NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
Consolidated
|
|
Discount
rate
|
Rate
of change in medical and hospital costs
|
|
Pension
plan
|
Health
care plan
|
Health
care plan
|
|
+
1 p.p.
|
-
1 p.p.
|
+
1 p.p.
|
-
1 p.p.
|
+
1 p.p.
|
-
1 p.p.
|
Actuarial
obligation
|
(12,346)
|
15,924
|
(3,484)
|
4,412
|
4,455
|
(3,386)
|
Service
cost and interest
|
(24)
|
1
|
(188)
|
240
|
593
|
(421)
|
|
|
19.5.
|
Petros
3 Plan (PP-3)
|
On
October 1, 2020, the Board of Directors approved the submission of the PP-3 for analysis by the Secretaria de Coordenação
e Governança das Empresas Estatais (SEST) and to the Superintendência Nacional de Previdência Complementar
(PREVIC), after adjustments to the Plan's regulations.
PP-3
will be a pension plan option, in the defined contribution modality, for voluntary and exclusive migration to participants and
beneficiaries of the PPSP-R and PPSP-NR plans, both post-70.
With
the implementation, after obtaining a successful conclusion of the study, the Company will carry out an actuarial review of origin
plans to determine the effect of the cost of the past service, resulting from the reduction of the plan, with recognition in the
Statement of Income of the year.
On
January 27, 2021, PREVIC and SEST approved the creation of the PP-3 with start-up scheduled for the second quarter of 2021.
Accounting
practice
Obligations
with defined benefit and pension plans and healthcare plans are provisioned based on an actuarial calculation prepared annually
by an independent actuary, according to the projected credit unit method, net of plan's guarantee assets, when applicable. The
projected unit credit method considers each period of service as a triggering event for an additional benefit unit, which are
accumulated to calculate the final obligation, and considers certain actuarial assumptions that include: demographic and economic
estimates, estimates of medical costs, as well as historical data on employee expenses and contributions.
The
service cost is recognized in the Statement of Income and comprises: i) current service cost, which is the increase in the present
value of the defined benefit obligation resulting from the service provided by the employee in the current period; ii) past service
cost, which is the change in the present value of the defined benefit obligation for service provided by employees in previous
periods, resulting from a change (introduction, changes or the cancellation of a defined benefit plan) or a reduction (a significant
reduction, by the entity, in the number of employees covered by a plan); and iii) any gain or loss on settlement.
Net
interest on the net value of the defined benefit liability is the change, during the period, in the net value of the defined benefit
liability resulting from the passage of time. Such interest is recognized in the Statement of Income.
Remeasurements
of the net value of a defined benefit liability are recognized in Shareholders’ Equity, in other comprehensive income, and
comprise: i) actuarial gains and losses and ii) return on plan assets, excluding amounts considered in net interest on the liability
value, net of defined benefit asset.
The
company also contributes to defined contribution plans, the percentages of which are based on the payroll, and these contributions
are taken to income when incurred.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
20.
|
Provisions
for legal proceedings
|
|
20.1.
|
Provisions
for legal proceedings, judicial deposits and contingent liabilities
|
The
Company recognizes provisions based on the best estimate of the costs of proceedings for which it is probable that an outflow
of resources embodying economic benefits will be required and that can be reliably estimated. These proceedings mainly include:
|
·
|
Labor
claims, in particular: (i) opt-out claims related to a review of the methodology by which
the minimum compensation based on an employee's position and work schedule (Remuneração
Mínima por Nível e Regime - RMNR) is calculated; and (ii) actions of
outsourced employees;
|
|
·
|
Tax
claims including: (i) claims relating to Brazilian federal tax credits applied that were
disallowed; (ii) alleged misappropriation of VAT (ICMS) tax credits; and (iii) fines
for non-compliance with accessory tax obligations;
|
|
·
|
Civil
claims relating to: (i) lawsuits related to contracts; (ii) royalties and special participation
charges, including royalties over shale extraction; and (iii) penalties applied
by ANP relating to measurement systems.
|
|
·
|
Environmental
claims specially regarding: (i) compensation and fines relating to an environmental accident
in the State of Paraná in 2000; and (ii) fines relating to the Company’s
offshore operation.
|
Provisions
for legal proceedings are set out as follows:
|
Consolidated
|
Parent
Company
|
Current
and Non-current liabilities
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
Labor
claims
|
3,667
|
3,608
|
3,401
|
3,374
|
Tax
claims
|
2,538
|
1,865
|
2,459
|
1,788
|
Civil
claims
|
3,706
|
6,138
|
2,963
|
5,786
|
Environmental
claims
|
1,516
|
935
|
1,478
|
935
|
Total
|
11,427
|
12,546
|
10,301
|
11,883
|
|
Consolidated
|
Parent
Company
|
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
Opening
Balance
|
12,546
|
28,695
|
11,883
|
22,257
|
Additions,
net of reversals
|
2,494
|
4,449
|
2,126
|
4,273
|
Use
of provision
|
(3,814)
|
(21,050)
|
(3,770)
|
(16,095)
|
Accruals
and charges
|
104
|
1,492
|
62
|
1,448
|
Transfer
to assets held for sale
|
−
|
(1,136)
|
−
|
−
|
Others
|
97
|
96
|
−
|
−
|
Closing
balance
|
11,427
|
12,546
|
10,301
|
11,883
|
In
preparing the financial statements for the period ended December 31, 2020, the company considered all available information related
to the processes in which it is a party involved in making the estimates of the amounts of the obligations and the probability
of outflow of funds.
In
2020, the reduction in liabilities arises mainly from changes in the following cases: (i) use of provision amounting to R$ 2,991
related to civil claims involving contractual issues, mainly due to agreements; (ii) use of provision amounting to R$ 331 referring
to the agreement approved by the STF in claim for compensation of loss of income in a lawsuit filed by Sergás and the State
of Sergipe; mainly offset by: (iii) R$ 509 in the provision for civil litigation involving contractual matters; (iv) R$ 390 in
the provision for lawsuits involving a refinery engineering contract; (v) R$ 508 for the transfer to probable loss in lawsuits
involving environmental fines relating to the company's operation; (vi) R$ 181 for the transfer to probable loss in an VAT Tax
collection action in operations of refining internal consumption; and (vii) R$ 477 in fines for non-compliance with accessory
state tax obligations.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
The
company makes deposits at the judicial stage in order to suspend the enforceability of the tax debt and allow the taxpayer to
maintain its fiscal regularity. Judicial deposits are presented according to the nature of the corresponding causes:
|
Consolidated
|
Parent
Company
|
Non-current
assets
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
Tax
|
26,785
|
23,885
|
26,715
|
23,809
|
Labor
|
4,317
|
4,258
|
4,137
|
4,085
|
Civil
|
5,688
|
4,361
|
5,674
|
4,347
|
Environmental
|
588
|
645
|
566
|
620
|
Others
|
460
|
49
|
395
|
−
|
Total
|
37,838
|
33,198
|
37,487
|
32,861
|
|
|
Consolidated
|
Parent
Company
|
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
Opening
Balance
|
33,198
|
26,003
|
32,861
|
24,476
|
Additions
|
4,672
|
7,942
|
4,618
|
7,796
|
Use
|
(441)
|
(739)
|
(393)
|
(685)
|
Financial
accruals and charges
|
431
|
1,300
|
427
|
1,274
|
Transfer
to assets held for sale
|
−
|
(1,305)
|
−
|
−
|
Others
|
(22)
|
(3)
|
(26)
|
−
|
Closing
balance
|
37,838
|
33,198
|
37,487
|
32,861
|
In
2020, the company made judicial deposits in the amount of R$ 4,672, including: (i) R$ 1,446 related to the chartering of platforms
due to the legal dispute related to the withholding income tax; (ii) R$ 1,469 referring to IRPJ and CSLL for not adding the income
of subsidiaries and associated companies domiciled abroad to the IRPJ and CSLL calculation base; (iii) R$ 1,130 referring to the
unification of fields (Cernambi, Tupi, Tartaruga Verde and Tartaruga Mestiça); (iv) R$ 421 deposit
as guarantee for a ship seizure operation; and (v) R$ 359 related to the collection of IRPJ and CSLL
due to the deduction of expenses for the contribution to the Petros Plan.
|
20.3.
|
Contingent
liabilities
|
Legal
proceedings that constitute present obligations whose outflow of resources is not probable or for which it is not possible to
make a sufficiently reliable estimate of the amount of the obligation, as well as those that do not constitute present obligations,
are not recognized, but are disclosed, unless that the possibility of outflow of resources be remote.
The
contingent liabilities, plus interest and monetary restatement, estimated for the lawsuits on December 31, 2020, whose likelihood
of loss is considered possible, are shown in the table below:
|
Consolidated
|
Nature
|
12.31.2020
|
12.31.2019
|
Tax
|
127,375
|
130,499
|
Labor
|
42,505
|
39,235
|
Civil
- General
|
24,012
|
24,097
|
Civil
- Environmental
|
7,613
|
6,352
|
Total
|
201,505
|
200,183
|
|
|
The
tables below detail the main causes of tax, labor, civil and environmental nature, whose expectations of losses are classified
as possible.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Description
of tax matters
|
Estimate
|
|
12.31.2020
|
12.31.2019
|
Plaintiff:
Secretariat of the Federal Revenue of Brazil
|
|
|
1)
Withholding income tax (IRRF), Contribution of Intervention in the Economic Domain (CIDE), Social Integration Program (PIS)
and Contribution to Social Security Financing (COFINS) on remittances for payments of vessel charters.
|
|
|
Current
status: The claim about the incidence of withholding income tax (Imposto de Renda Retido na Fonte- IRRF), occurred from
1999 to 2002, involves the legality of the normative rule issued by the Federal Revenue of Brazil, which ensured no taxation
over those remittances. The Company considers the likelihood of loss as possible, since there are decisions from Superior
Courts favorable to the understanding of the Company, and will continue to defend its opinion.
The
other claims, concerning CIDE and PIS/COFINS, involve lawsuits in different administrative and judicial stages, for which
the Company understands there is a possible likelihood of loss, since there are legal predictions in line with the position
of the Company.
|
49,536
|
46,884
|
2)
Income from foreign subsidiaries and associates located outside Brazil not included in the computation of taxable income (IRPJ
and CSLL).
