

Sylvia dos Anjos: It's almost 1,000 barrels a day, but the goal is to reach 1 million. Tupi would like to compete with Búzios that is aiming at reaching 1 million next year. Tupi is being refurbished. Tupi Plus would include more additional wells. We're going to review all the infrastructure to inject water and gas to revitalize those pipelines and maybe the use of another platform. We want to have the smaller decline possible. We don't want to experience what we've seen in the Campos Basin, which is a major decline. Including, we have the aim of maintaining the very strong reinjection on our wells so that we can keep the production line declining as little as possible. Thank you, Sylvia and Bruno. Gabriel from Citi is up next. Over to you, Gabriel. Hello, Eduardo. Thank you for taking my question. I have two questions, actually.

Speaker Change: But the goal is to reach the 1 million.

<unk> would like to.

Compete with Booz use that is aiming at reaching a million next year.

Speaker Change: So.

Speaker Change: B is being refurbished.

Speaker Change: Two P plus would include more additional wells.

We're going to review all of the infrastructure to inject water and gas.

To Roberto lives those pipelines and maybe the use of another.

Speaker Change: Form.

Speaker Change: We want to have the smaller decline possible.

Speaker Change: We don't want to experience what we've seen in the Campos basin, which is a major decline.

Speaker Change: Including we have the aim of maintaining the very strong re injection and Nols. So that we can keep the production line declining as little as possible.

Speaker Change: Thank you Sylvia and Bruno.

Eduardo De Nardi Ros: Thank you, Sylvia and Bruno. Gabriel from Citi is up next. Over to you, Gabriel.

Speaker Change: Gabrielle from city is up next.

Speaker Change: Over to yoga Rio.

Speaker Change: Hello Eduardo.

[Analyst] (Citi): Hello, Eduardo. Thank you for taking my question. I have two questions, actually. Let me go back to the capital structure. We've been focusing on minimum cash and gross debt, but we disregard leverage. There's a more pessimistic outlook for next year. I would like to understand what you're considering in terms of capital structure. The company isn't investing as much, but there is still a lot of things to do. Equatorial Margin, the Pelotas Basin. Can you hear me?

Speaker Change: Thank you for taking my question I have two questions actually.

Let me go back to the capital structure.

Operator: Let me go back to the capital structure. We've been focusing on minimum cash and gross debt, but we disregard leverage. There's a more pessimistic outlook for next year. I would like to understand what you're considering in terms of capital structure. This meeting is being recorded. The company isn't investing as much, but there is still a lot of things to do. Equatorial Margin, the Pelotas Basin. Can you hear me? We could hear the first part of your question, but we couldn't hear the second question. Can you repeat that, please? The first part is the ideal or the optimum leverage rates. What should be the ideal point? The second question is looking at investments more directly. ANP and environmental agencies, licensing, but you had some more squeezed debt services, hiring FPSO, drilling probes.

Speaker Change: We've been focusing on minimum cash.

Speaker Change: And gross debt.

Speaker Change: But we disregard leverage.

Speaker Change: There's a more pessimistic outlook for next year, but I would like to understand what you are considering in terms of capital structure.

Speaker Change: What is the size of the influence.

Speaker Change: This meeting is being recorded isn't investing as much but theres still a lot of things to do equatorial <unk>.

Speaker Change: <unk> the bit below test spacing.

Speaker Change: Can you hear me.

Speaker Change: We could hear the first part of your question.

Eduardo De Nardi Ros: We could hear the first part of your question, but we couldn't hear the second question. Can you repeat that, please?

But we couldn't hear the second question can you can you repeat that please.

Yeah.

[Analyst] (Citi): The first part is the ideal or the optimum leverage rates. What should be the ideal point? The second question is looking at investments more directly. ANP and environmental agencies, licensing, but you had some more squeezed debt services, hiring FPSO, drilling probes.

Speaker Change: The first part is the idea or the optimum leverage rates.

So what should be the ideal point.

Speaker Change: The second question is looking at investments more directly.

A N P and environmental agencies licensees, but you had some more squeeze dead services.

Speaker Change: Irene Appia so drilling.

Speaker Change: <unk>.

Speaker Change: I think this is ty.

Speaker Change: Tighter market.

Operator: I think this is a tighter market, and Petrobras has been trying to adjust. Here's my question: How are you going to get away with this problem? FPSO, how can you have more flexibility to hire these vessels in 2025? And what would be the impact to the budget? Would it be around BRL 9 billion? Is this the new level of investments? These are major units, but these are higher numbers than what we've seen in the past. What would the inflation impact be? Thank you, Gabriel, for the question. Fernando Melgarejo addresses the first one, and then Renata Baruzzi. Thank you. Cash and the ceiling for the debt is being discussed within the strategic planning cycle. We discuss in depth the company's capital structure. What would be the ideal balance between own capital and third-party capital? We've been discussing that within that strategic planning exercise.

[Analyst] (Citi): I think this is a tighter market, and Petrobras has been trying to adjust. Here's my question: How are you going to get away with this problem? FPSO, how can you have more flexibility to hire these vessels in 2025? And what would be the impact to the budget? Would it be around BRL 9 billion? Is this the new level of investments? These are major units, but these are higher numbers than what we've seen in the past. What would the inflation impact be?

Speaker Change: And Petrobras has been trying to adjust.

Speaker Change: So here's my question, how are you going to get away with this problem.

Speaker Change: F. P. S. So how can you have more flexibility to higher.

Speaker Change: These vessels in 2025.

Speaker Change: And what would be the impact in the budget, but it would be around 9 billion.

Speaker Change: Is this the new level of investments. These are major units, but these are.

Speaker Change: Higher numbers than what we've seen in the past what would the inflation impact be.

Eduardo De Nardi Ros: Thank you, Gabriel, for the question. Fernando Melgarejo addresses the first one, and then Renata Baruzzi.

Speaker Change: Thank you Gabriel for the question.

Speaker Change: Fernando.

Speaker Change: Addresses the first one and then Renato.

Speaker Change: Thank you.

Fernando Melgarejo: Thank you. Cash and the ceiling for the debt is being discussed within the strategic planning cycle. We discuss in depth the company's capital structure. What would be the ideal balance between own capital and third-party capital? We've been discussing that within that strategic planning exercise.

Speaker Change: Cash.

Speaker Change: And the ceiling for the debt is being discussed within the strategic planning cycle will discuss in depth the company's cap.

Speaker Change: Capital structure, what would be the ideal balance between own capital and third party capital, we've been discussing that within that strategic planning exercise.

Speaker Change: Leverage levels should be appropriate.

Renata Baruzzi: Leverage levels should be appropriate to the situation of the company and our business plan, and this will be made public during that strategic planning. Many things are discussed there because this is the most important report at year's end. It can provide several answers. We want to optimize the company's capital structure and try to strike the ideal balance between own and third party's capital. IFRS 16 will have to acknowledge that as a debt. It's a debt proxy per se. The investment flow changes. If it's our own capital, we have more intensive flows at the start. If it's third party, I can dilute that over time. Models are different. The characteristics are different, and leasing is the ideal strategy we've adopted.

Fernando Melgarejo: Leverage levels should be appropriate to the situation of the company and our business plan, and this will be made public during that strategic planning. Many things are discussed there because this is the most important report at year's end. It can provide several answers. We want to optimize the company's capital structure and try to strike the ideal balance between own and third party's capital. IFRS 16 will have to acknowledge that as a debt. It's a debt proxy per se. The investment flow changes. If it's our own capital, we have more intensive flows at the start. If it's third party, I can dilute that over time. Models are different. The characteristics are different, and leasing is the ideal strategy we've adopted.

Speaker Change: To the situation of the company and our business plan.

Speaker Change: And this will be made public during the strategic planning.

Speaker Change: Many things are discussed there because this is the most important report.

Speaker Change: At year's end it can provide several answers.

Speaker Change: We want to optimize the company's capital structure and try to strike the ideal balance between one and third party capital.

Speaker Change: The Ifr us I F. R. S 16 will have two <unk>.

Speaker Change: Acknowledge that as a dead it's of that proxy per se.

Speaker Change: The investment flow changes, if it's our own capital we have more intensive flows at the start if it's third party I can dilute that overtime models are different the correct characteristics are different.

Speaker Change: And leasing is the <unk>.

Speaker Change: Ideally <unk> strategy, we have adopted.

Speaker Change: These are good debt to have.

Operator: These are good debt to have. All these things are paid out of the results, and this is being reflected in the capital structure we are considering for the 2025, 2029 cycle. Yes, Gabriel, you're right. We have a hard time leasing these FPSOs that ended up delaying some of these projects. Here's what we did. Fernando and his team helped us approach the market to try to understand what was going on. We found out that these companies had a hard time getting credit lines, so they couldn't come up with a chartering proposal. The other issue was the payments flow, just like I said before. We actually remodeled that model to a neutral cash flow. There's no financing in either direction, companies, or Petrobras, so it's a net cash flow. We changed the chartering model. We're not hiring this type of services.

Fernando Melgarejo: These are good debt to have. All these things are paid out of the results, and this is being reflected in the capital structure we are considering for the 2025, 2029 cycle.

Speaker Change: All of these things are paid out out of the results and this is being reflected in the capital structure. We are considering for the 'twenty to 'twenty five 'twenty 'twenty and I in a cycle.

Speaker Change: Yes, Gabriel you're right, we have hard time leasing these F. Dsos that ended up delaying some of these projects here.

Renata Baruzzi: Yes, Gabriel, you're right. We have a hard time leasing these FPSOs that ended up delaying some of these projects. Here's what we did. Fernando and his team helped us approach the market to try to understand what was going on. We found out that these companies had a hard time getting credit lines, so they couldn't come up with a chartering proposal. The other issue was the payments flow, just like I said before. We actually remodeled that model to a neutral cash flow. There's no financing in either direction, companies, or Petrobras, so it's a net cash flow. We changed the chartering model. We're not hiring this type of services.

Speaker Change: His Woodward did Fernand.

Speaker Change: Fernando and he's seen.

Speaker Change: Helped us.

Speaker Change: Approach to the market to try to understand what was going on.

Speaker Change: We found out.

They're these companies had a hard time.

Speaker Change: Getting credit lines.

Speaker Change: So they couldn't come up with the chartering proposal.

Speaker Change: The other issue was the payments flow just like I said before.

Speaker Change: We actually remodeled that model to a neutral cash flow.

Speaker Change: There is no financing.

In either direction companies or Petrobras, so it's a net.

Cash flow, so we changed the chartering model.

Speaker Change: We're not hiring this type of services.