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial stages. The Company considers the likelihood
of loss as possible, since there are decisions from Superior Courts favorable to the understanding of the Company.
|
21,340
|
21,057
|
3)
Requests to compensate federal taxes disallowed by the Brazilian Federal Tax Authority.
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial stages. The company obtained a final decision
at CARF, canceling part of the debts.
|
4,057
|
4,106
|
4)
Incidence of social security contributions over contingent bonuses paid to employees.
|
|
|
Current
status: Awaiting defense judgment and appeals at the administrative and judicial levels.
|
4,222
|
4,000
|
5)
Collection of Contribution of Intervention in the Economic Domain (CIDE) on transactions with fuel retailers and service stations
protected by judicial injunctions determining that fuel sales were made without gross-up of such tax.
|
|
|
Current
status: This claim involves lawsuits in different judicial stages.
|
2,358
|
2,333
|
6)
Deduction from the basis of calculation of taxable income (income tax - IRPJ and social contribution - CSLL) of the amounts
paid as an incentive to renegotiate the Petros Plan (active and inactive employees) and past service.
|
|
|
Current
status: The claim involves lawsuits in different administrative and judicial stages.
|
2,431
|
2,160
|
Plaintiff:
Municipal governments of the cities of Anchieta, Aracruz, Guarapari, Itapemirim, Marataízes, Linhares, Vila Velha and
Vitória
|
|
|
7)
Collection of the tax levied on services provided in maritime waters (ISSQN), in favor of some municipalities in the State
of Espírito Santo, on the grounds that the service was carried out in their "respective maritime territories".
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial stages.
|
5,490
|
5,039
|
Plaintiff:
States of SP, RJ, BA, PA, AL, MA, PB and SE Finance Departments
|
|
|
8)
VAT (ICMS) and VAT credits on internal consumption of bunker fuel and marine diesel, destined to chartered vessels.
|
|
|
Current
status: There are notices issued by the States, some of which are still discussed at the administrative level and others at
the judicial level. The exposure was reduced due to the inclusion of VAT Tax debts in state amnesty program of Rio de Janeiro.
|
1,993
|
4,799
|
Plaintiff:
States of RJ, AL and BA Finance Departments
|
|
|
9)
VAT (ICMS) on dispatch of liquid natural gas (LNG) and C5+ (tax document not accepted by the tax authority), as well as challenges
on the rights to this VAT tax credit.
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial stages.
|
4,093
|
4,426
|
Plaintiff:
States of RJ, AL, AM, PA, BA, GO, MA, SP and PE Finance Departments
|
|
|
10)
Alleged failure to write-down VAT (ICMS) credits related to exempted or non-taxable sales made by the Company and its customers.
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial stages.
|
4,249
|
4,265
|
Plaintiff:
States of RJ, BA, PE, SE and AM Finance Departments
|
|
|
11)
The plaintiff alleges that the transfers between branches, especially in RJ, without segregating VAT
(ICMS), under the special regime, reduced the total credits of the central department.
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial stages.
|
4,218
|
3,986
|
Plaintiff:
States of SP, SC and RS Finance Departments
|
|
|
12)
Collection of VAT (ICMS) related to natural gas imports from Bolivia, alleging that these states were the final destination
(consumers) of the imported gas, instead of MS State.
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial stages, as well
as three civil lawsuits in the Federal Supreme Court. In the judgment of a lawsuit filed by the State of MS against the States
of SP, SC and RS in the STF, the State of MS was considered the legitimate creditor of the tax. After the Supreme Court decision,
the expectation was changed to remote loss. This decision has not yet become final, and an appeal period is in progress for
the States of SP, SC and RS.
|
−
|
2,581
|
Plaintiff:
States of RJ and PR Finance Departments
|
|
|
13)
Additional VAT (ICMS) due to differences in rates on jet fuel sales to airlines in the domestic market, among other questions
relating to the use of tax benefits.
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial stages. In 2020,
the federal and state laws of RJ recognized the remission/amnesty on these debts. As a result, the loss expectation is deemed
remote in RJ's lawsuits.
|
110
|
2,555
|
Plaintiff:
States of GO, RJ, PA, BA, SE, AL, SP and PR Finance Departments
|
|
|
14)
Appropriation of ICMS credit on the acquisition of goods (products in general) that, in the understanding of the inspection,
would fit into the concept of material for use and consumption, being the tax credit undue.
|
|
|
Current
status: The issue involves several administrative and judicial proceedings.
|
2,689
|
2,428
|
Plaintiff:
States of PR, AM, BA, PA, PE, SP and AL Finance Departments
|
|
|
15)
Incidence of VAT (ICMS) over alleged differences in the control of physical and fiscal inventories.
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial levels.
|
2,035
|
2,300
|
Plaintiff:
State of SP Finance Department
|
|
|
16)
Deferral of payment of VAT (ICMS) taxes on B100 Biodiesel sales and the charge of a 7% VAT rate on B100 on Biodiesel interstate
sales, including states in the Midwest, North and Northeast regions of Brazil and the State of Espírito Santo.
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial stages.
|
2,162
|
2,277
|
Plaintiff:
States of RJ, SP, BA, PE, RS, PR and SE Finance Departments
|
|
|
17)
Misappropriation of VAT tax credit (ICMS) on the acquisitions of goods that, per the tax authorities, are not related to property,
plant and equipment.
|
|
|
Current
status: This claim involves lawsuits in different judicial stages. Exposure reduction due to
the loss expectation revision on this matter.
|
1,719
|
2,267
|
Plaintiff:
States of RJ, SP, BA, AL, PB and AM Finance Departments
|
|
|
18)
Misappropriation of VAT tax credit (ICMS) on the acquisitions of drills and chemicals used in the formulation of drilling
fluid, per the tax authorities.
|
|
|
Current
status: This claim involves lawsuits in different administrative and judicial stages.
|
2,174
|
2,059
|
Plaintiff:
Secretariat of the Federal Revenue of Brazil
|
|
|
19)
Income taxes (IRPJ and CSLL) - Amortization of goodwill on the acquisition of equity interests.
|
|
|
Current
status: This claim involves lawsuits in different administrative stages.
|
1,694
|
920
|
20)
Other tax matters
|
10,805
|
10,057
|
Total
for tax matters
|
127,375
|
130,499
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Description
of labor matters
|
Estimate
|
|
12.31.2020
|
12.31.2019
|
Plaintiff:
Employees and Sindipetro Union of ES, RJ, BA, MG, SP, PE, PB, RN, CE, PI, PR and SC..
|
|
|
1)
Actions requiring a review of the methodology by which the minimum compensation based on an employee's position and work schedule
(Remuneração Mínima por Nível e Regime - RMNR) is calculated.
|
|
|
Current
status: The Superior Labor Court (Tribunal Superior do Trabalho - TST) denied the special appeal filed by the Company. Petrobras
filed an appeal, which is currently pending judgment by the Federal Supreme Court. On July 26, 2018, the president minister
of the Federal Supreme Court (Supremo Tribunal Federal - STF) granted Petrobras' request to prevent the effects of the judgment
of the TST, determining the suspension of individual and class actions on this subject, pending the deliberation on this matter
in the Supreme Court or further deliberation of the rapporteur minister assigned to this case. On August 13, 2018, the selected
Rapporteur confirmed the decision of the president minister and extended its effects to the ongoing actions on the matter,
suspending all cases relating to this subject.
|
34,711
|
31,164
|
2)
Other labor matters
|
7,794
|
8,071
|
Total
for labor matters
|
42,505
|
39,235
|
|
Description
of civil matters
|
Estimate
|
|
12.31.2020
|
12.31.2019
|
Plaintiff:
Agência Nacional de Petróleo, Gás Natural e Biocombustíveis - ANP
|
|
|
1)
Administrative and legal proceedings challenging an ANP order requiring Petrobras to pay additional special participation
fees and royalties (production taxes) with respect to several fields.
|
|
|
Current
status: The claims involve lawsuits in different administrative and judicial stages.
|
4,821
|
3,597
|
Plaintiff:
Agência Nacional de Petróleo, Gás Natural e Biocombustíveis – ANP and other agencies
|
|
|
2)
Administrative and legal proceedings about fines imposed by ANP due to alleged failure to comply with the minimum exploration
activities program, as well as alleged irregularities relating to compliance with oil and gas industry regulation. It also
includes fines imposed by other agencies.
|
|
|
Current
status: The claims involve lawsuits in different administrative and judicial stages.
|
2,036
|
2,529
|
Plaintiff:
Agência Nacional de Petróleo, Gás Natural e Biocombustíveis - ANP
|
|
|
3)
Proceedings challenging an ANP order requiring Petrobras to unite Tupi and Cernambi fields on the BM-S-11 joint venture; to
unite Baúna and Piracicaba fields; to unite Tartaruga Verde and Mestiça fields; and to unite Baleia Anã,
Baleia Azul, Baleia Franca, Cachalote, Caxaréu, Jubarte and Pirambu, in the Parque das Baleias complex, which would
cause changes in the payment of special participation charges.
|
|
|
Current
status: This list involves claims that are disputed in court and in arbitration proceedings, as follows:
a)
Tupi and Cernanbi: initially, the Company made judicial deposits for the alleged differences resulting from the special
participation. However, with the reversal of the favorable injunction, the payment of these alleged differences were made
directly to ANP, and such judicial deposits were resumed in the 2nd Quarter of 2019. Arbitration remains suspended by
court decision;
b)
Baúna and Piracicaba: the Court reassessed previous decision that disallowed judicial deposits, therefore the Company
is currently depositing the controversial amounts. The arbitration is stayed.
c)
Tartaruga Verde and Mestiça: The Company has authorization to make the judicial deposits relating to these fields.
The Regional Federal Court of the Second Region has the opinion that the Chamber of Arbitration has jurisdiction on this
claim and the arbitration is ongoing..
|
2,446
|
1,576
|
Plaintiff:
EIG Management Company in USA
|
|
|
4)
Lawsuit in the USA regarding Sete Brasil.
Current
status: The lawsuit brought by EIG and its affiliates alleges that the Company has committed fraud by inducing the claimants
to invest in "Sete" through communications that would have omitted an alleged corruption scheme involving Petrobras
and "Sete". During the year 2020, the case continued at the stage of producing evidence in the lower court.
The next procedural phases are expected to be scheduled, including the final merit hearing. Decrease in value mainly due
to the closure in 2020 of several arbitrations in Brazil relating to the Sete Brasil matter.
|
273
|
4,128
|
Plaintiff:
Agência Estadual de Regulação de Serviços Públicos de Energia, Transportes e Comunicações
da Bahia (AGERBA) and State Gas Companies
|
|
|
5)
Public Civil Action (ACP) to discuss the alleged illegality of the gas supply made by the company to its Nitrogenated Fertilizer
Production Unit (FAFEN / BA) and other lawsuits in which the state monopoly on piped gas services is discussed.
|
|
|
Current
status: The issue involves proceedings at different judicial stages.
|
1,601
|
1,205
|
6)
Other civil matters, highlighting demands related to contracts and civil liability.
|
12,835
|
11,062
|
Total
for civil matters
|
24,012
|
24,097
|
|
Description
of environmental matters
|
Estimate
|
|
12.31.2020
|
12.31.2019
|
Plaintiff:
Ministério Público Federal, Ministério Público Estadual do Paraná, AMAR - Associação
de Defesa do Meio Ambiente de Araucária, IAP - Instituto Ambiental do Paraná and IBAMA - Instituto Brasileiro
de Meio Ambiente e Recursos Naturais Renováveis.
|
|
|
1)
Legal proceeding related to specific performance obligations, indemnification and compensation for damages related to an environmental
accident that occurred in the State of Paraná on July 16, 2000.
|
|
|
Current
status: The court partially ruled in favor of the plaintiff. However, both parties (the plaintiff and the Company) filed an
appeal. The appeals were partially granted.
|
2,206
|
1,894
|
2)
Various environmental proceedings, with emphasis on fines related to the company's operations and public civil action for
alleged environmental damage due to the sinking of Platform P-36.
|
5,407
|
4,458
|
Total
for environmental matters
|
7,613
|
6,352
|
|
|
20.4.
|
Class
action in Netherlands and arbitrations in Brazil and in Argentina
|
20.4.1
Class action in Netherlands
On
January 23, 2017, Stichting Petrobras Compensation Foundation ("Fundação") filed a class action in the
Netherlands, in the District Court of Rotterdam, against Petróleo Brasileiro SA - Petrobras, Petrobras International Braspetro
BV (PIB BV), Petrobras Global Finance BV (PGF), Petrobras Oil & Gas BV (PO&G) and some former Petrobras managers.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
The
Foundation claims that it represents the interests of an unidentified group of investors and claims that, based on the facts revealed
by Lava Jato Operation, the defendants acted unlawfully towards investors. Based on these allegations, the Foundation seeks a
series of court statements by the Dutch court.
On
August 23, 2017, a hearing was held at the Rotterdam District Court (“Court”) to establish the timetable for the process.
Petrobras and other defendants filed preliminary defenses on November 29, 2017 and the Foundation submitted its response on March
28, 2018. On June 28, 2018, a hearing was held to present the parties' oral arguments. On September 19, 2018, the Court handed
down its decision on these preliminary matters, having understood that it has jurisdiction to judge most of the requests made
by the Foundation. There was no analysis regarding the merits of the case, as the court ruled only on procedural issues.
On
January 29, 2020, the Court determined that shareholders who understand Portuguese and / or who bought shares through intermediaries
or other agents who understand that language, among other shareholders, are subject to the arbitration clause provided for in
the company's Bylaws, remaining out of the collective action proposed by the Foundation. The Court also considered the binding
effect of the agreement signed to close the United States' class action. In this way, the Foundation needs to demonstrate that
it represents a sufficient number of investors to justify pursuing collective action in the Netherlands. The Foundation and Petrobras
expressed their views on the issues addressed in that decision and presented their oral arguments at a hearing held on January
26, 2021.
The
class action concerns complex issues and the result is subject to substantial uncertainties, which depend on factors such as:
the legitimacy of the Foundation to represent the interests of investors, the laws applicable to the case, the information obtained
from the production phase of evidence, expert analysis, timetable to be defined by the Court and judicial decisions on key issues
in the process as well as the fact that the Foundation seeks only a declaratory decision. It is not possible to predict at the
moment whether the company will be responsible for the effective payment of indemnities in eventual future individual actions,
as this analysis will depend on the result of these complex procedures. In addition, it is not possible to know which investors
will be able to file subsequent individual actions related to this matter against Petrobras.
In
addition, the claims made are broad, spanning a multiannual period and involve a wide variety of activities and, in the current
scenario, the impacts of such claims are highly uncertain. The uncertainties inherent in all of these issues affect the value
and duration of the final resolution of that action. As a result, Petrobras is unable to estimate an eventual loss resulting from
this action. Petrobras is a victim of the corruption scheme revealed by the Lava-Jato Operation and intends to present and prove
this condition before the Dutch court.
In
view of the uncertainties that exist at the moment, it is not possible to carry out any reliable assessment regarding possible
risks related to this litigation. The eventual indemnity for the alleged damages will only be determined by judicial decisions
in subsequent actions to be presented by individual investors. The Foundation cannot claim damages for collective action.
Petrobras
and its subsidiaries deny the allegations presented by the Foundation and intend to defend themselves firmly.
20.4.2Arbitrations
in Brazil
Petrobras
is also currently a party to seven arbitrations proceedings before the Market Arbitration Chamber
(Câmara de Arbitragem do Mercado - CAM), linked to the Brazilian Stock Exchange (B3), brought by investors
who purchased Petrobras’ shares traded in B3. Six of these arbitrations were initiated by national and foreign investors.
The other proceeding was brought by an association that is not a shareholder of the Company and intends to be a collective arbitration,
through representation of all minority shareholders of Petrobras that acquired shares in B3 between January 22, 2010 and July
28, 2015. Investors intend for the company to indemnify them for the alleged financial losses caused by the decrease in the price
of Petrobras shares listed on the stock exchange in Brazil, resulting from the acts revealed by Lava Jato Operation.
These
arbitrations involve very complex issues, which are subject to substantial uncertainties and which depend on factors such as:
unprecedented legal theses, schedules yet to be defined by the Arbitral Courts, the obtaining of evidence in the hands of third
parties or opponents and expert analyzes.
Furthermore,
the claims made are broad and span several years. The uncertainties inherent in all of these issues affect the amount and timing
of the final decision on these arbitrations. As a result, the company is unable to produce a reliable estimate of the potential
loss in these arbitrations.
Depending
on the outcome of all these cases, the company may have to pay substantial amounts, which could have a material adverse effect
on its financial condition, consolidated results or consolidated cash flow in a given period. However, Petrobras does not acknowledge
responsibility for the alleged losses alleged by investors in these arbitrations, nor is it appropriate for collective arbitration.
Most
of these arbitrations are still far from an outcome, either in preliminary stages or beginning the phase of producing evidence,
so that there is no provision for the judgment of the respective arbitral courts.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
However,
in one of the arbitrations, proposed by two institutional investors, on May 26, 2020, a partial arbitral award was issued that
indicates the company's responsibility, but does not determine the payment of amounts by Petrobras, nor does it end the procedure.
This arbitration is confidential, as well as the others in progress, and the partial sentence that does not represent a CAM position,
but only of the three arbitrators that make up this arbitration panel, does not extend to the other existing arbitrations.
On
July 20, 2020, Petrobras filed a lawsuit for the annulment of this partial arbitration award, considering that it contains serious
flaws and improprieties. This lawsuit is still pending and has not yet been judged. On November 11, 2020, the 5th Business Court
of Rio de Janeiro annulled the partial arbitration award, due to these serious flaws and improprieties pointed out by Petrobras.
There is still appeal against this decision. In compliance with CAM rules, the lawsuit is confidential. Petrobras will continue
to defend itself in this and other arbitrations.
20.4.3Arbitrations
in Argentina
On
September 11, 2018, Petrobras was served of an arbitral claim filed by Consumidores Financieros Asociación Civil para su
Defensa ("Association") against the company and other individuals and legal entities, before the “Tribunal de
Arbitraje General de la Bolsa de Comercio de Buenos Aires”. Among other issues, the Association alleges Petrobras' liability
for a supposed loss of market value of Petrobras' shares in Argentina, due to proceedings related to Lava Jato investigation.
On
June 14, 2019, the Company informed that the Chamber of Arbitration recognized the withdrawal of the arbitration due to the fact
that the Association had not paid the arbitration fee within the established period. The Association appealed to the Argentine
Judiciary against this decision, which was rejected on November 20, 2019. The Association filed a new appeal addressed to the
Argentine Supreme Court, pending a final decision.
Petrobras
denies the allegations presented by the Association and intends to defend itself vigorously.
|
20.5.
|
Other
legal proceedings in Argentina
|
Petrobras
was included as a defendant in criminal actions in Argentina:
|
·
|
Criminal
action for alleged non-compliance with the obligation to publish “press release”
in the Argentine market about the existence of a class action filed by Consumidores Financieros
Asociación Civil para su Defensa before the Commercial Court, according to the
provisions of the Argentine capital market law. Petrobras was never mentioned in the
scope of the referred collective action. Petrobras presented procedural defenses in the
criminal action but some of them have not yet been judged by the court. This criminal
action is pending before the Criminal Economic Court No. 3 of the city of Buenos Aires;
|
|
·
|
Criminal
action related to an alleged fraudulent offer of securities, when Petrobras allegedly
declared false data in its financial statements prior to 2015. Petrobras presented procedural
defenses but some of them have not yet been judged by the court. September 14, 2020,
the judge accepted the defense presented by the Company and decided that Petrobras could
not be sued in a criminal case before the Argentine Justice. The Association appealed
this decision, and the appeal is pending judgment. This criminal action is pending before
the Criminal Economic Court No. 2 of the city of Buenos Aires.
|
|
20.6.
|
Tax
recoveries under dispute
|
20.6.1
Deduction of VAT tax (ICMS) from the basis of calculation of PIS and COFINS
The
Company filed complaints against Brazilian Federal Government challenging the constitutionality of the inclusion, since 2001,
of VAT tax within the calculation basis of PIS and COFINS. The Company obtained a favorable and definitive court decision on this
claim, recognizing the right to offset the amounts unduly paid under PIS and COFINS, and this decision became final and the respective
asset recognized in the year 2020, according to note 17 of Taxes.