Speaker Change: For the coming platforms, we're not going to use that alternative one of them is P O T.

Operator: For the coming platforms, we're not going to use that alternative. One of them is BOT. The CapEx comes out of Petrobras. The operations run by our company, and then. Or the company owns that asset, and then it's transferred over to Petrobras. That will help companies be part of that bidding process. We've seen significant growth in rigid EPCIs. That's what we call it, rigid or pipelines. In the past two, we've seen that trend, that downward trend, by bringing more players to that bid. We have more companies participating, especially because of the contract adjustments we've made, payment terms. We have five players for the EPCI. We are considering Petrobras being part of that EPC. We are going to hire.

Renata Baruzzi: For the coming platforms, we're not going to use that alternative. One of them is BOT. The CapEx comes out of Petrobras. The operations run by our company, and then. Or the company owns that asset, and then it's transferred over to Petrobras. That will help companies be part of that bidding process. We've seen significant growth in rigid EPCIs. That's what we call it, rigid or pipelines. In the past two, we've seen that trend, that downward trend, by bringing more players to that bid. We have more companies participating, especially because of the contract adjustments we've made, payment terms. We have five players for the EPCI. We are considering Petrobras being part of that EPC. We are going to hire.

Speaker Change: The Capex comes out of Petrobras the operations Renbarger Company and then our the company.

Speaker Change: Owns that asset and then it's transferred over to Petrobras. So that will help companies be part of that bidding process.

Speaker Change: We've seen significant growth.

Speaker Change: In rigid E. P. C is that's what we call it rigid.

Speaker Change: Or.

Speaker Change: Pipelines.

Speaker Change: But in the past too we've seen.

Speaker Change: That trend that downward trend by bringing more players.

Speaker Change: To that bid we have more companies.

Speaker Change: Participating spec.

Especially because of the contract adjustments we've made.

Speaker Change: Payment terms, so we have five players for the PCI.

Speaker Change: And we are considering.

Speaker Change: Petrobras being part of that and a P. C. We are going to hire we are going to charter the vessel and the equipment separately. So that we can come up with their contract and still have that alternative to do that in house instead of going out to the market.

Operator: We're gonna charter the vessel and the equipment separately so that we can come up with that contract and still have that alternative to do that in-house instead of going out to the market. As to prices, nickel is one of the top commodities that would impact prices of our equipment and ducts and pipelines and for all our units. Back in 2022, $48,000 was the price of a ton of nickel. Today, it's at $16,000. Our expectation is that these prices are going to come down because of that commodity price. Have I addressed everything? Yes. Thank you, Fernando. Thank you, Gabriel. Pedro from BTG is up next. Pedro, over to you. Hello, good afternoon. I have two questions. What are the possible tax deductions in the coming quarters? This has begun to impact Q3 results.

Renata Baruzzi: We're gonna charter the vessel and the equipment separately so that we can come up with that contract and still have that alternative to do that in-house instead of going out to the market. As to prices, nickel is one of the top commodities that would impact prices of our equipment and ducts and pipelines and for all our units. Back in 2022, $48,000 was the price of a ton of nickel. Today, it's at $16,000. Our expectation is that these prices are going to come down because of that commodity price. Have I addressed everything?

As to prices.

Speaker Change: Nickel is one of the top commodities that would impact prices of our equipment and ducks in pipelines and for all of our units.

Speaker Change: Back in 2022.

Speaker Change: $40000 was the prices a ton of Nicola today's at 16000.

Speaker Change: So our expectation is that is that these prices are going to come down because of that.

Commodity price.

Speaker Change: Have I addressed everything yes.

Speaker Change: Thank you Fernando Thank you Gabriel.

[Analyst] (Citi): Yes. Thank you, Fernando. Thank you, Gabriel.

Speaker Change: Bedroom from BTG is up next federer over to you.

Eduardo De Nardi Ros: Pedro from BTG is up next. Pedro, over to you.

Federer: Hello, Good afternoon.

Pedro Soares: Hello, good afternoon. I have two questions. What are the possible tax deductions in the coming quarters? This has begun to impact Q3 results.

Federer: I have two questions.

Federer: What are the possible.

Federer: Tax deductions.

Federer: In the coming quarters.

Federer: This has.

Federer: Begun to impact Q3 results.

Can you give us more color as to how soon that benefit will be used.

Operator: Can you give us more color as to how soon that benefit will be used? The second question is about the investments curve. Results will be announced at the strategic planning announcement, but can you share what is the profile of implementation CapEx? Are you going to have a change in the share of the different CapEx profile when compared to this year's plan to last year's? Thank you. Pedro, can you address or can you field both questions, Fernando? Yes. Let me talk about the tax authorities. For Q3, cash flow include these positive impacts, better tax or income tax and social contribution, and $800 million of savings, of about $4.2 billion worth of savings just by paying out those taxes because of that offset in our fiscal base.

Pedro Soares: Can you give us more color as to how soon that benefit will be used? The second question is about the investments curve. Results will be announced at the strategic planning announcement, but can you share what is the profile of implementation CapEx? Are you going to have a change in the share of the different CapEx profile when compared to this year's plan to last year's?

Speaker Change: And the second question is about the investments curve.

Speaker Change: Results will be announced at the strategic planning announcement, but can you share what.

Speaker Change: Is the profile of implementation Capex are you going to have.

Speaker Change: A change in the share of the different capex profile when compared to this year's plan two last years.

Speaker Change: Thank you Pedro can you address.

Eduardo De Nardi Ros: Thank you. Pedro, can you address or can you field both questions, Fernando?

Fernando Garcia: Okay field both questions Fernando.

Fernando Garcia: Yes.

Fernando Melgarejo: Yes. Let me talk about the tax authorities. For Q3, cash flow include these positive impacts, better tax or income tax and social contribution, and $800 million of savings, of about $4.2 billion worth of savings just by paying out those taxes because of that offset in our fiscal base.

Fernando Garcia: Let me talk about the textbook Thirty's.

Fernando Garcia: Our Q3 cash flow.

Fernando Garcia: They include these positive impacts.

Fernando Garcia: Better tax or income tax.

Fernando Garcia: And social contribution and 800 million U S dollars of savings of about 4.2 billion worth of savings.

Fernando Garcia: Just by paying out those taxes.

Speaker Change: Cause of death.

Speaker Change: Offset in our physical base.

Speaker Change: And the remainder.

Operator: The remainder will be used by Q1, about 3 billion BRL, $500 million, give or take. As to our investments now, we don't envision any major changes as far as their maturity goes. Those that are currently underway, it's still a major amount, even in 2025. It's coming down because you have the implementation cycle, then there's those in prospection. As those that are becoming finalized, that wheel moves around. When we put out strategic plan for last year, that was very important to better understand.

Speaker Change: Will be used by Q first about 3 billion reals.

Fernando Melgarejo: The remainder will be used by Q1, about 3 billion BRL, $500 million, give or take. As to our investments now, we don't envision any major changes as far as their maturity goes. Those that are currently underway, it's still a major amount, even in 2025. It's coming down because you have the implementation cycle, then there's those in prospection. As those that are becoming finalized, that wheel moves around. When we put out strategic plan for last year, that was very important to better understand.

Speaker Change: 500 million U S give or take.

Speaker Change: As to our investments now.

Speaker Change: We don't envision any major changes as far as their maturity goals.

Speaker Change: Those that are currently underway.

Speaker Change: Its a still a major amount even in 2020 five is coming down because you have the implementation cycle and then there's those and prospecting as those that are becoming.

Speaker Change: Finalized.

Speaker Change: D that wheel moves around.

Speaker Change: When we.

Speaker Change: Put out strategic plan for last year that was very important to better understand.

Speaker Change: The maturity levels.

Fernando Melgarejo: The maturity levels and whether we were right in using the necessary resources. We are certain we can use more cash in that case. As I said, I don't see any major changes, when we turn from one year to the next, because our vision is always long-term, four or five years, all the way till we get to the first oil and even for renewable energy. It's not a very distant timeframe. Well, next question will come from Rodrigo from Santander. Rodrigo, good afternoon. Hi, good afternoon. First, I'd like to go back a little bit and talk about post-salt. I'd like to understand the different processes. We recently had Maria Quitéria, but I'd like to understand what are the next revitalization regions for 2027 and 2028.

Speaker Change: And whether we were right.

Speaker Change: And using the necessary resources.

Speaker Change: So we are certain we can use more cash in decades.

Speaker Change: And as I said I don't see any major changes.

Speaker Change: When we turn from one year to the next because our vision is those long term.

Four or five years, all the way to we get to the first oil and even for renewable energy so be startled very distant time frame.

Speaker Change: Well next question will come from Roediger from Santander.

Eduardo De Nardi Ros: Well, next question will come from Rodrigo from Santander. Rodrigo, good afternoon.

Speaker Change: Rodrigo good afternoon.

Rodrigo: Hi, Good afternoon first I'd like to go back a little bit and talk about post salt.

Rodrigo Dal Forno Silva: Hi, good afternoon. First, I'd like to go back a little bit and talk about post-salt. I'd like to understand the different processes. We recently had Maria Quitéria, but I'd like to understand what are the next revitalization regions for 2027 and 2028.

Speaker Change: And I'd like to understand the different processes, we recently had Murray cataria.

Speaker Change: So I'd like to understand what are the next revitalization regions for 27 and 28.

Speaker Change: How can we imagine that the company's curve is going to look like.

Sylvia dos Anjos: How can we imagine that the company's curve is going to look like in that region, in those fields and regions? My next question is a little bit more difficult, but I'd like to get your take about the capital allocation. When we talk about CapEx and M&As, I mean, specifically the revitalization ones and M&As, such as investment in Namibia, which is a project that we can see is quite advanced. How would you balance? How would you say that your decision process is like with regard to that, those organic projects and M&A? Thank you, Rodrigo. Sylvia will take the first one, and then Fernando. Sylvia, please. Actually, Fernando will go first. Hi, Rodrigo. We'll begin with the second question with regard to CapEx and M&As. Well, our internal strategy is to not comment on specific projects. We do reply to questions in a broader sense.

Rodrigo Dal Forno Silva: How can we imagine that the company's curve is going to look like in that region, in those fields and regions? My next question is a little bit more difficult, but I'd like to get your take about the capital allocation. When we talk about CapEx and M&As, I mean, specifically the revitalization ones and M&As, such as investment in Namibia, which is a project that we can see is quite advanced. How would you balance? How would you say that your decision process is like with regard to that, those organic projects and M&A?

Speaker Change: And that Reagan in those fields and regions.

Speaker Change: Okay.

Speaker Change: My next question is a little bit more difficult, but I'd like to get your take about the capital location. When we talk about Capex and S. M&A is.

Speaker Change: I mean, specifically the revitalization ones.

Speaker Change: And M&A is such as investment in Namibia.

Speaker Change: Which is a project that we can see is quite advanced so how would you balance.

Speaker Change: How would you say that your decision process is like with regard to that.

Speaker Change: Those organic projects and eight P M C.

Rodrigo Dal Forno Silva: Thank you, Rodrigo. Sylvia will take the first one, and then Fernando. Sylvia, please. Actually, Fernando will go first.

Speaker Change: Thank you Rodrigo.

Speaker Change: Sylvia will take the first one and then Fernando Sylvia please.

Speaker Change: Actually Fernando will go first.

Speaker Change: Hi, Rodrigo will begin with the second question Mr.

Eduardo De Nardi Ros: Hi, Rodrigo. We'll begin with the second question with regard to CapEx and M&As. Well, our internal strategy is to not comment on specific projects. We do reply to questions in a broader sense.

With regard to Capex and emanates.

Speaker Change: Well, our internal strategy is to not comment on specific projects.

Speaker Change: We do reply to questions in a broader sense with regard to organic investments such as M&A or nonorganic.

Fernando Melgarejo: With regard to organic investments such as M&As or non-organic, whether or not they are organic, they all go through the very same governance process, the same requirement for returns, all scenarios, including resiliency. They do need to generate positive VPL in order for us to move forward. That's a concept that we have here at the company. Our governance is developed in this way. It has been working, and of course, improvements are always welcome, but we do not foresee any changes in that sense. In terms of returns, we see returns of on that investment. Of course, the ones that have higher risk by the book, we want higher return and vice versa. There is also a matter of strategic alignment. Some investments generate synergies, and so they need to be looked at as part of a portfolio and not individually.

Speaker Change: Whether or not they are organic.

They all go through the various same governance process. The same requirement for returns all scenarios, including resiliency, they do need to generate positive detail.

Speaker Change: Order for us to move forward. That's a concept that we have here at the company. Our governors is developed in this way it has been working and of course improvements are always welcome.

Speaker Change: But we do not.

Foresee any changes in that sense in terms of return.

Speaker Change: We're seeing returns on that investment of course, the ones that have higher risk by the book, we want higher return and vice versa, but there is also a matter of strategic alignment.

Speaker Change: Some investments generate synergies and so they need to be looked at as part of our portfolio and not individually and.

Speaker Change: So potentially we can have a smaller return on some investments if they have synergy and if they match well with our portfolio and of course, assuming they are not harming the whole of the company, but if they have a future medium or long term strategy and synergy that will make sense of.

Fernando Melgarejo: Potentially, we can have a smaller return on some investments if they have synergy and if they mesh well with our portfolio, and of course, assuming they are not harming the whole of the company. If they have a future medium or long-term strategy and synergy, that will make sense. Of course, above all, we always need to have a positive VPL, including in resiliency scenarios. Thank you, Fernando. With regard to post-salt and the Campos Basin, we want to see today a recovery. We have four units, new units that we are working in to replenish, renew the post-salt basin in Campos. We're doing great work putting new production wells in place into production, and we foresee a 200,000 barrel increase in that basin. We also have a goal. That basin overall has a very low recovery level, approximately 7%.

Speaker Change: Course above all we always need to have a positive BPL, including in resiliency scenarios.

Speaker Change: Thank you Fernando.

Sylvia dos Anjos: Thank you, Fernando. With regard to post-salt and the Campos Basin, we want to see today a recovery. We have four units, new units that we are working in to replenish, renew the post-salt basin in Campos. We're doing great work putting new production wells in place into production, and we foresee a 200,000 barrel increase in that basin. We also have a goal. That basin overall has a very low recovery level, approximately 7%.

Speaker Change: With regard to post salt.

Speaker Change: And the Campos basin, we want to see today a recovery we have.

Speaker Change: For our units.

Speaker Change: New units.

Speaker Change: With that.

Speaker Change: We are working into <unk>.

Speaker Change: Plenish renew the post salt basin, and Campos, but we're doing great work, putting new production wells in place into production and we foresee a 200000 barrel increase in that basin.

Speaker Change: We also have a goal.

Speaker Change: That basin overall has a very low.

Speaker Change: Recovery.

Speaker Change: Level of approximately 7%, but our goal is to keep the post salt cover.

Fernando Melgarejo: Our goal is to keep the post-salt cover stable, including work in the upcoming wells. The Campos Basin is really our production model, the template that we follow. It's the benchmark that we will use for Africa, for the Equatorial margin. It's really teaching us quite a lot, and we're going to increase production to give longer life to that basin. Our aim is to keep producing for many more years at the same levels.

Sylvia dos Anjos: Our goal is to keep the post-salt cover stable, including work in the upcoming wells. The Campos Basin is really our production model, the template that we follow. It's the benchmark that we will use for Africa, for the Equatorial margin. It's really teaching us quite a lot, and we're going to increase production to give longer life to that basin. Our aim is to keep producing for many more years at the same levels.

Uh huh.

Speaker Change: With a stable.

Speaker Change: Including work in the upcoming wells.

Speaker Change: The Campos basin is really our production model the template that we follow.

Speaker Change: It's it's the benchmark that we will use for Africa for the Equatorial margin. So it's really a teaching us quite a lot and we're going to increase production to give longer life to that basin and our aim is to keep producing for many more years.

Speaker Change: At the same levels of course, not in the short term, but our goal is to treat this this young elder wix is celebrating its 50th anniversary now Campos basin and it really changed the history of Petrobras and of Brazil, and it brought us the knowledge needed to.

Fernando Melgarejo: Of course, not in the short term, but our goal is to treat this young elder, which is celebrating its 50th anniversary now, Campos Basin, and it really changed the history of Petrobras and of Brazil, and it brought us the knowledge needed to move the Santos Basin forward, and it brought us to where we are today, a global benchmark in oil production. The Campos Basin post-salt has our utmost priority to continue to be a role model for all of our basins. Thank you, Sylvia. Thank you, Fernando. Our next questions come from Jorge from Scotiabank. Hello. Congratulations on your results, and thanks for taking my questions. It's been a few months now since the recent gas decree. How did that decree change discussions with the ANP with regard to future projects, and how did it change Petrobras' outlook towards those?

Sylvia dos Anjos: Of course, not in the short term, but our goal is to treat this young elder, which is celebrating its 50th anniversary now, Campos Basin, and it really changed the history of Petrobras and of Brazil, and it brought us the knowledge needed to move the Santos Basin forward, and it brought us to where we are today, a global benchmark in oil production. The Campos Basin post-salt has our utmost priority to continue to be a role model for all of our basins.

Speaker Change: Move the Santos basin forward and it brought us to where we are today, a global benchmark in oil production.

Speaker Change: So the Campos Basin post salt has our utmost priority to continue to be a prop a role model for all of our basis.

Speaker Change: Thank you Silvia Thank you Fernando.

Eduardo De Nardi Ros: Thank you, Sylvia. Thank you, Fernando. Our next questions come from Jorge from Scotiabank.

Speaker Change: Our next questions come from God gave from Scotiabank.

Speaker Change: Yeah.

Jorge Gabrich: Hello. Congratulations on your results, and thanks for taking my questions. It's been a few months now since the recent gas decree. How did that decree change discussions with the ANP with regard to future projects, and how did it change Petrobras' outlook towards those?

Speaker Change: Hello, Congratulations on your results and thanks for taking my questions.

It's been a few months now since the recent gas decree how did that decree change discussions with the A&P with regard to future projects and how did it change Petrobras is outlook towards those.

Speaker Change: And secondly.

Speaker Change: Given the Brazilian deficit in terms of diesel and its current imports.

Mauricio Tolmasquim: Secondly, given the Brazilian deficit in terms of diesel and its current imports, how did Petrobras decide on its supplies geographically and the distribution between small and large players? Does Petrobras tend to concentrate its relationships or opt for a more pulverized type of relationship? Thank you, Jorge. The first question will go to Mauricio Tolmasquim, and then I think we'll, Claudio Schlosser will take that second one. Thank you. Thank you, Jorge. Well, with regard to your first question, initially, we were a little apprehensive, but our read today is that it will apply to new projects and not to already approved ones. We are currently awaiting the publication of the 25, 26 ANP regulatory paper so that we can actually begin discussions with the ANP.

Jorge Gabrich: Secondly, given the Brazilian deficit in terms of diesel and its current imports, how did Petrobras decide on its supplies geographically and the distribution between small and large players? Does Petrobras tend to concentrate its relationships or opt for a more pulverized type of relationship?

Speaker Change: How did Petrobras decide on it supplies geographically and the distribution between small and large players does petrobras tend to concentrate its relationships or opt for more pulverized type of relationship.

Speaker Change: Thank you George.

Eduardo De Nardi Ros: Thank you, Jorge. The first question will go to Mauricio Tolmasquim, and then I think we'll, Claudio Schlosser will take that second one. Thank you.

Speaker Change: The first question will go to Thomas and then.

Speaker Change: I think we'll schloesser will take that second one.

Speaker Change: Thank you thank you Giorgi.

Mauricio Tolmasquim: Thank you, Jorge. Well, with regard to your first question, initially, we were a little apprehensive, but our read today is that it will apply to new projects and not to already approved ones. We are currently awaiting the publication of the 25, 26 ANP regulatory paper so that we can actually begin discussions with the ANP.

Speaker Change: Well.

With regard to your first question. Initially we were a little apprehensive, but are read today is that it will apply to new projects and not two already approved ones. So we are currently awaiting the publication of the 'twenty five 'twenty six.

Speaker Change: A N P regulatory paper.

Speaker Change: So that we can actually begin discussions with the A&P right now in gas we are very much focused on the Senate amendment the pertain law.

Claudio Schlosser: Right now, in gas, we are very much focused on the Senate amendment, the Gas Law, which has some measures that it puts in place to reduce or to impact the Petrobras market. Our discussions have all been very positive. We've moved forward quite extensively, and we have agreements regarding protecting and preserving Petrobras' own production. We've also resolved the issue of GNL imports, and we're now looking at the matter of importing from Bolivia and Argentina, and the contracts that have already been signed with third parties. In short, we are monitoring this agenda, and we are optimistic that it's all going to be sorted out. Thank you. Thank you. Thank you, Mauricio. Mr. Schlosser? Yes. First, I want to clarify something. We do not have a prevalence of imported products in meeting the Brazilian market's needs.