The
credit recognized in the assets refers to the exclusion of the VAT Tax effectively collected from the calculation base of the
PIS and COFINS contributions, according to the guidance of the Federal Revenue of Brazil (COSIT Consultation Solution 13), while
the difference for the highlighted VAT Tax on the invoice was not recorded in the assets, as it still depends on a decision by
the STF.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Accounting
policy
Provisions
are recognized when: (i) the company has a present obligation as a result of a past event; (ii) it is probable that an outflow
of funds that incorporate economic benefits will be necessary to settle the obligation, and (iii) the amount of the obligation
can be estimated reliably.
Contingent
liabilities are not recognized, but are disclosed in explanatory notes when the probability of outflow of funds is possible, including
those whose values cannot be estimated.
The
methodology used to measure the provisions is described in note 4.5.
Contingent
assets are not recognized, but are disclosed in explanatory notes when the inflow of economic benefits is considered probable.
However, if the inflow of economic benefits is virtually certain, the related asset is not a contingent asset and it is recognized.
|
21.
|
Provision
for decommissioning costs
|
The
table below details the provision for decommissioning costs amount per production area:
|
Consolidated
|
Parent
Company
|
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
Onshore
|
8,453
|
5,640
|
8,052
|
5,390
|
Shallow
waters
|
22,395
|
16,682
|
22,395
|
16,682
|
Deep
and ultra-deep post-salt
|
50,800
|
35,250
|
50,800
|
35,250
|
Pre-salt
|
15,947
|
12,805
|
15,947
|
12,805
|
Total
|
97,595
|
70,377
|
97,194
|
70,127
|
The
company annually reviews, with a base date of December 31, its estimated costs for decommissioning oil and gas production areas,
together with its annual reserve certification process and when there are indications of changes in its premises.
|
Consolidated
|
Parent
Company
|
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
Opening
balance
|
70,377
|
58,637
|
70,127
|
58,332
|
Adjustment
to provision
|
29,309
|
23,228
|
29,239
|
23,294
|
Transfers
related to liabilities held for sale (*)
|
(2,793)
|
(12,261)
|
(2,793)
|
(12,261)
|
Payments
made
|
(2,293)
|
(1,986)
|
(2,288)
|
(1,986)
|
Interest
accrued
|
2,925
|
2,749
|
2,909
|
2,748
|
Others
|
70
|
10
|
−
|
−
|
Closing
balance
|
97,595
|
70,377
|
97,194
|
70,127
|
(*)
In 2020, includes transfers related mainly to concessions in Bahia (R$ 1,550) and concessions in Rio Grande do Norte (R$ 1,054),
as per note 24. In 2019, includes transfers related to the Campos basin (R$ 10,404); concessions in Rio Grande do Norte (R$ 149);
Bahia concessions (R$ 60); Frade field (R$ 471) and Baúna field (R$ 1,177).
In
2020, the revision of the provision resulted in an increase of R$ 29.3 billion, reflecting the Strategic Plan 2021-2025 and the
revision of technical assumptions. We highlight the main factors:
|
·
|
an
increase of R$ 20.5 billion attributable to the devaluation of the Real against the US
Dollar (from R$ 4.03 /US$ 1.00 in 2019, to R$ 5.20 / US$ 1.00 in 2020), with an impact
on dollar costs;
|
|
·
|
an
increase of R$ 11.6 billion due to the anticipation of the abandonment schedule in some
fields, mainly in the Tupi, Marlim Sul, Roncador and Jubarte, given that the change in
scenarios in 2020 anticipated the year of cut in concessions due to the replacement projects
for some Production Units have become no economical;
|
|
·
|
an
increase of R$ 0.7 billion due to the reduction of the risk-adjusted discount rate of
4.22% p.a. in 2019 to 4.15% p.a. in 2020, reflecting an improvement in risk perception
in the world panorama;
|
|
·
|
reduction
of R$ 6.7 billion due to the review of assumptions for well and equipment techniques.
|
Accounting
policy
The
initial recognition of legal obligations to remove equipment and restore land or sea areas at the end of operations occurs after
the technical and commercial feasibility of producing oil and gas in a field has been demonstrated. The calculations of the cost
estimates for future environmental removals and recoveries are complex and involve significant judgments, according to note 4.6
on relevant estimates and judgments.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
The
estimates of decommissioning costs are reviewed annually based on current information on expected costs and recovery plans. When
the revision of the estimates results in an increase in the provision for decommissioning costs, there is a corresponding increase
in assets. Otherwise, when there is a decrease in the provision, there is a corresponding reduction in assets, without exceeding
its book value. Any excess portion is immediately recognized in the statement of income within other expenses.
In
the classification of non-current assets as held for sale, provisions for decommissioning costs related to these assets are also
included. Any commitments assumed with future environmental removals and recoveries resulting from the sale of assets are recognized
after the closing of the sale operation, in accordance with the contractual terms.
|
22.
|
Other
assets and liabilities
|
Assets
|
|
Consolidated
|
Parent
Company
|
|
|
2020
|
2019
|
2020
|
2019
|
Escrow
account and/ or collateral
|
(a)
|
4,055
|
2,702
|
3,544
|
1,817
|
Prepaid
expenses
|
(b)
|
2,045
|
2,606
|
2,647
|
2,297
|
Advances
to suppliers
|
(c)
|
1,366
|
4,554
|
1,212
|
4,597
|
Derivatives
Transactions
|
(d)
|
620
|
342
|
249
|
69
|
Agreements
and covenants
|
(e)
|
370
|
462
|
2,057
|
2,519
|
Others
|
|
1,238
|
1,409
|
947
|
1,114
|
|
|
9,694
|
12,075
|
10,656
|
12,413
|
Current
|
|
6,395
|
6,014
|
7,573
|
6,617
|
Non-Current
|
|
3,299
|
6,061
|
3,083
|
5,796
|
|
|
|
|
|
|
Liabilities
|
|
Consolidated
|
Parent
Company
|
|
|
2020
|
2019
|
2020
|
2019
|
Obligations
arising from divestments
|
(f)
|
4,865
|
282
|
4,865
|
282
|
Contractual
retentions
|
(g)
|
2,784
|
2,586
|
2,263
|
2,153
|
Advances
from customers and partners
|
(h)
|
2,250
|
2,053
|
1,470
|
1,994
|
Provisions
for environmental expenses, R&D and fines
|
(i)
|
2,393
|
2,459
|
1,991
|
2,230
|
Other
recoverable taxes
|
(j)
|
2,108
|
2,152
|
1,513
|
1,775
|
Derivatives
Transactions
|
(d)
|
1,469
|
631
|
1,272
|
6
|
Various
creditors
|
|
643
|
623
|
638
|
615
|
Short-term
benefits
|
(k)
|
765
|
153
|
764
|
153
|
Others
|
|
2,515
|
2,451
|
2,054
|
1,654
|
|
|
19,792
|
13,390
|
16,830
|
10,862
|
Current
|
|
8,338
|
7,947
|
5,944
|
6,338
|
Non-Current
|
|
11,454
|
5,443
|
10,886
|
4,524
|
a)
Amounts deposited for payment of obligations related to financing raised with the China Development Bank (CDB), as well as guarantee
margin deposits to cover derivative, financial and commodities transactions, contracted in futures and over-the-counter markets.
In addition, there are amounts invested in investment funds from guarantee account resources related to divestment operations
in TAG and NTS.
b)
Amounts whose compensation must be made by supplying materials or providing services contracted with the suppliers.
c)
Platform charters and equipment rentals expenses in situations in which the start of operations has been postponed due to legal
requirements or the need for technical adjustments.
d)
Fair value of open positions and transactions closed and not yet settled financially.
e)
Amounts anticipated by partners of joint operations in E&P consortia.
f)
Provisions for financial reimbursements assumed by Petrobras to be made to the buyer, referring to the portion of expenses with
abandonment of wells, pipelines and equipment of the divested assets of the following centers: (i) Riacho da Forquilha; (ii) Pampo
and Enchova; (iii) Macau; and (iv) Lagoa Parda. The settlement of the provisions follows decommissioning schedules, with payments
beginning between two and three months after the date considered for the execution of the operations, according to the contractual
terms for reimbursement of abandonment of the respective centers.
g)
Portions retained from obligations with suppliers to guarantee the execution of the contract signed, recorded at the time of maturity
of such obligations. Contractual retentions will be paid to suppliers at the end of the contract, upon the issuance of the contract
termination term.
h)
Amounts related to the anticipated or cash receipt from third parties, linked to the sale of products or services in the country.
i)
Values established for the purpose of environmental compensation assumed by the company in the course of its operations
and development of its research projects.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
j)
Non-current portion of miscellaneous taxes, according to note 17.
k)
Non-current portion of the provision for the voluntary termination plan (PDV), according to note 18.
Accounting
practice
The
accounting recognition of obligations arising from divestment is at present value, using a risk-free discount rate, adjusted to
the company's credit risk, being the best estimate of disbursement required to settle the present obligation on the balance sheet
date and are subject to significant changes as activity execution schedules are updated and detailed by buyers.
|
23.
|
The
“Lava Jato (Car Wash) Operation” and its effects on the Company
|
In
the preparation of the financial statements for the year ended December 31, 2020, the company considered all available information
and monitored the investigations of “Lava Jato Operation”, and no new information was identified that would alter
the write-off of additional expenses that had been unduly capitalized that were recognized in the third quarter of 2014, or significantly
impacted the methodology adopted by the company. Petrobras will continue to monitor the investigations to obtain additional information
and assess its potential impact on the adjustments made.
The
company continues to monitor the investigations and effectively collaborate with the work of national and foreign authorities,
including Brazilian Federal Police (Polícia Federal), the Brazilian Public Prosecutor’s Office (Ministério
Público Federal), the Federal Court, the Federal Auditor’s Office (Tribunal de Contas da União –
TCU) and the General Federal Inspector’s Office (Controladoria Geral da União) in the investigation of all
crimes and irregularities.