Mauricio Tolmasquim: Right now, in gas, we are very much focused on the Senate amendment, the Gas Law, which has some measures that it puts in place to reduce or to impact the Petrobras market. Our discussions have all been very positive. We've moved forward quite extensively, and we have agreements regarding protecting and preserving Petrobras' own production. We've also resolved the issue of GNL imports, and we're now looking at the matter of importing from Bolivia and Argentina, and the contracts that have already been signed with third parties. In short, we are monitoring this agenda, and we are optimistic that it's all going to be sorted out.

Speaker Change: Which has some measures that it.

Speaker Change: What's in place too.

Speaker Change: To reduce or to impact the Petrobras market.

Speaker Change: But our discussions have all been very positive.

Speaker Change: We've moved forward quite extensively and we have agreements regarding protecting and preserving Petrobras says on production and we will.

Speaker Change: We've also resolved the issue of the GNL imports.

Speaker Change: And we are now looking at the matter of importing from Bolivia, and Argentina, and the contracts that have already been signed with third parties. So in short.

We are monitoring this agenda.

Speaker Change: And we are optimistic that it's all going to be sorted out.

Speaker Change: Thank you.

Jorge Gabrich: Thank you.

Speaker Change: Thank you.

Mauricio Tolmasquim: Thank you.

Speaker Change: Thank you Mauricio.

Eduardo De Nardi Ros: Thank you, Mauricio. Mr. Schlosser?

Mr Schlosser.

Speaker Change: Yes.

Claudio Schlosser: Yes. First, I want to clarify something. We do not have a prevalence of imported products in meeting the Brazilian market's needs.

Speaker Change: Aye.

Speaker Change: First I want to clarify something what we do not have a prevalence of imported products in meeting the Brazilian market's needs on the contrary.

Fernando Melgarejo: On the contrary, ever since we began our new strategic plan, we've been prioritizing Petrobras' assets, including refineries and logistics, in the sense of capturing that margin here in the country. For instance, in 2024 to date, it's at 23% of internal demand for diesel A, with various different players importing, including Petrobras, and the main importers are the distributors. Petrobras does also work in the import market in a way that is complementary to domestic production, and we strive for resiliency in a way that is more effective. To do that, we leverage a number of strategic advantages that we currently have. This decision is based on operational planning processes, on the use of computing tools, and optimization. The geographic region has many different factors.

Claudio Schlosser: On the contrary, ever since we began our new strategic plan, we've been prioritizing Petrobras' assets, including refineries and logistics, in the sense of capturing that margin here in the country. For instance, in 2024 to date, it's at 23% of internal demand for diesel A, with various different players importing, including Petrobras, and the main importers are the distributors. Petrobras does also work in the import market in a way that is complementary to domestic production, and we strive for resiliency in a way that is more effective. To do that, we leverage a number of strategic advantages that we currently have. This decision is based on operational planning processes, on the use of computing tools, and optimization. The geographic region has many different factors.

Speaker Change: Ever since we began our new strategic.

Speaker Change: <unk>.

Plan, we've been prioritizing Petrobras as assets, including refineries and logistics in the sense of capturing that margin here in the country for instance in 'twenty four to date, it's at 23% of internal demand for diesel a.

Speaker Change: With various different players in party, including Petrobras and the main importers are the distributors.

Speaker Change: Petrobras does also work in the import market.

Speaker Change: In a way that is complementary to domestic production and we strive for resiliency in a way that is more effective.

Speaker Change: To do that we leverage a number of strategic advantages that we currently have.

Speaker Change: This decision is based on operational planning processes.

Speaker Change: On the use of computing tools and optimization.

Speaker Change: The geographic region has many different factors.

Speaker Change: We have a whole.

Speaker Change: Bevy of plans for strategic stops when we need to do so in order to supply markets, our client markets in one way or another.

Fernando Melgarejo: We have a whole, bevy of plans for strategic stops when we need to do so in order to supply markets or client markets in one way or another. To that end, we use a number of different computer tools. Inventory levels also have a significant impact. We have a number of different opportunities that we capture from abroad, always striving for synergy between our own operations and imports and exports, as well as return shipping, and using, regional synergy to improve our results. Now, in terms of commercial relationships, we always strive for the best, conditions, including logistics. We always want to be the best option compared to other suppliers, meeting players of many different scales, sizes, and fields of operations, to whatever extent we can, and we want to keep our operations profitable for all our assets. Thank you.

Claudio Schlosser: We have a whole, bevy of plans for strategic stops when we need to do so in order to supply markets or client markets in one way or another. To that end, we use a number of different computer tools. Inventory levels also have a significant impact. We have a number of different opportunities that we capture from abroad, always striving for synergy between our own operations and imports and exports, as well as return shipping, and using, regional synergy to improve our results. Now, in terms of commercial relationships, we always strive for the best, conditions, including logistics. We always want to be the best option compared to other suppliers, meeting players of many different scales, sizes, and fields of operations, to whatever extent we can, and we want to keep our operations profitable for all our assets. Thank you.

So to that end, we use a number of different computer tools inventory levels also have a significant impact we have a number of different opportunities that we capture from abroad.

Always striving for synergy between our own operations and imports and exports as well as return shipping.

Speaker Change: And using our regional synergies to improve our results now.

Speaker Change: Now in terms of commercial relationships.

Speaker Change: We always strive for the best conditions.

Conditions.

Speaker Change: <unk> logistics, so we always want to be the best option compared to other suppliers meeting players of many different scales and sizes and fields of operations.

Speaker Change: To whatever extent we can.

Speaker Change: And we want to keep our operations profitable for all of our assets.

Speaker Change: Thank you.

Speaker Change: Thank you all.

Speaker Change: Our next question comes from Liliana from HSBC Lilly.

Fernando Melgarejo: Thank you all. Our next question comes from Liliana, from HSBC. Lily? Hi, can you hear me?

Jorge Gabrich: Thank you all.

Eduardo De Nardi Ros: Our next question comes from Liliana, from HSBC. Lily?

[Analyst] (HSBC): Hi, can you hear me?

liliana: Hi can you hear me yes.

Speaker Change: Yes perfectly.

Operator: Yes, perfectly.

Eduardo De Nardi Ros: Yes, perfectly.

Speaker Change: Alright, Thanks for taking my questions I have just two.

Fernando Melgarejo: All right. Thanks for taking my questions. I have just two. The first is about reserves. I'd like to know, what can you do to ensure that the environmental license for the Equatorial Margin can come as soon as possible? In the same line, thinking of more reserves, Sylvia has mentioned the revitalization of the Campos Basin. I'd like to understand, wasn't that already included in the 2024/2028 plan? Sylvia, you mentioned 200,000 barrels a day of potential recovery. I'd like to understand whether that was already included in the strategic plan to be put into the curve for 2.4 billion barrels in 2024 to 2027. In the same line of that reserve, do you intend to purchase assets that are already producing in the Campos region so that you yourselves can think about optimizing investments and recovering reserves?

[Analyst] (HSBC): All right. Thanks for taking my questions. I have just two. The first is about reserves. I'd like to know, what can you do to ensure that the environmental license for the Equatorial Margin can come as soon as possible? In the same line, thinking of more reserves, Sylvia has mentioned the revitalization of the Campos Basin. I'd like to understand, wasn't that already included in the 2024/2028 plan? Sylvia, you mentioned 200,000 barrels a day of potential recovery. I'd like to understand whether that was already included in the strategic plan to be put into the curve for 2.4 billion barrels in 2024 to 2027. In the same line of that reserve, do you intend to purchase assets that are already producing in the Campos region so that you yourselves can think about optimizing investments and recovering reserves?

Speaker Change: The first is about reserves.

Speaker Change: I'd like to know.

What can you do to ensure that the environmental license for the equatorial margin can come as soon as possible and at the same line thinking of Mars or Sylvia has mentioned the revitalization of the Campos basin I'd like to understand wasn't that already included in the 24 28 plan.

Speaker Change: Sylvia you mentioned 200000 barrels a day.

Speaker Change: A potential potential recovery.

Speaker Change: I'd like to understand whether that was already included in the strategic plan to be put into the curve for 2.4 billion barrels in 24 to 27.

Speaker Change: And on the same line of that reserve.

Speaker Change: Do you intend to purchase assets that are already producing in the campus region. So that you yourselves can think about optimizing investments and recovering reserves and do you have any idea of the scope or magnitude.

Fernando Melgarejo: Do you have any idea of the scope or magnitude? My second question about downstream field, how have negotiations been working with Yara to provide fertilizers and the sales that Petrobras is going to make for the fertilizer plants?

[Analyst] (HSBC): Do you have any idea of the scope or magnitude? My second question about downstream field, how have negotiations been working with Yara to provide fertilizers and the sales that Petrobras is going to make for the fertilizer plants?

Speaker Change: And <unk>.

Speaker Change: My second question about downstream field.

Speaker Change: How have negotiations been working in it.

Speaker Change: With Yarra.

Speaker Change: Two.

Speaker Change: Provide fertilizers.

Speaker Change: And the sales that Petrobras is going to make for the fertilizer plants.

Sure Yes, thank you Lilly for your questions.

William França da Silva: Sure. Yes. Thank you, Liliana, for your questions. First, we'll answer about reserves and then about the equatorial margin. William will talk about fertilizers per se.

Eduardo De Nardi Ros: Sure. Yes. Thank you, Liliana, for your questions. First, we'll answer about reserves and then about the equatorial margin. William will talk about fertilizers per se.

Speaker Change: First we will answer about reserves.

Speaker Change: And then about the equatorial margin.

Speaker Change: And then William will talk about fertilizers per se.

Hi, Liliana. Thank you for your question.

Fernando Melgarejo: Hi, Liliana. Thank you for your question. Yes, we do seek reserves day by day. That is our motto, almost. We always want to optimize the different fields. The Campos field is part of that plan, but we are trying to accelerate drilling of those wells as much as possible so that we can really obtain those additional 200,000. Yes, that is already included in the 2024/2028 plan. The replenishment of reserves. Also, I must mention the Equatorial Margin. It is truly our challenge. What we can do is try to obtain more from what we have, but the major leap forward comes with new discoveries.

Clarice Coppetti: Hi, Liliana. Thank you for your question. Yes, we do seek reserves day by day. That is our motto, almost. We always want to optimize the different fields. The Campos field is part of that plan, but we are trying to accelerate drilling of those wells as much as possible so that we can really obtain those additional 200,000. Yes, that is already included in the 2024/2028 plan. The replenishment of reserves. Also, I must mention the Equatorial Margin. It is truly our challenge. What we can do is try to obtain more from what we have, but the major leap forward comes with new discoveries.