During
the year of 2020, new leniency and plea agreements entitled the Company to receive funds with respect to compensation for damages,
in the amount of R$ 797 (R$ 874 in 2019), accounted for as other income and expenses and must be added to the amount of R$ 4,151
recognized in previous periods, aiming at the accumulated position.
|
23.1.
|
Investigations
involving the Company
|
|
23.1.1
|
U.S.
Securities and Exchange Commission - SEC and U.S. Department of Justice - DoJ inquiries
|
On
September 27, 2018, the Company settled the open matters with the U.S. Department of Justice (DoJ) and the U.S. Securities and
Exchange Commission (SEC) investigation, which encompassed the Company’s internal controls, books and records, and financial
statements from 2003 to 2012.
The
deals completely ended investigations by U.S. authorities and established payments of US$ 85.3 million to the DoJ and US$ 85.3
million to the SEC. Additionally, they recognized the allocation of US$ 682.6 million to the Brazilian authorities. Thus, the
amount of US$ 853.2 million (R$ 3,536) was recorded in other operating expenses in the third quarter of 2018. Petrobras paid,
in October 2018, US$ 85.3 million to the DoJ, deposited in January of 2019, US$ 682.6 million to the Brazilian authorities, and
in March 2019 paid the last US$ 85.3 million to the SEC.
The
agreements served the best interests of Petrobras and its shareholders and ended the uncertainties, burdens and costs associated
with potential litigation in the United States.
|
23.1.2
|
U.S.
Commodity Futures Trading Commission - CFTC
|
On
May 30, 2019, the U.S. Commodity Futures Trading Commission (“CFTC”) contacted Petrobras with an inquiry regarding
trading activities related to the Lava Jato Operation. Petrobras reiterates that it continues to cooperate with the regulatory
authorities, including the CFTC, regarding any inquiry.
|
23.1.3
|
Order
of civil inquiry - Brazilian Public Prosecutor’s Office
|
On
December 15, 2015, the State of São Paulo Public Prosecutor’s Office issued the Order of Civil Inquiry 01/2015, establishing
a civil proceeding to investigate the existence of potential damages caused by Petrobras to investors in the Brazilian stock market.
The Brazilian Attorney General’s Office (Procuradoria Geral da República) assessed this civil proceeding and
determined that the São Paulo Public Prosecutor’s Office has no authority over this matter, which must be presided
over by the Brazilian Public Prosecutor’s Office. The Company has provided all relevant information requested by the authorities.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
24.
|
Commitment
to purchase natural gas
|
The
GSA agreement (Gas Supply Agreement) entered into with Petrobras and Yacimientos Petroliferos Fiscales Bolivianos - YPFB was initially
effective until December 31, 2019. In addition, according to agreement provision, after December 31, 2019, the GSA was automatically
extended until the entire volume contracted is delivered by YPFB and withdrawn by Petrobras. Also, on March 6, 2020, by means
of a contractual amendment, the Parties changed the daily contracted quantity (QDC) from 30.08 million m³ per day to 20 million
m³ per day, which became effective as from March 11, 2020.
Thus,
as of December 31, 2020, the total amount of the GSA for 2021 is nearly 7.30 billion cubic meters of natural gas (equivalent to
20.00 million cubic meters per day) and corresponds to a total estimated value of US$ 1.06 billion.
On
January 1, 2021, the contractual provision referring to the aforementioned extension clause indicates an extension of the GSA
until May 2024, on the basis of 20.00 million m³ per day, representing an estimated total additional amount of US$ 3.35 billion
for the period between January 1, 2021 and May 5, 2024.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
25.
|
Property,
plant and equipment
|
|
Consolidated
|
Parent
Company
|
|
Land,
buildings
and
improvement
|
Equipment
and other assets (*)
|
Assets
under
construction
(**)
|
Exploration
and development costs (oil and gas producing properties) (***)
|
Right-of-use
assets
|
Total
|
Total
|
Balance
at January 1, 2019
|
20,189
|
294,592
|
112,085
|
182,963
|
−
|
609,829
|
483,375
|
Initial
adoption of IFRS 16
|
−
|
−
|
−
|
−
|
102,970
|
102,970
|
194,523
|
Additions
|
3
|
11,268
|
20,510
|
593
|
9,220
|
41,594
|
77,082
|
Additions
to / review of estimates of decommissioning costs
|
−
|
−
|
−
|
22,633
|
−
|
22,633
|
22,699
|
Capitalized
borrowing costs
|
−
|
−
|
5,254
|
−
|
−
|
5,254
|
5,175
|
Reimbursement
under the Transfer of Rights Agreement
|
−
|
−
|
−
|
(34,238)
|
−
|
(34,238)
|
(34,238)
|
Write-offs
|
(15)
|
(374)
|
(1,168)
|
(1,674)
|
(86)
|
(3,317)
|
(3,314)
|
Transfers
|
1,818
|
22,950
|
(40,251)
|
19,242
|
470
|
4,229
|
8,668
|
Transfers
to assets held for sale
|
(3,159)
|
(19,461)
|
(2,436)
|
(4,716)
|
(5,265)
|
(35,037)
|
(12,892)
|
Depreciation,
amortization and depletion
|
(910)
|
(24,044)
|
−
|
(18,772)
|
(19,792)
|
(63,518)
|
(69,657)
|
Impairment
recognition
|
(5)
|
(5,231)
|
(5,903)
|
(3,041)
|
(662)
|
(14,842)
|
(10,963)
|
Impairment
reversal
|
−
|
971
|
325
|
1,801
|
−
|
3,097
|
2,358
|
Cumulative translation
adjustment
|
17
|
3,002
|
64
|
54
|
158
|
3,295
|
−
|
Balance
at December 31, 2019
|
17,938
|
283,673
|
88,480
|
164,845
|
87,013
|
641,949
|
662,816
|
Cost
|
27,839
|
501,808
|
135,599
|
292,930
|
107,233
|
1,065,409
|
1,022,399
|
Accumulated
depreciation, amortization, depletion and impairment
|
(9,901)
|
(218,135)
|
(47,119)
|
(128,085)
|
(20,220)
|
(423,460)
|
(359,583)
|
Balance
at December 31, 2019
|
17,938
|
283,673
|
88,480
|
164,845
|
87,013
|
641,949
|
662,816
|
Additions
|
1
|
23,819
|
14,825
|
1,883
|
22,671
|
63,199
|
174,429
|
Additions
to / review of estimates of decommissioning
costs
(note 21)
|
−
|
−
|
−
|
27,899
|
−
|
27,899
|
27,829
|
Capitalized
borrowing costs
|
−
|
−
|
4,797
|
−
|
−
|
4,797
|
4,745
|
Write-offs
|
(26)
|
(2,269)
|
(2,266)
|
(1,055)
|
(6,588)
|
(12,204)
|
(81,011)
|
Transfers
|
(1,485)
|
13,724
|
(15,342)
|
6,079
|
(119)
|
2,857
|
1,955
|
Transfers
to assets held for sale
|
(47)
|
(1,055)
|
14
|
(3,956)
|
(73)
|
(5,117)
|
(4,995)
|
Depreciation,
amortization and depletion
|
(719)
|
(21,882)
|
−
|
(19,650)
|
(20,627)
|
(62,878)
|
(71,925)
|
Impairment
recognition (note 27)
|
(68)
|
(35,813)
|
(13,997)
|
(22,691)
|
(1,645)
|
(74,214)
|
(66,603)
|
Impairment
reversal (note 27)
|
−
|
28,522
|
2,479
|
8,296
|
638
|
39,935
|
22,848
|
Cumulative translation
adjustment
|
218
|
16,221
|
1,265
|
308
|
1,199
|
19,211
|
−
|
Balance
at December 31, 2020
|
15,812
|
304,940
|
80,255
|
161,958
|
82,469
|
645,434
|
670,088
|
Cost
|
28,322
|
557,080
|
143,142
|
316,486
|
123,578
|
1,168,608
|
1,120,987
|
Accumulated
depreciation, amortization, depletion and impairment (****)
|
(12,510)
|
(252,140)
|
(62,887)
|
(154,528)
|
(41,109)
|
(523,174)
|
(450,899)
|
Balance
at December 31, 2020
|
15,812
|
304,940
|
80,255
|
161,958
|
82,469
|
645,434
|
670,088
|
Weighted
average useful life in years
|
40
(25
to 50)
(except
land)
|
20
(3
to 31)
|
|
Units
of production method
|
8
(2
to 47)
|
|
|
(*)
Consisting of production platforms, refineries, thermoelectric plants, gas treatment units, pipelines and other operating, storage
and production facilities, including subsea production equipment and flow of oil and gas depreciated by the method of the units
produced.
(**)
The balances by business segment are presented in note 33.
(***)
Composed of exploration and production assets related to wells, abandonment of areas, signature bonuses associated with proven
reserves and other expenses directly linked to exploration and production, except production platforms.
(****)
In the case of assets under construction, it refers only to impairment losses.
The
investments made by the company in the year of 2020 were mainly intended for the development of the production of oil and natural
gas fields, primarily in the pre-salt layer. In 2020, the highlights were the entry into operation of the FPSO P-70, a production
system located in the Atapu field. In 2019, the highlights were the FPSO P-77, located in the Búzios field and the FPSO
P-68, located in the Berbigão field.
As
of December 31, 2020, the rights of use are presented for the following underlying assets:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
Consolidated
|
Parent
Company
|
|
Platforms
|
Vessels
|
Buildings
and others
|
Total
|
Total
|
2019
|
|
|
|
|
|
Accumulated
cost
|
58,618
|
43,119
|
5,496
|
107,233
|
206,743
|
Accumulated
depreciation, amortization, depletion and impairment
|
(9,456)
|
(9,525)
|
(1,239)
|
(20,220)
|
(34,632)
|
Balance
at December 31, 2019
|
49,162
|
33,594
|
4,257
|
87,013
|
172,111
|
2020
|
|
|
|
|
|
Accumulated
cost
|
57,913
|
58,498
|
7,167
|
123,578
|
139,784
|
Accumulated
depreciation, amortization, depletion and impairment
|
(16,447)
|
(21,251)
|
(3,411)
|
(41,109)
|
(45,198)
|
No
contractual readjustment clause
|
−
|
(15,308)
|
(821)
|
(16,129)
|
(16,236)
|
With
contractual readjustment clause - abroad
|
(16,447)
|
(2,237)
|
−
|
(18,684)
|
(19,463)
|
With
contractual readjustment clause - in the country
|
−
|
(3,706)
|
(2,590)
|
(6,296)
|
(9,499)
|
Balance
at December 31, 2020
|
41,466
|
37,247
|
3,756
|
82,469
|
94,586
|
|
|
|
|
|
|
|
|
25.2.
|
Estimated
useful life – Consolidated
|
|
Buildings
and improvements, equipment and other assets
|
Estimated
useful life
|
Cost
|
Accumulated
depreciation
|
Balance
at 12.31.20
|
5 years
or less
|
17,962
|
(13,652)
|
4,310
|
6
- 10 years
|
42,898
|
(25,709)
|
17,189
|
11
- 15 years
|
27,367
|
(5,587)
|
21,780
|
16
- 20 years
|
183,936
|
(131,024)
|
52,912
|
21
- 25 years
|
150,054
|
(31,005)
|
119,049
|
25
- 30 years
|
59,577
|
(11,933)
|
47,644
|
30
years or more
|
23,383
|
(10,354)
|
13,029
|
Units
of production method
|
79,535
|
(35,352)
|
44,183
|
|
584,712
|
(264,616)
|
320,096
|
Buildings
and improvements
|
27,632
|
(12,476)
|
15,156
|
Equipment
and other assets
|
557,080
|
(252,140)
|
304,940
|
|
Accounting
policy
Property,
plant and equipment are stated at acquisition costs or construction costs, which also include the costs directly attributable
to putting the asset in operating condition, as well as, when applicable, the estimated cost of dismantling and removing the property
and restoration of the property location where the asset is located, less accumulated depreciation and impairment losses - (impairment).
Expenses
with major planned maintenance carried out to restore or maintain the original performance standards of industrial units, marine
production units and ships are recognized in property, plant and equipment when the campaign term exceeds twelve months and the
campaigns are predictable. These expenses are depreciated over the forecast period until the next major maintenance. Maintenance
expenses that do not meet these requirements are recognized as expenses in the income statement.
Spare
parts and spare parts with a useful life of more than one year and which can only be used in connection with items of property,
plant and equipment are recognized and depreciated along with the main asset.
Financial
charges on loans obtained, when directly attributable to the acquisition or construction of assets, are capitalized as part of
the costs of these assets. Financial charges on funds raised without specific destination, used for the purpose of obtaining a
qualifying asset, are capitalized at the average rate of loans in effect during the period, applied to the balance of works in
progress. Loans, directly attributable to the construction of qualifying assets are excluded from this calculation until all activities
necessary to leave said asset in conditions of use or sale intended by management are completed. The company ceases to capitalize
the financial charges on qualifying assets whose development is completed. Generally, the capitalization of interest is suspended,
among other reasons, when the qualifying assets do not receive significant investments for a period equal to or greater than 12
months.
The
assets directly related to the oil and gas production of a contracted area, whose useful life is not less than the life of the
field (time of reserves depletion), are depleted by the method of the units produced, including rights and concessions as the
signature bonus.
Using
the units produced method, the depletion rate is calculated based on the monthly production of the respective producing field
in relation to its respective proved developed reserve, except for the subscription bonus, whose rate is calculated considering
the monthly production volume in relation to the total proven reserves of each producing field in the area to which the subscription
bonus refers.
The
assets depreciated by the straight-line method based on the estimated useful lives, which are reviewed annually and shown in note
25.2, are: (i) those directly linked to the production of oil and gas, whose useful life is less than the useful life of the field;
(ii) mobile platforms; and (iii) other goods not directly related to oil and gas production. Land is not depreciated.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
The
right-to-use assets are presented as property, plant and equipment and, according to the useful lives of their respective underlying
assets and the characteristics of the lease agreements (term, transfer of the asset or exercise of call option), are depreciated
using the straight-line method. based on contractual deadlines.
|
25.3.
|
Concession
for exploration of oil and natural gas – Transfer of Rights Agreement (“Cessão
Onerosa”)
|
On
November 1, 2019, Petrobras entered into with the Federal Government the Amendment to the Transfer of Rights Agreement, the amount
of which was reimbursed to Petrobras by the Federal Government totaling US$ 9,058 million.
With
the signing of the Addendum, which formalized Petrobras 'right to receive the financial value of the revision from the Federal
Government, the company recognized accounts receivable in exchange for a credit in property, plant and equipment. On December
11, 2019, the total amount was received in the amount of R$ 34,414, updated by the SELIC rate in the amount of R$ 176 and totally
recorded in the financial result in that year.
The
information related to the result of the Bidding Round for the Surplus of the Transfer of Rights is presented in note 24.1 of
the financial statements of December 31, 2019.
|
25.4.
|
Oil
and Gas fields operated by Petrobras returned to ANP
|
During
2020, Petrobras decided to return the following fields to the ANP, mainly due to the lack of economic attractiveness of the assets:
Agulha, Caioba, Camorim, Dourado, Guaricema, Piranema, Piranema Sul, Salgo and Tatuí. Due to losses in its recoverable
values, recognized in previous years for some assets, the value of write-offs in 2020 was R$ 60, in other operating expenses (R$
304 for the fields of Juruá, Iraúna, Barra do Ipiranga, Lagoa Branca, Nativo Oeste, Jacupemba, Mariricu Oeste, Rio
Barra Seca, Rio Itaúnas Leste, Rio São Mateus Oeste and South of Sapinhoá in 2019).
|
25.5.
|
Capitalization
rate used to determine the amount of borrowing costs eligible for capitalization
|
The
weighted average rate of financial charges used in determining the amount of borrowing costs without specific destination to be
capitalized as an integral part of the assets under construction was 6.12% p.a. in the year ended December 31, 2020 (6.40% p.a.
in the year ended December 31, 2019).
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
Consolidated
|
Parent
Company
|
|
Rights
and Concessions
|
Software
|
Goodwill
|
Total
|
Total
|
Balance
at January 1, 2018
|
9,024
|
1,060
|
786
|
10,870
|
9,268
|
Addition
|
5,505
|
423
|
−
|
5,928
|
5,823
|
Concession
for exploration of oil and natural gas – Oil Surplus on the Transfer of rights agreement
|
63,141
|
−
|
−
|
63,141
|
63,141
|
Capitalized
borrowing costs
|
−
|
19
|
−
|
19
|
19
|
Write-offs
|
(38)
|
(22)
|
−
|
(60)
|
(49)
|
Transfers
|
(324)
|
(190)
|
(539)
|
(1,053)
|
5
|
Amortization
|
(42)
|
(315)
|
−
|
(357)
|
(303)
|
Impairment
recognition
|
(5)
|
−
|
−
|
(5)
|
−
|
Cumulative translation
adjustment
|
−
|
1
|
5
|
6
|
−
|
Balance
at December 31, 2019
|
77,261
|
976
|
252
|
78,489
|
77,904
|
Cost
|
77,755
|
5,929
|
252
|
83,936
|
82,449
|
Accumulated
amortization and impairment
|
(494)
|
(4,953)
|
−
|
(5,447)
|
(4,545)
|
Balance
at December 31, 2019
|
77,261
|
976
|
252
|
78,489
|
77,904
|
Addition
|
157
|
448
|
−
|
605
|
562
|
Capitalized
borrowing costs
|
−
|
9
|
−
|
9
|
9
|
Write-offs
|
(922)
|
(16)
|
−
|
(938)
|
(902)
|
Transfers
|
(13)
|
(5)
|
(148)
|
(166)
|
(17)
|
Amortization
|
(37)
|
(295)
|
−
|
(332)
|
(298)
|
Impairment
recognition
|
−
|
(30)
|
(31)
|
(61)
|
−
|
Cumulative translation
adjustment
|
18
|
2
|
52
|
72
|
−
|
Balance
at December 31, 2020
|
76,464
|
1,089
|
125
|
77,678
|
77,258
|
Cost
|
76,925
|
6,467
|
125
|
83,517
|
82,110
|
Accumulated
amortization and impairment
|
(461)
|
(5,378)
|
−
|
(5,839)
|
(4,852)
|
Balance
at December 31, 2020
|
76,464
|
1,089
|
125
|
77,678
|
77,258
|
Estimated
useful life in years
|
(*)
|
5
|
Indefinite
|
|
|
(*)
Mainly composed of assets with indefinite useful lives, which are reviewed annually to determine whether events and circumstances
continue to support an indefinite useful life assessment.
|
At
December 31, 2020, no impairment was identified on goodwill.
Result
of the 16th ANP Bidding Round
On
October 10, 2019, Petrobras acquired maritime block in the 16th Bidding Round under the Concession Regime, carried out by the
National Agency of Petroleum, Natural Gas and Biofuels (ANP). The signature bonus corresponding to Petrobras' participation was
R$ 1,431.
There
were no new bidding rounds in the concession regime during 2020.
Exploration
Rights - Surplus Volume of the Transfer of Rights Agreement and Production Sharing contract
On
November 6, 2019, the ANP held the Bidding Round for the Surplus Volume of the Transfer of Rights Agreement, when the Company
acquired 90% interest in the exploration and production rights of the surplus volume of Búzios field from the Assignment
Agreement, in partnership with CNODC Brasil Petróleo e Gás Ltda. (5%) and CNOOC Petroleum Brasil Ltda. (5%) and
100% interest of the surplus volume of the Itapu field. The signature bonuses were paid in the last quarter of 2019 and sharing
production contracts were signed with the regulatory authorities in the first quarter of 2020.
The
signature bonus corresponding to the Company's interest was R$ 61,375.
At
this moment, the co-participation agreement is being negotiated and should be concluded by September 2021, final basis to the
rights and obligations arising from the production sharing contract in Búzios and Itapu. Since it was a special bidding
round, related to the production surplus from fields with technical and commercial feasibility already defined, the values of
the signature bonuses paid will be transferred from intangible assets to property, plant and equipment after the finalization
of the co-participation agreement and eventual adjustments to the reserves volumes incorporated by Petrobras.
On
November 7, 2019, the ANP held the 6th Bidding Round under the production sharing regime. Petrobras acquired, in partnership
with CNODC Brasil Petróleo e Gás Ltda. (20%), the Aram block, located in the Santos Basin. Petrobras will be the
operator of the field with an 80% interest. The signature bonus corresponding to the Company's interest was R$ 4,040, totally
paid on December 27, 2019.