Speaker Change: Yes, we do seek reserves day by day that is our motto almost.

Speaker Change: We always want to optimize the different skills. So the campus field is part of that plan, but we are trying to accelerate drilling of those wells as much as possible. So that we can really obtain those additional 200000, but yes that is already included in the 24 28.

Speaker Change: Dan.

Speaker Change: And the replenishment of reserves also I'd masked mentioned equatorial margin it is truly our challenge.

Speaker Change: What we can do is try to obtain more from what we have but the major leap forward comes with new discoveries and as I said the equatorial margin.

Fernando Melgarejo: As I said, the equatorial margin, because of how similar they are to other basins and the depositional model of the different reservoirs, the different production reservoirs such as Campos, there is a generation capacity that is very significant and that we can only confirm by drilling. We have an oil system there in the equatorial margin that once tested and confirmed, will yield great results. I always say that people always call it the new pre-salt, but actually the equatorial margin is more similar to the Campos Basin. Hello, good afternoon, everyone. Good afternoon, Liliana. Thanks for your question. In order to obtain a license, Petrobras has really been sparing no effort. I'd like to comment, the latest response that IBAMA gave us was not a negative.

Clarice Coppetti: As I said, the equatorial margin, because of how similar they are to other basins and the depositional model of the different reservoirs, the different production reservoirs such as Campos, there is a generation capacity that is very significant and that we can only confirm by drilling. We have an oil system there in the equatorial margin that once tested and confirmed, will yield great results. I always say that people always call it the new pre-salt, but actually the equatorial margin is more similar to the Campos Basin.

Speaker Change: Because of how similar they are to other basins.

Speaker Change: And the depositional model all of the different reservoirs.

Speaker Change: The different production reservoirs, such as Commvault. There is a generation capacity that is very significant and that we can only confirmed by drilling. So we have an oil system. There in the equatorial margin that once tested and confirmed will yield great results I always say that.

Speaker Change: People always call it the new pre salt, but actually the equatorial margin is more similar to the Campos basin.

Sylvia dos Anjos: Hello, good afternoon, everyone. Good afternoon, Liliana. Thanks for your question. In order to obtain a license, Petrobras has really been sparing no effort. I'd like to comment, the latest response that IBAMA gave us was not a negative.

Speaker Change: Hello, Good afternoon, everyone. Good afternoon Liliana. Thanks for your question.

In order to obtain a license.

Speaker Change: Petrobras has really been sparing no effort and.

Speaker Change: I'd like to comment that the latest response that Ibama gave us was not a negative.

Speaker Change: What they did send US was a number of questions to the technical team regarding the proposal that we presented in early August.

Fernando Melgarejo: What they did send us was a number of questions to the technical team regarding the proposal that we presented in early August, which was the construction of one more base to protect fauna by Petrobras, located in the Oiapoque city limits. Part of what we proposed in our license request to drill the deepwater regions in Amapá is in fact a set of services. It is a physical fauna protection base, but it is integrated with a number, a large number of different, vessels, both ocean-going and riverine, and a significant number of services and specialized technicians, everything specializing in fauna protection. Petrobras and all of our technical teams have been sparing no effort in bringing to IBAMA, increasingly making them more and more confident that we do have the capacity for and will obtain this license.

Sylvia dos Anjos: What they did send us was a number of questions to the technical team regarding the proposal that we presented in early August, which was the construction of one more base to protect fauna by Petrobras, located in the Oiapoque city limits. Part of what we proposed in our license request to drill the deepwater regions in Amapá is in fact a set of services. It is a physical fauna protection base, but it is integrated with a number, a large number of different, vessels, both ocean-going and riverine, and a significant number of services and specialized technicians, everything specializing in fauna protection. Petrobras and all of our technical teams have been sparing no effort in bringing to IBAMA, increasingly making them more and more confident that we do have the capacity for and will obtain this license.

Speaker Change: Which was the construction of one more base to protect fauna biometric breath located in the IR Parkade city.

Speaker Change: City limits.

Speaker Change: And part of what we proposed in our license request to drill the deepwater regions in Amapa is in fact, a set of services.

It is a physical fon a protection base, but it is integrated with a number a large number of different verse.

Speaker Change: Vessels, both ocean going and referring it.

Speaker Change: And a significant number of services and specialized technicians everything specializing in pharma protection. So Petrobras in all of our technical teams have been sparing no effort in bringing to ibama increasingly making them more and more confident that.

Speaker Change: We do.

Speaker Change: Do you have the capacity for and will obtain this license and when we obtained this license we have an exercise that we will perform which is our pre operational assessment and we're ready for that.

Fernando Melgarejo: When we obtain this license, we have an exercise that we will perform, which is our pre-operational assessment, and we're ready for that, including by contracting companies that are highly specialized in this sector. We are quite confident we're going to reply to these latest, new questions. We do not in any way, shape, or form see that as a refusal. Thank you, Clarice. Thank you, Sylvia. William.

Sylvia dos Anjos: When we obtain this license, we have an exercise that we will perform, which is our pre-operational assessment, and we're ready for that, including by contracting companies that are highly specialized in this sector. We are quite confident we're going to reply to these latest, new questions. We do not in any way, shape, or form see that as a refusal.

Speaker Change: Polluting by contracting companies that are highly specialized in the sector.

Speaker Change: So we are quite confident we're going to reply to these latest.

New questions, we do not in any way shape or form see that as a refusal.

Thank you Clarissa Thank you Sylvia.

Eduardo De Nardi Ros: Thank you, Clarice. Thank you, Sylvia. William.

Speaker Change: William.

Yes, we did a non binding memorandum of understanding.

Operator: Yes. We did a non-binding memorandum of understanding. We're now discussing with our RTC, with the area of renewables, and there are some opportunities, some interesting assets on Yara Fertilizers. We're considering producing fertilizers from biomethane. Just like Fernando said, it has to be with positive NPV for the three scenarios. For the Araucária case in the state of Paraná, we want to resume operations in May 2025. It's run by Petrobras alone. There won't be any partnerships to resume operations there. We do have a memorandum with Yara, and we're now discussing possible partnerships in the future. Thank you, William. Thank you, Liliana, for the questions. Over to Caio from Bank of America. You have the floor, Caio. Good afternoon. Thank you for taking my question.

William França da Silva: Yes. We did a non-binding memorandum of understanding. We're now discussing with our RTC, with the area of renewables, and there are some opportunities, some interesting assets on Yara Fertilizers. We're considering producing fertilizers from biomethane. Just like Fernando said, it has to be with positive NPV for the three scenarios. For the Araucária case in the state of Paraná, we want to resume operations in May 2025. It's run by Petrobras alone. There won't be any partnerships to resume operations there. We do have a memorandum with Yara, and we're now discussing possible partnerships in the future.

We're now discussing with our RTC with the area of newer bowls.

And there are some opportunities.

Speaker Change: Some <unk>.

Interesting assets on E I R fertilizers.

Speaker Change: We're considering it.

Speaker Change: Reducing fertilizers from bio methane.

Speaker Change: Cause like Fernando said.

Speaker Change: It has to be with positive NPV for the three scenarios.

Speaker Change: For the Anza case, and the state of Parana.

Speaker Change: We want to resume operations.

Speaker Change: In May 2025, it's run by Petrobras alone.

Speaker Change: There won't be any partnerships to resume operations there, but we do have a memorandum with euro and we are now discussing possible partnerships in the future.

Speaker Change: Thank you William Thank you really for the questions.

Eduardo De Nardi Ros: Thank you, William. Thank you, Liliana, for the questions. Over to Caio from Bank of America. You have the floor, Caio.

Speaker Change: Over to <unk>.

Speaker Change: From Bank of America.

Speaker Change: Do you have the floor Kyle.

Speaker Change: Good afternoon. Thank you for taking my question.

Caio Ribeiro: Good afternoon. Thank you for taking my question.

Speaker Change: For stuff Petrobras has been saying.

Operator: First off, Petrobras has been saying or has been talking about the possibility of internationalization of, you know, assets in Colombia and Namibia. How to prioritize these assets, especially when you consider the potential of the Equatorial margin, the Pelotas Basin, and domestic assets. Would you be able to explore all these fronts at the same time? Or is there any of these projects that would take priority? Once it's been approved, you would turn down the others. I have a more specific question about the gross debt, BRL 35 billion. Do you believe that it's enough for future projects? Would the company consider increasing that ceiling to accommodate more investments or maybe by distributing more cash to investors or both, maybe? Sylvia and then Fernando. All right, Caio. Well, they're not competing projects.

Caio Ribeiro: First off, Petrobras has been saying or has been talking about the possibility of internationalization of, you know, assets in Colombia and Namibia. How to prioritize these assets, especially when you consider the potential of the Equatorial margin, the Pelotas Basin, and domestic assets. Would you be able to explore all these fronts at the same time? Or is there any of these projects that would take priority? Once it's been approved, you would turn down the others. I have a more specific question about the gross debt, BRL 35 billion. Do you believe that it's enough for future projects? Would the company consider increasing that ceiling to accommodate more investments or maybe by distributing more cash to investors or both, maybe?

Speaker Change: Or has it been talking about the possibility of intonation internationalization of you know.

Speaker Change: Assets in Colombia in Namibia.

Speaker Change: How do you prioritize these assets.

Speaker Change: Specially when you consider the potential.

Speaker Change: Of the equatorial margin, the Palatis basin and domestic assets.

Speaker Change: Would you be able to explore all these fronts at the same time or is there any of these projects that would take priority. Once it's been approved you would turn down the others.

Speaker Change: And I have a more specific question about the gross debt 35 billion to believe.

Speaker Change: That it's enough for future projects.

Speaker Change: Would the company consider.

Speaker Change: Increase the sealy to accommodate more investments or maybe by distributing more cash to investors or both maybe.

Speaker Change: Sylvia and then Fernando.

Eduardo De Nardi Ros: Sylvia and then Fernando.

Kyle: Alright Kyle.

Sylvia dos Anjos: All right, Caio. Well, they're not competing projects.

Kyle: Well theyre not competing projects.

Kyle: We can make investments and all of them, both equatorial margin and the pelotas spacing.

Operator: We can make investments in all of them, both Equatorial Margin and the Pelotas Basin, and the investments scheduled abroad. $7.5 billion in exploration, $3.1 billion for Equatorial Margin, $1.3 billion to international projects. We have wells for these areas, Santos, Namibia, this one, this one in South Africa, and also Colombia, Bolivia, and Argentina. It's part of our strategic planning. These are not excluding projects. The answer is yes, we can operate in all fronts, and we do hope to do so, including our Equatorial Margin. Thank you, Sylvia. Fernando. Thank you for your question. We've been discussing that in depth in our strategic planning discussions. This is an excellent exercise to help us envision or see many things, what the company thinks about the future.

Sylvia dos Anjos: We can make investments in all of them, both Equatorial Margin and the Pelotas Basin, and the investments scheduled abroad. $7.5 billion in exploration, $3.1 billion for Equatorial Margin, $1.3 billion to international projects. We have wells for these areas, Santos, Namibia, this one, this one in South Africa, and also Colombia, Bolivia, and Argentina. It's part of our strategic planning. These are not excluding projects. The answer is yes, we can operate in all fronts, and we do hope to do so, including our Equatorial Margin.

Kyle: And the investments.

Scheduled abroad.

Kyle: 7.5 billion U S in exploration.

Kyle: 3.1 for Equatorial margin 1.32 international projects, we have wells for these areas.

Kyle: Central Maine Paris.

Kyle: This what this one in South Africa.

Kyle: And also Colombia, Bolivia, and Argentina, So it's part of our strategic money.

Kyle: These N that excluding projects.

So the answer is yes, we can operate in all fronts and we do hope to do so including our equatorial margin.

Speaker Change: Thank you Sylvia.

Eduardo De Nardi Ros: Thank you, Sylvia. Fernando.

Fernando Melgarejo: Thank you for your question. We've been discussing that in depth in our strategic planning discussions. This is an excellent exercise to help us envision or see many things, what the company thinks about the future.

Speaker Change: Fernando.

Speaker Change: Thank you for your question.

Speaker Change: We've been discussing that in depth in our strategic planning discussions.

Speaker Change: This is an excellent exercise to help us envision or see many things what the company thinks about the future and one of the things is to review the capital structure, our own or third parties and the combination of both everything is being discussed within the strategic planning.

Operator: One of the things is to review the capital structure, our own or third parties, and a combination of both. Everything is being discussed within the strategic planning forum. Once it's been announced, this is one of the items that will be addressed, whether we're going to maintain it or not. Thank you, Fernando, Sylvia, and Caio for your questions. Regis from XP asks the next question. Thank you, Eduardo. Thank you for taking my question, and congratulations on the results. I would like to address three topics. One follow-up on extraordinary dividends. I would like to better understand what the debate is. Would you be looking at the cash position in late Q3, and then make a decision based on the cash position and the cash flow that you've already realized, or are you going to projecting into the future?

Fernando Melgarejo: One of the things is to review the capital structure, our own or third parties, and a combination of both. Everything is being discussed within the strategic planning forum. Once it's been announced, this is one of the items that will be addressed, whether we're going to maintain it or not.

Speaker Change: Forum once it's been announced this as one of the items that will be addressed whether we're going to maintain it or not.

Speaker Change: Thank you Fernando Sylvia in Cairo for your questions.

Eduardo De Nardi Ros: Thank you, Fernando, Sylvia, and Caio for your questions. Regis from XP asks the next question.

Speaker Change #100: Rajeev <unk> from XP.

Asks the next question.

Speaker Change #100: Thank you Eduardo.

Regis Cardoso: Thank you, Eduardo. Thank you for taking my question, and congratulations on the results. I would like to address three topics. One follow-up on extraordinary dividends. I would like to better understand what the debate is. Would you be looking at the cash position in late Q3, and then make a decision based on the cash position and the cash flow that you've already realized, or are you going to projecting into the future?

Speaker Change #100: You for taking my question.

Speaker Change #100: And congratulations on the results.

Speaker Change #101: I would like to address three topics.

Speaker Change #101: One follow up on extraordinary dividends I.

I would like to better understand what the debate is would you be looking at the cash position in late Q3.

Speaker Change #101: And then make a decision.

Speaker Change #101: Based on the cash position and the cash flow that you've already realized or are you going to.

Speaker Change #101: Prospecting into the future.

Speaker Change #102: Let me put it to a different in a different way, where it makes sense to make more than one extraordinary payment per year.

Operator: Let me put it in a different way. Would it make sense to make more than one extraordinary payment per year if you believe that once you report the full year's results for 2024, we had additional cash? This is my follow-up, the first follow-up question. My second question is simpler. What is the Búzios and Mero current status for 2026? I would like to understand whether you can anticipate, there's room to anticipate, or on the other hand, if there is any risk for delays given licensing or hiring labor and equipment. The third question is about the Campos Basin. What are the key projects for this 2025, 2026 timeframe? Sylvia. Let me still address the Campos Basin question. It remains a priority to revitalize it. Investments in this 2024, 2028 timeframe is BRL 22 billion.

Regis Cardoso: Let me put it in a different way. Would it make sense to make more than one extraordinary payment per year if you believe that once you report the full year's results for 2024, we had additional cash? This is my follow-up, the first follow-up question. My second question is simpler. What is the Búzios and Mero current status for 2026? I would like to understand whether you can anticipate, there's room to anticipate, or on the other hand, if there is any risk for delays given licensing or hiring labor and equipment. The third question is about the Campos Basin. What are the key projects for this 2025, 2026 timeframe?

Speaker Change #102: If you believe that once you report the full year's results for 'twenty 'twenty four we had additional cash.

Speaker Change #103: So this is my follow the first follow up question.

Speaker Change #103: My second question is simpler.

Speaker Change #103: What is the.

Speaker Change #103: The booth juice and marrow current status for.

Speaker Change #103: For 2026, I would like to understand whether you can anticipate theres room to anticipate or on the other hand, if there is any risk for delays given lessen.

Speaker Change #103: Our licensees or hiring labor.

And equipment and finally my question is about for the third question is about the Campos basin.

Speaker Change #103: What are the key projects for this 25 26.

Speaker Change #103: Time frame.

Speaker Change #103: Sylvia.

Eduardo De Nardi Ros: Sylvia.

Sylvia dos Anjos: Let me still address the Campos Basin question. It remains a priority to revitalize it. Investments in this 2024, 2028 timeframe is BRL 22 billion.

Speaker Change #103: Let me still address the Campos spacing question.

Speaker Change #103: Again, it remains a priority to revictual is it.

Speaker Change #103: Investments and is 24 28 timeframe is 22 billion.

Speaker Change #103: That includes new platforms about quota Barracuda card Zynga Zubar T. Mario Cataria, that's already there and the partnership.

Operator: That includes new platforms, Albacora, Barracuda, Carcará, Jubarte, Maria Quitéria, that is already there, and the partnership we have with BM-C-33 with Equinor. That also includes 200 wells scheduled for this 2024-2028 timeframe. Additional production can be resumed over 200,000 barrels in a short term in the 2025-2026 timeframe. This is what we consider for this period. Thank you, Sylvia. Fernando, about extraordinary payments, I would like to make it clear that this is a dynamic decision. What is the cash flow at the start, and what the capacity to generate more cash that can ensure our operations and our costs and investments, and of course, pay all our debt. We'll be considering everything. The cash position in T zero is not the only element there. We have to take into account short, mid, and long-term basis.

Sylvia dos Anjos: That includes new platforms, Albacora, Barracuda, Carcará, Jubarte, Maria Quitéria, that is already there, and the partnership we have with BM-C-33 with Equinor. That also includes 200 wells scheduled for this 2024-2028 timeframe. Additional production can be resumed over 200,000 barrels in a short term in the 2025-2026 timeframe. This is what we consider for this period.

Speaker Change #103: We have with M C thirty-three with ignore and that also includes 200 wells.

Speaker Change #103: Scheduled for this 24 28 timeframe.

Additional production.

Speaker Change #103: Can be resumed over 200000 barrels and a short term in the 'twenty five 'twenty six timeframe. This is what we consider for this period.

Thank you Sylvia.

Eduardo De Nardi Ros: Thank you, Sylvia. Fernando.

Speaker Change #103: Fernando.

Speaker Change #103: About extraordinary payments.

Fernando Melgarejo: About extraordinary payments, I would like to make it clear that this is a dynamic decision. What is the cash flow at the start, and what the capacity to generate more cash that can ensure our operations and our costs and investments, and of course, pay all our debt. We'll be considering everything. The cash position in T zero is not the only element there. We have to take into account short, mid, and long-term basis.

Speaker Change #103: I would like to make it clear.

Speaker Change #103: So this is a dynamic decision.

What is the cash.

Speaker Change #103: Cash flow at the start and what the capacity.

Speaker Change #103: To generate more cash that Ken.

Speaker Change #103: Insure our operations and our costs and investments.

Speaker Change #103: And of course pay all our debt.

Speaker Change #103: We will be considering everything.

Speaker Change #103: The cash position in T zero is not the only element there.

Speaker Change #103: So we need.

Speaker Change #103: We have to take into account short mid and long term basis.

Speaker Change #103: But.

Having a background in treasury.

Operator: Having a background in treasury, ideally, you have a very streamlined cash and at the same time have flexibility. If you have any stress scenario, I do have alternatives to replenish that cash if needed. Thank you, Fernando. Thank you, Regis. Conrado from Safra, over to you. Good afternoon. Thank you for taking my questions. Let me talk about investments in renewables, wind, and solar projects. They don't seem to be happening at the speed that we once expected. Do you agree? Or is it because timing is uncertain because of the very nature of those projects? Would that change your strategy in some way, maybe to start with greenfield projects 100% run by Petrobras? And another question about fertilizers, about the FAFENs in Bahia and Sergipe. Are you still negotiating that? Are you going to adopt a tolling model by reviewing some of those conditions?

Fernando Melgarejo: Having a background in treasury, ideally, you have a very streamlined cash and at the same time have flexibility. If you have any stress scenario, I do have alternatives to replenish that cash if needed.

Speaker Change #103: Ideally you have a very streamlined cash.

Speaker Change #103: And at the same time have flexibility.

Speaker Change #103: If you have any stress scenario.

Speaker Change #103: Hi.

Speaker Change #103: To have alternatives to replenish that cash if needed.

Speaker Change #104: Thank you Fernando Thank you Register Colorado from suffer.

Eduardo De Nardi Ros: Thank you, Fernando. Thank you, Regis. Conrado from Safra, over to you.

Speaker Change #105: Over to you.

Conrado Vegner: Good afternoon. Thank you for taking my questions. Let me talk about investments in renewables, wind, and solar projects. They don't seem to be happening at the speed that we once expected. Do you agree? Or is it because timing is uncertain because of the very nature of those projects? Would that change your strategy in some way, maybe to start with greenfield projects 100% run by Petrobras? And another question about fertilizers, about the FAFENs in Bahia and Sergipe. Are you still negotiating that? Are you going to adopt a tolling model by reviewing some of those conditions? Is there room for other alternatives? These are my questions.