There
were no new bidding rounds in the production sharing regime during 2020.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Assumption
of additional participation in concession contracts
During
2020, partner companies in some exploratory projects decided to leave the business and the company assumed their participation
in the consortia. Assumption of rights was non-onerous, and did not imply disbursement by the company. Until December 31, 2020,
the ANP had approved the signing of the additives to the concession contracts for the exploration blocks ES-M-596 (originally
50% Petrobras and 50% Equinor), ES-M-671 (40% Petrobras; 35% Equinor and 25% Total) and ES-M-743 (40% Petrobras; 35% Equinor and
25% Total), in which the company now holds 100% interest.
The
transaction is similar to a donation, thus the installments related to the exploration rights assumed were assessed at fair value,
taking as a parameter the total value of the bonus offered to these blocks in the 11th bidding round. The value of the signature
bonus that corresponds to the shares assumed was recognized in intangible assets in the amount of R$ 128, and the corresponding
income as other operating income. The company received the installments due by the partners in the minimum exploratory program
(Programa Exploratório Mínimo - PEM).
Accounting
policy
Intangible
assets are measured at the acquisition cost, less accumulated amortization and impairment losses and comprise rights and concessions,
including the signature bonus paid for concessions and production sharing agreements for exploration and production of oil and
natural gas (capitalized acquisition costs), public service concessions, trademarks, patents, software and goodwill, arising from
a business combination, which is presented in the individual financial statements in Investment.
Internally-generated
intangible assets are not capitalized and are expensed as incurred, except for development costs that meet the recognition criteria
related to the completion and use of assets, future economic benefits, and others.
In
general, when the technical and commercial feasibility of oil and gas production is demonstrated for the first field in an area,
the value of the signature bonus corresponds to the right to explore, drill and produce oil and gas fields is reclassified to
property, plant and equipment at their full value. While they are in intangible assets, they are not amortized. Other intangible
assets with defined useful lives are amortized on a straight-line basis over their estimated useful lives.
If,
when defining the first field of a block, there are exploratory activities being carried out in different locations in the block,
so that oil and gas volumes can be estimated for other possible reservoirs in the area, then the value of the signature bonus
is partially reclassified to PP&E, based on the ratio between the volume of oil and gas expected (oil in place - VOIP) of
a specific reservoir and the total volume of oil and gas expected for all possible reservoirs in the area.
However,
if exploratory activities in the remaining areas do not result in technical and commercial viability, the corresponding value
of the signature bonus is not written off, but transferred to PP&E and added to the value of the signature bonus related to
the location that was previously assessed as technically and commercially viable.
Intangible
assets with an indefinite useful life are not amortized but are tested annually for impairment. Their useful lives are reviewed
annually.
|
26.2.
|
Exploration
rights returned to the Brazilian Agency of Petroleum, Natural Gas and Biofuels - Agência
Nacional de Petróleo, Gás Natural e Biocombustíveis (ANP)
|
In
2020, Petrobras decided to return 45 exploration blocks to the ANP (12 exploration blocks in 2019), located in the areas of Camamu-Almada,
Espírito Santo, Jequitinhonha, Potiguar, Recôncavo, Pelotas, Pernambuco-Paraíba, Santos and Sergipe-Alagoas
(Basins Sergipe-Alagoas, Potiguar, Recôncavo and Parnaíba in 2019). Exploratory rights in these blocks totaled R$
894 (R$ 11 in 2019) mainly due to the Peroba exploratory block in Santos (R$ 800).
.
The
Company annually tests its assets for impairment or when there is an indication that their carrying amount may not be recoverable.
During 2020, impairment losses were mainly recognized in the first quarter, arising from significant and adverse effects on the
oil and oil products market: (i) the outbreak of the COVID-19 pandemic, with a sharp reduction in the circulation of people and
in the world economic activity, causing a shock on demand of these products, and (ii) failure in negotiations between members
of Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, to define production levels, which
contributed to an increase in the global oil supply with a reduction in price in early March.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
These
events led the Company to adopt a set of measures, in the beginning of year, aiming at preserving cash generation, as well as
to revise the key assumptions of the 2020-2024 Strategic Plan, such as Brent prices, exchange rates, oil product spreads, among
others, whose effects were accounted for in the first quarter of 2020.
On
November 25, 2020, management concluded and approved its 2021-2025 Strategic Plan, considering a complete update of economic assumptions,
as well as its project portfolio and estimates of reserve volumes, which support the impairment tests run on the fourth quarter.
The
oil and gas production estimated in the period 2021-2025, without considering divestments, indicates a continuous growth focused
on the development of projects that generate higher value, with an increase in the participation of assets in the pre-salt layer,
which present lower lifting costs. During this period, 13 new production systems are expected to enter into operation, all of
which will be allocated to deep and ultra-deep water projects.
The
divestment portfolio contains more than 50 assets at different stages of the sale process and the expected investment for the
period 2021-2025 is US$ 55 billion, of which 84% is allocated to Oil and Gas Exploration and Production (E&P) , with approximately
US$ 32 billion destined for pre-salt assets.
The
following is the total loss on impairment of assets, net of reversal, by nature of assets or CGUs, recognized in the income for
the year:
|
Consolidated
|
Assets
or CGU by nature (*)
|
Carrying
amount
|
Recoverable
amount (**)
|
Impairment
(Reversal) (***)
|
Business
Segment
|
Comments
|
|
2020
|
Property,
plant and equipment and intangible assets
|
|
|
|
|
|
|
|
Producing
properties relating to oil and gas activities in Brazil (several CGUs)
|
220,449
|
210,524
|
34,215
|
E&P
– Brazil
|
item
(a1)
|
Oil
and gas production and drilling equipment in Brazil
|
613
|
−
|
613
|
E&P
- Brazil
|
item
(b1)
|
Comperj
|
1,391
|
2,732
|
(1,340)
|
RTM
– Brazil
|
item
(c1)
|
Second
refining unit in RNEST
|
2,132
|
2,018
|
114
|
RTM
– Brazil
|
item
(d1)
|
Corporate
segment
|
788
|
−
|
788
|
Corporate
|
item
(e)
|
Others
|
|
|
(38)
|
Several
|
|
|
|
|
34,352
|
|
|
|
|
Assets
classified as held for sale
|
|
|
|
|
|
|
|
Oil
and gas producing Fields – Several projects
|
−
|
1,405
|
(412)
|
E&P
- Brazil
|
item
32.1
|
Cartola
and Ataulfo Alves vessels
|
416
|
97
|
319
|
RTM
– Brazil
|
item
32.1
|
|
|
|
|
|
|
Total
2020
|
|
|
34,259
|
|
|
|
|
|
Carrying
amount
|
Recoverable
amount (**)
|
Impairment
(Reversal)
|
Business
Segment
|
Comments
|
|
2019
|
Property,
plant and equipment and intangible assets
|
|
|
|
|
|
|
|
Producing
properties relating to oil and gas activities in Brazil (several CGUs)
|
425,368
|
794,025
|
7,653
|
E&P
– Brazil
|
item
(a2)
|
Transpetro’s
fleet of vessels
|
5,430
|
5,855
|
(425)
|
RTM
– Brazil
|
item
(f)
|
Oil
and gas production and drilling equipment in Brazil
|
1,264
|
−
|
1,264
|
E&P
– Brazil
|
item
(b2)
|
Unidade
de Fertilizantes Nitrogenados - UFN III
|
824
|
−
|
824
|
RTM
– Brazil
|
item
(g)
|
Comperj
|
1,329
|
470
|
859
|
RTM
– Brazil
|
item
(c2)
|
Second
refining unit in RNEST
|
4,206
|
2,007
|
2,199
|
RTM
– Brazil
|
item
(d2)
|
Oil
and gas production and drilling equipment abroad
|
1,381
|
60
|
1,321
|
E&P
– Abroad
|
item
(h)
|
Others
|
133
|
−
|
133
|
Several
|
|
|
|
|
13,828
|
|
|
|
|
Assets
classified as held for sale
|
|
|
|
|
|
|
|
Producing
properties Pampo and Enchova fields
|
1,321
|
3,257
|
(1,936)
|
E&P
– Brazil
|
item
32.1
|
Producing
properties - Frade
|
77
|
422
|
(345)
|
E&P
– Brazil
|
item
32.1
|
Producing
properties - Maromba
|
−
|
276
|
(276)
|
E&P
– Brazil
|
item
32.1
|
POG
|
1,791
|
1,425
|
366
|
E&P
– Abroad
|
item
32.1
|
Others
|
2,387
|
1,886
|
(7)
|
Several
|
|
Total
2019
|
|
|
11,630
|
|
|
|
|
(*)The
net book values and recoverable values presented refer only to assets or CGUs that have suffered
losses due to impairment or reversals.
|
(**)The
recoverable amount used to evaluate the test is the value in use, except for the assets of equipment and installations linked
to the activity of oil and gas production and drilling of wells and assets held for sale, for which the recoverable value
used for testing is the fair value.
|
(***)
The recoverable and book values of the table considers, by nature, the losses and reversals calculated individually
for each CGU. Thus, there are cases in which reversals of impairment are limited to the amount of losses previously recorded,
making the column "Impairment (Reversal)" not representing the comparison between the columns "Carrying Amount"
and "Recoverable Amount".
|
27.1.
|
Impairment
of property, plant and equipment and intangible assets
|
In
assessing the recoverability of property, plant and equipment and intangible assets, tested individually or grouped in cash-generating
units - CGU, the company considered the following projections:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
·
|
useful
life based on the expected use of the assets or set of assets that make up the CGU, considering
the company's maintenance policy;
|
|
·
|
assumptions
and budgets approved by Management for the period corresponding to the expected life
cycle, due to the characteristics of the businesses; and
|
|
·
|
pre-tax
discount rate, which derives from the post-tax weighted average cost of capital (WACC)
calculation methodology, adjusted by a specific risk premium in the case of projects
postponed for an extended period or risk country-specific in the case of assets abroad.
The use of post-tax discount rates in determining the amounts in use does not result
in materially different recoverable amounts if pre-tax discount rates had been used.
|
Post-tax
discount rates, excluding inflation, applied in the tests were:
Activity
|
12.31.2020
|
12.31.