Speaker Change #106: Good afternoon. Thank you for taking my questions.

Speaker Change #107: Let me talk about investments in renewables.

Speaker Change #107: Wind and solar projects.

Speaker Change #107: <unk> seem to be happening at the speed that we once expected.

Do you agree.

Or is it because time.

Speaker Change #107: Is.

Speaker Change #107: Uncertain because of the very nature of those projects.

Speaker Change #107: Would that change your strategy in some way maybe to start with Greenfield projects, 100% run by Petrobras.

Speaker Change #108: And another question about fertilizers fertilizers about the pop ins in buyer.

Speaker Change #108: In Sergipe are still negotiating that.

Speaker Change #109: Are you going to adopt a totally model by reviewing some of those conditions or is there room for.

Mauricio Tolmasquim: Is there room for other alternatives? These are my questions. Thank you, Conrado. Mauricio Tolmasquim, and then William França will address the question about fertilizers. Well, let me address the renewables, wind and solar. There's a very known fact. It's coming to an end now. Up until now, we had an oversupply of energy. You have way more projects than demand. Prices, therefore, came down. Some projects were reduced by the government, by ANEEL, and the economy is picking up again, so that price curve is coming back up again. In order to approve a project, we have to have positive NPV. You have to compensate that. We have the CapEx, we have possible partners. We do have four companies still negotiating that. The projects are out there, but we have to find the ideal situation, the ideal scenario before we approve those projects.

Speaker Change #109: Other alternatives. So these are my questions.

Speaker Change #110: Thank you Conrado Tomas skiing.

Eduardo De Nardi Ros: Thank you, Conrado. Mauricio Tolmasquim, and then William França will address the question about fertilizers.

Speaker Change #111: And then William.

Speaker Change #111: To address the question about fertilizers.

Mauricio Tolmasquim: Well, let me address the renewables, wind and solar. There's a very known fact. It's coming to an end now. Up until now, we had an oversupply of energy. You have way more projects than demand. Prices, therefore, came down. Some projects were reduced by the government, by ANEEL, and the economy is picking up again, so that price curve is coming back up again. In order to approve a project, we have to have positive NPV. You have to compensate that. We have the CapEx, we have possible partners. We do have four companies still negotiating that. The projects are out there, but we have to find the ideal situation, the ideal scenario before we approve those projects.

Speaker Change #111: Well, let me address the renewables wind and solar.

Speaker Change #111: Theres, a very known effect.

Speaker Change #111: It's coming to an end now but up until now.

Speaker Change #111: We had an oversupply of energy do you have way more projects than demand.

Speaker Change #111: Prices, therefore came down.

Speaker Change #111: Some projects.

Speaker Change #111: Were reduced.

Speaker Change #111: By the government by Aneel.

And the economy is picking up again, so that price curve is coming back up again.

Speaker Change #111: In order to.

Speaker Change #111: Approve a project we have to have.

Speaker Change #111: Positive.

Speaker Change #111: N P V.

Speaker Change #111: You have to compensate that.

Speaker Change #111: So we have the capex.

Speaker Change #111: We have.

Speaker Change #111: Possible partners.

We do have.

Speaker Change #111: For companies still negotiating debt the projects out there but.

Speaker Change #111: But we have to find the ideal situation would be ideal scenario before we approve those projects.

Speaker Change #111: I know that those of you then monitor prices.

Operator: I know that those of you that monitor prices have seen that price change. About running by Petrobras 100%, I don't think we're considering that because the Petrobras cost is somewhat higher to operate renewables. Partnerships, therefore, are the way to go. We might even consider looking at projects that are already in operations. That would smooth things out, so we would put the greenfield projects in the back burner. That's a possibility that is being considered as we speak. William. Oh, I'm sorry. It's Conrado. Thank you for your question. We've been talking with the Unigel group. We do have some possibilities that are being considered. It has to be a win-win situation. It has to make sense, strategically speaking. We have 8 million tons of urea and we're not producing anything.

Mauricio Tolmasquim: I know that those of you that monitor prices have seen that price change. About running by Petrobras 100%, I don't think we're considering that because the Petrobras cost is somewhat higher to operate renewables. Partnerships, therefore, are the way to go. We might even consider looking at projects that are already in operations. That would smooth things out, so we would put the greenfield projects in the back burner. That's a possibility that is being considered as we speak.

Speaker Change #112: I've seen that price change.

Speaker Change #112: About running by Petrobras is 100% I don't think we're considering that because the Petrobras cost is somewhat higher.

To operate renewables.

Speaker Change #112: Partnerships therefore are the.

Speaker Change #112: Way to go.

Speaker Change #112: We might even consider.

Speaker Change #112: Looking at projects that are already in operations.

Speaker Change #113: That would.

Speaker Change #113: Smooth things out.

Speaker Change #113: So we would.

Put the greenfield projects in the backburner, that's a possibility that is being considered as we speak.

Speaker Change #113: William.

Eduardo De Nardi Ros: William.

William França da Silva: Oh, I'm sorry. It's Conrado. Thank you for your question. We've been talking with the Unigel group. We do have some possibilities that are being considered. It has to be a win-win situation. It has to make sense, strategically speaking. We have 8 million tons of urea and we're not producing anything.

Speaker Change #114: Oh, I'm sorry, Colorado. Thank you for your question.

Speaker Change #114: We've been talking with the MS Joan crop group.

Speaker Change #114: We do have some possibilities that are being considered it has to be a win win situation.

Speaker Change #114: It has to make sense strategically speaking.

Speaker Change #114: We have 8 million tons of urea and we are not producing.

Speaker Change #114: Anything.

Our fan by year end, so GP and those two units.

William França da Silva: FAFEN Bahia and Sergipe, in those two units, our capacity is 1.5 to 2 million tons of urea. We're still talking about it. It has to have some economic feasibility and fit within Petrobras strategy as far as the fertilizer strategy is concerned. The answer is yes, we're discussing with them. Thank you, Conrado, for your questions. Rodolfo from JP Morgan is up next. Over to you, Rodolfo.

Speaker Change #114: Our capacity is 1.5 dollars 2 million tons of urea.

Speaker Change #115: We're still talking about it has to have some economic feasibility and fit within Petrobras strategy as far as the fertilizer strategy is concerned. So the answer is yes. We are discussing with them. Thank you can rado for your questions Rodolfo from J P. Morgan is up.

William França da Silva: Thank you, Conrado, for your questions. Rodolfo from JP Morgan is up next. Over to you, Rodolfo.

Speaker Change #115: Next over to Rudolph foe.

Speaker Change #117: Hi folks.

Speaker Change #118: Most of my questions actually have already been answered so I have just one.

Fernando Melgarejo: Hi, folks. Most of my questions actually have already been answered, so I have just one. We've been speaking with investors at length, and everyone is increasingly concerned about the price of oil. Of course, Petrobras has a very low cost. I'd like to take the opportunity since we have the company board and senior management here. When looking at the topic of oil stress, what does Petrobras have planned to react to a potentially more aggressive oil scenario? Thank you. Rodolfo? Hi. Hi, Rodolfo. Thank you for your question. I think some important points we need to bring here can show the resiliency of our portfolio.

Rodolfo de Angele: Hi, folks. Most of my questions actually have already been answered, so I have just one. We've been speaking with investors at length, and everyone is increasingly concerned about the price of oil. Of course, Petrobras has a very low cost. I'd like to take the opportunity since we have the company board and senior management here. When looking at the topic of oil stress, what does Petrobras have planned to react to a potentially more aggressive oil scenario?

Speaker Change #119: We've been speaking with investors at length and everyone is increasingly concerned about the price of oil and of course, Petrobras has a very low cost, but I'd like to take the opportunity since we have the company board.

Speaker Change #119: And senior management here.

Speaker Change #119: When looking at the topic of oil stressed what does Petrobras have planned to react to a potentially more aggressive the oil scenario.

Speaker Change #120: Thank you Rodolfo.

Fernando Melgarejo: Thank you. Rodolfo? Hi. Hi, Rodolfo. Thank you for your question. I think some important points we need to bring here can show the resiliency of our portfolio.

Speaker Change #121: Hi, Hi, Rodolfo. Thank you for your question.

Speaker Change #121: I think some important points, we need to bring here.

Speaker Change #121: Can show the resiliency of our portfolio when we look at a negative scenario.

Fernando Melgarejo: When we look at a negative scenario, I know resiliency is not a great word to use, but in that situation we use $45 a barrel, and even in that case, NPV needs to be at least greater than zero. Today, at seventy-five, we have a significant amount of headroom and all of our planning. Now, I should mention, we run hundreds of scenarios to investigate whether or not our plan is a good fit. One of many of these plans include drops in the price of the dollar. It's difficult to study any of these by themselves. Now, if we look at conjugate pairs of scenarios and the drop, we are looking at a $4 to 5 billion a year drop in yearly operating revenue. The world moves. The world keeps moving.

Speaker Change #121: Resiliency is not a.

Speaker Change #122: Right word to use but.

In that situation, we use $45 a barrel and even in that case.

Speaker Change #122: N P V needs to be at least greater than zero.

Speaker Change #122: So today at <unk> 75, we have a significant amount of headroom.

Speaker Change #122: And all of our planning now I should mention we'd run hundreds of scenarios to investigate whether or not our plan is a good fit.

Speaker Change #122: And one of our many of these plans include drops in the price of the dollar.

Speaker Change #122: But it's difficult to study any of these <unk>.

Speaker Change #122: By themselves.

Speaker Change #122: Now if we look at.

Speaker Change #122: Conjugate pairs of the scenarios and the drop.

Speaker Change #122: We are looking at a four to 5 billion dollar a year drop in yearly operating revenue, but the world moves of the world keeps moving.

There are many different factors to take into consideration for the aggregate value.

Fernando Melgarejo: There are many different factors to take into consideration for the aggregate value. We do run those types of scenarios. Remember that our resiliency scenario is 45, and it does need to pass that test. Thank you, Fernando. Thank you, Rodolfo. We have just two more questions from Vicente, from Bradesco. Hi, Vicente. Hi, Eduardo. Thanks to everyone. I have two questions. I'd like to go back on to the question of inflation for equipment and services. In the last couple of months, 12 months, we looked at topside numbers and prices went up by 150%, which was quite worrying. Today we are competing with Guyana, Namibia, and Asia. There's a lot of onshore as well. Petrobras has a matter of scale and long-term loyalty with the different shipyards.

Speaker Change #122: But we do run those types of scenarios.

Speaker Change #122: And remember that our resiliency scenario is 45 and it does need to pass that test.

Speaker Change #123: Thank you Fernando Thank you Rodolfo.

Eduardo De Nardi Ros: Thank you, Fernando. Thank you, Rodolfo. We have just two more questions from Vicente, from Bradesco. Hi, Vicente.

Speaker Change #123: We have <unk>.

Speaker Change #123: Just two more questions from the center from Bradesco.

Speaker Change #123: I have a center.

Speaker Change #124: Hey, Eduardo Thanks to everyone I have two questions I'd like to go back on to the question of inflation for equipment and services.

[Analyst] (Banco Bradesco): Hi, Eduardo. Thanks to everyone. I have two questions. I'd like to go back on to the question of inflation for equipment and services. In the last couple of months, 12 months, we looked at topside numbers and prices went up by 150%, which was quite worrying. Today we are competing with Guyana, Namibia, and Asia. There's a lot of onshore as well. Petrobras has a matter of scale and long-term loyalty with the different shipyards.

Speaker Change #124: In the last couple of months 12 months, we looked at topside numbers and prices went up by 150% which was quite worrying.

Speaker Change #124: Today, we are competing with Guyana in Namibia in Asia, There's a lot of onshore as well.

Speaker Change #124: Petrobras has a matter of scale and long term loyalty with the different shipyards.

Speaker Change #124: So.

Speaker Change #125: How does that touch on the topic of Capex and inflation.

Fernando Melgarejo: How does that touch on the topic of CapEx and inflation, especially considering double-digit inflation at the $2 billion level? Next, I'd like to go back to Fernando and the CARF. You mentioned that there is probably $3 billion more to arrive by the next quarter. Does that include payouts to go back to the partners, to the shareholders? Has that been addressed in Q3? Sure. We'll begin with Fernando and then Renata.

[Analyst] (Banco Bradesco): How does that touch on the topic of CapEx and inflation, especially considering double-digit inflation at the $2 billion level? Next, I'd like to go back to Fernando and the CARF. You mentioned that there is probably $3 billion more to arrive by the next quarter. Does that include payouts to go back to the partners, to the shareholders? Has that been addressed in Q3?

Speaker Change #125: Especially considering double digit inflation at the $2 billion level.

Speaker Change #125: And next I'd like to go back to Fernando N D. C. A R. F you mentioned that.

There is.

Speaker Change #126: Probably three more billion to arrive by the next quarter does that include the payouts to go back to the partners.

Speaker Change #127: To the shareholders.

Speaker Change #128: Has that been addressed in the third quarter.

Eduardo De Nardi Ros: Sure. We'll begin with Fernando and then Renata.

Speaker Change #129: Sure, we'll begin with Fernando and then Renata.

Speaker Change #130: Could you repeat the question.

Speaker Change #130: He asked about the the C. A R F.

Operator: Could you repeat the question?

Fernando Melgarejo: Could you repeat the question?

Fernando Melgarejo: He asked about the CARF.

Eduardo De Nardi Ros: He asked about the CARF.

Speaker Change #131: Okay, Yes, yes, I understand sorry about that.

Operator: Okay. Yes. Yes, I understand. Sorry about that. Well, there are two effects regarding the CARF. First is reimbursing the partners. Initially, we had planned BRL 2.6 billion. Of that, I'm talking about BRL here. Of that, BRL 200 million have not yet been recognized, leaving BRL 2.4 billion that have been recognized from June to September.

Fernando Melgarejo: Okay. Yes. Yes, I understand. Sorry about that. Well, there are two effects regarding the CARF. First is reimbursing the partners. Initially, we had planned BRL 2.6 billion. Of that, I'm talking about BRL here. Of that, BRL 200 million have not yet been recognized, leaving BRL 2.4 billion that have been recognized from June to September.

Speaker Change #131: Well.

Speaker Change #131: There are two effects rigor.

Speaker Change #131: Regarding the Sierra at first is reimbursing. The partners. Initially we had the planned $2 6 billion.

Speaker Change #131: Of that.

Speaker Change #131: I'm talking about BRL here of that 200 million have not yet been.

Speaker Change #132: <unk> recognized.

Speaker Change #132: Leaving $2 4 billion Reals that have been recognized from June to September.

Speaker Change #132: And of those 1.9 have already become cash that was effectively received by Petrobras in the year to date in the current year.

Fernando Melgarejo: Of those, 1.9 have already become cash that was effectively received by Petrobras in the year to date, in the current year. There was a reduction in income tax and social requirements in the order of 4.2 because our fiscal basis was reduced by the value of that expense. We imagine that in the next, turn, go around, that's going to drop by some $500 million, BRL 3 billion in Q1 2025. Just before I pass on to Rodolfo, I mentioned the revenue. Of every $10 in reduction, we have BRL 5 billion, but that's about operating cash. Okay, just a correction. Right. All right, Vicente. There is not one single reason for that increase. It ranges from projects of ours that are more complex, and that has a lot of. We've been doing lots of homework.

Speaker Change #132: And there was a reduction in the income tax and social requirements in the order of four point too because our fiscal basis was reduced by the value of that expense and we imagine that in the next.

Speaker Change #132: <unk> go around that's going to drop by some $500 million 3 billion Reals in Q1 25.

Speaker Change #132: And just before I pass onto her doleful.

Speaker Change #133: I mentioned the revenue of every $10 in reduction we have 5 billion, but that's about operating cash okay. Just a correction.

Speaker Change #132: Yeah.

Renata Baruzzi: Right. All right, Vicente. There is not one single reason for that increase. It ranges from projects of ours that are more complex, and that has a lot of. We've been doing lots of homework.

Speaker Change #132: Right Alright the center.

There is not one single reason for that increase it ranges from projects of ours that are more complex and that has a lot of what we've been doing lots of homework for back to the drawing board running benchmark and critical analysis on our projects.

Fernando Melgarejo: We're back to the drawing board, running benchmarks and critical analyses on our projects. Another reason was the cost of feedstock and inputs. The nickel went up to ridiculous levels because of the war in Ukraine. Another aspect that we've been discussing at length with the market, and as I mentioned here, is I've been recently inspecting our projects in Asia two weeks ago, and I had the chance to speak to many of our vendors, some of whom were actually not even supplying us anymore for various different reasons. All of them, every single one, with no exception, showed an interest in working with us and with partners in Brazil. We always put that as a condition that we will not do without. We insist on our vendors working with partners in Brazil. We have an MOU signed in that sense.

Renata Baruzzi: We're back to the drawing board, running benchmarks and critical analyses on our projects. Another reason was the cost of feedstock and inputs. The nickel went up to ridiculous levels because of the war in Ukraine. Another aspect that we've been discussing at length with the market, and as I mentioned here, is I've been recently inspecting our projects in Asia two weeks ago, and I had the chance to speak to many of our vendors, some of whom were actually not even supplying us anymore for various different reasons. All of them, every single one, with no exception, showed an interest in working with us and with partners in Brazil. We always put that as a condition that we will not do without. We insist on our vendors working with partners in Brazil. We have an MOU signed in that sense.

Speaker Change #134: Another reason was the cost of feedstock and inputs there Nicole went up.

Speaker Change #134: A to ridiculous levels because of the war in Ukraine.

Speaker Change #134: Another aspect that we've been discussing at length with the market and as I mentioned here is I've been recently inspecting our projects in Asia, two weeks ago, and I had the chance to speak to many of our vendors.

Speaker Change #134: Some of whom were actually not even in supplying us anymore for various different reasons and all of them every single one with no exception.

Speaker Change #134: <unk> and interest in working with us and with partners in Brazil, and we always put that as a condition that we will not do without.

Speaker Change #134: We insist on our vendors working with the <unk>.

Partners in Brazil, So we have an Mou signed in that sense, we've been discussing with the market to understand what they need we've been expanding our basis or our database of partners as well and are focusing on our projects to that's basically it we're in constant talks with the market to understand everything that's.

Fernando Melgarejo: We've been discussing with the market to understand what they need. We've been expanding our basis, our database of partners as well, and focusing on our projects too. That's basically it. We're in constant talks with the market to understand everything that's going on. Thank you, Renata, Fernando, and Vicente for your questions. Now with Vicente's questions over, we conclude our Q&A session. We would like to thank you all truly for your questions. They really enrich our discussions with investors. Today, we had over 1,000 people connected during this webcast, and everyone is all the richer for the questions you ask. If there are any additional questions, we'll be happy to answer them through our IR team, who will be at your disposal. For some final remarks, we have Fernando.

Speaker Change #134: Going on.

Speaker Change #134: Yeah.

Eduardo De Nardi Ros: Thank you, Renata, Fernando, and Vicente for your questions. Now with Vicente's questions over, we conclude our Q&A session. We would like to thank you all truly for your questions. They really enrich our discussions with investors. Today, we had over 1,000 people connected during this webcast, and everyone is all the richer for the questions you ask. If there are any additional questions, we'll be happy to answer them through our IR team, who will be at your disposal. For some final remarks, we have Fernando.

Speaker Change #135: Thank you Renata Fernando and the center for your questions.

Speaker Change #135: And now with the centers questions over we conclude our Q&A session. We would like to thank you all truly for your questions. They really enrich our discussions with investors today, we had over a thousand people connected during this webcast and everyone is.

Speaker Change #135: All the richer or the questions you ask if there are any additional questions, we'll be happy to answer them through our IR team, who will be at your disposal for some final remarks.

Speaker Change #136: We have Fernando <unk>.

Speaker Change #137: I just like to thank everyone on behalf of Petrobras to all of you for your commitment to joining us and with regard to your technical questions to our Investor Relations team is always at your disposal. If you have any questions at all as Eduardo mentioned, we're always here and available.

Fernando Melgarejo: I'd just like to thank everyone on behalf of Petrobras to all of you for your commitment to joining us and with regard to your technical questions too. Our investor relations team is always at your disposal. If you have any questions at all, as Eduardo mentioned, we're always here and available to answer them. We would be happy to take your questions. Just reach out to us. Thank you once again for joining us in another webcast. This event is already available at the Petrobras investor relations site, and we will shortly make available the audio and the live replay. Thanks to all you investors. Have a great afternoon and a great weekend. See you next time.

Speaker Change #137: To answer them.

Speaker Change #137: We would be happy to.

Speaker Change #137: Take your questions just reach out to us and thank you once again for joining us in another webcast.

Speaker Change #137: This event is already available at the Petrobras Investor Relations site and we will.

Speaker Change #137: Shortly.

Speaker Change #137: <unk> available the audio and the live replay. Thanks see all your investors have a great afternoon, and a great weekend to you next time.

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