2019
|
Producing
properties relating to oil and gas activities in Brazil
|
7.1%
p.a.
|
6.8%
p.a.
|
RTM
in Brazil
|
6.1%
p.a.
|
6.4%
p.a.
|
RTM
in Brazil – postponed projects
|
7.4%
p.a.
|
7.8%
p.a.
|
Gas
logistics
|
6.4%
p.a.
|
6.3%
p.a.
|
Transport
in Brazil
|
5.4%
p.a.
|
from
4,3% to 5,8% p.a.
|
The
estimates of the key assumptions in the cash flow projections to determine the value in use of the CGUs in 2020 (*) were:
Strategic
Plan 2021-2025
|
2021
|
2022
|
2023
|
2024
|
2025
|
Long
Term Average
|
Average
Brent in real terms (US$ barrel)
|
45
|
45
|
50
|
50
|
50
|
50
|
Average
exchange rate in real terms - R$ /US$ (at 2020 prices)
|
5.50
|
4.69
|
4.46
|
4.28
|
4.07
|
3.76
|
(*)
In the first quarter recoverability tests, the average price of Brent oil ranged from US$ 25/barrel to US$ 50/barrel and
the average exchange rate of R $ 5.09/US$ to R$ 3.78/US$.
|
In
2019, the projections used in the impairment tests were:
Strategic
Plan 2020-2024
|
2020
|
2021
|
2022
|
2023
|
2024
|
Long
Term Average
|
Average
Brent in real terms (US$ barrel)
|
65
|
65
|
65
|
65
|
65
|
65
|
Average
exchange rate in real terms - R$ /US$ (at 2018 prices)
|
3.85
|
3.79
|
3.75
|
3.72
|
3.70
|
3.60
|
Throughout
2020, Management identified and evaluated the following changes in its CGUs:
|
(i)
|
CGU
Polo Norte – exclusion of platforms PCH-1, PCH-2 and PNA-2, and fields of Anequim,
Bagre, Cherne, Congro, Garoupa, Malhado, Namorado, Parati and Viola, who had their activities
hibernated, with no expected resumption. Currently, this CGU is formed by Marlim, Albacora
and Voador fields and remaining platforms;
|
|
(ii)
|
CGU
Fazenda Alegre group - exclusion of fields of Campo Grande, Córrego Cedro Norte,
Córrego Cedro Norte Sul, Córrego Dourado, Fazenda São Jorge, Inhambu,
Jacutinga, Lagoa Bonita, Seriema e Tabuiaiá, due to the divestments occurred.
Currently, this CGU is formed by Cancã and Fazenda Alegre fields.
|
|
(iii)
|
CGU
CVIT group: extinction of the group of fields, which was formed by Golfinho and Canapu
fields, since the Company decided to end Canapu field operations. The two fields are
now tested separately.
|
|
·
|
CGUs
of Gas and Power Segment:
|
|
(i)
|
CGU
Natural gas – exclusion of the Atalaia Natural Gas Processing Unit (UPGN), due
to the lack of resources for its operational continuity in Strategic Planning 2021-2025.
The unit is tested separately.
|
|
(ii)
|
CGUs
FAFENs - extinction of CGUs FAFEN-BA and FAFEN-SE fertilizer plants, since the Company
signed a lease agreement relating to these fertilizer plants with Proquigel Química,
classifying it as a financial lease, with the recognition of a receivable and the write-off
of remaining carrying amounts classified as PP&E.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
(i)
|
Transportation
CGU - vessels Cartola and Ataulfo Alves were excluded from this CGU, due to the classification
of these vessels as held for sale, resulting from the closure of its operations and the
sale decision by Transpetro Management..
|
Further
information on the key assumptions for asset impairment tests and the definitions of the CGUs are presented in notes 4.2 and 4.3,
respectively, and involve management's judgments and assessment based on its business and management model.
Information
on the main losses in the recovery value / reversals of losses on property, plant and equipment or intangible assets is presented
below:
a1)
Producing properties in Brazil – 2020
Our
valuations of assets linked to oil and gas production fields in Brazil resulted in net losses in the amount of R$ 34,215, predominantly
in the production CGUs and in the corporate assets that provide service in the fields below, and reflect the hibernations that
occurred in the first quarter and the update of key planning assumptions of the strategic plan, in particular, the estimate of
a fall in the price of Brent, the devaluation of the Real against the Dollar and the retraction of global GDP and demand. The
main CGUs with losses were:
CGU
|
Basin
|
Area
|
Impairment
Losses
|
Net
Carrying amount (*)
|
Polo
Norte
|
Campos
Basin
|
Post-Salt
|
6,337
|
24,782
|
Roncador
|
Campos
Basin
|
Post-Salt
|
5,617
|
37,783
|
Carmópolis
|
Sergipe
Basin
|
Land
and Shallow Waters
|
3,023
|
660
|
Polo
Berbigão-Sururu
|
Santos
Basin
|
Pre-Salt
|
2,286
|
14,312
|
Albacora
Leste
|
Campos
Basin
|
Post-Salt
|
2,256
|
7,165
|
Namorado
|
Campos
Basin
|
Post-Salt
|
1,504
|
|
Golfinho
|
Espírito
Santo Basin
|
Post-Salt
|
1,300
|
946
|
Marlim
Sul
|
Campos
Basin
|
Post-Salt
|
910
|
30,729
|
Viola
|
Campos
Basin
|
Post-Salt
|
909
|
-
|
Papa-Terra
|
Campos
Basin
|
Post-Salt
|
805
|
6
|
Cherne
|
Campos
Basin
|
Post-Salt
|
778
|
-
|
Garoupa
|
Campos
Basin
|
Post-Salt
|
762
|
-
|
Polo
Canto do Amaro
|
Potiguar
Basin
|
Land
and Shallow Waters
|
709
|
1,089
|
Malhado
|
Campos
Basin
|
Post-Salt
|
658
|
-
|
Congro
|
Campos
Basin
|
Post-Salt
|
651
|
-
|
Polo
Uruguá
|
Santos
Basin
|
Post-Salt
|
555
|
670
|
Siririzinho
|
Sergipe-Alagoas
Basin
|
Land
and Shallow Waters
|
443
|
313
|
Others
(**)
|
|
|
4,712
|
67,779
|
Total
|
|
|
34,215
|
186,234
|
|
|
|
|
|
(*) Remaining
asset value, with values equal to zero corresponding to fields that were hibernated in the first quarter of 2020
and that had full losses.
(**) Refers
to losses and reversals in 92 CGUs.
a2)
Producing properties in Brazil – 2019
Our
valuations of assets linked to oil and gas production fields in Brazil resulted in net losses of R$ 7,653. This amount is mainly
due to:
|
·
|
Losses
in the amount of R$ 8,612, mainly related to the CGUs of Papa-Terra (R$ 1,517), Polo
Uruguá (R$ 1,415), Polo CVIT (R$ 847), Corvina (R$ 635), Piranema (R$ 525), Camorim
(R$ 449), Pirambu (R$ 419), Polo Merluza (R$ 405), Polo Miranga (R$ 313), Guaricema (R$
311) and Polo Água grande (R$ 295) mainly due to the drop in estimates for the
average Brent price over the entire projection horizon and the increase in the provision
for the dismantling of areas, due to the reduction in risk-free rates and changes in
the removal and treatment schedule for the production facilities of oil and gas; and
|
|
·
|
Reversal
of losses in the amount of R$ 219, mainly related to the Polo Peroá (R$ 125) and
Castanhal (R$ 49) CGUs, mostly due to gains in the production curve and accelerated depreciation
tax benefit introduced by law 13,586 / 2017, relating to the new E&P tax model.
|
b1)
Oil and gas production and drilling equipment in Brazil - 2020
Our
assessments identified a loss of R$ 615 related to equipment and structures in the E&P segment. This loss is mainly due to
the Management's decision not to proceed with the Inhaúma Logistics Terminal Adequacy project (Estaleiro Inhaúma),
with no budget forecast within the horizon of the Strategic Plan 2021-2025, leading to the recognition of losses in the amount
of R$ 357.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
b2)
Oil and gas production and drilling equipment in Brazil - 2019
The
company decided not to reuse the P-37 platform in the Marlim field, which led to its exclusion from CGU Polo Norte and its classification
as an isolated asset, with the recognition of losses due to devaluation in the amount of R$ 1,264.
c1)
Comperj – 2020
In
our Comperj recoverability assessments, the company recognized a reversal of losses in the amount of R$ 1,340, mainly due to the
reduction in the estimated investment for the completion of the work in the utilities of the Train 1, resulting from the devaluation
of the real against the dollar and optimization of the project as a whole.
c2)
Comperj – 2019
Investments
with environmental licensing, resulting from the conduct adjustment term to end public civil action that questions the environmental
licensing of Comperj, as well as investments made in the utilities of Comperj Train 1, which are part of the joint infrastructure
necessary for the flow and processing of natural gas from the pre-salt pole of the Santos Basin, led to the recognition of net
losses of R$ 859.
d1)
Second refining unit of RNEST – 2020
In
our evaluations, the cash flows of the value in use of the refining assets of the 2nd Train of RNEST incorporate the postponement
of the forecast of its entry into operation in two years, implying the recognition of losses in the amount of R$ 114.
d2)
Second refining unit of RNEST – 2019
The
cash flows of the value in use of the refining assets of the 2nd Train of RNEST considered the postponement of the forecast of
its start-up in 3 years and 8 months, as approved in the Strategic Plan 2020-2024, which implied the recognition of losses in
the amount of R$ 2,199.
e)
Corporate facilities – 2020
The
company decided to hibernate an administrative building, in the state of Bahia, as a result of the vacancy of the facilities,
resulting in the recognition of loss on the right to use asset in the amount of R$ 788.
The
determinants for the recognition of losses or reversals arising from the impairment test on property, plant and equipment or intangible
assets of other business areas are presented below during the year 2019.
f)
Transpetro’s fleet of vessels - 2019
The
increase in the R$ / US$ exchange rate projections of the 2020-2024 Strategic Plan, compared to the previous plan, had a positive
effect on the cash flow in Reais of the CGU, given that freight prices are quoted in US dollars, leading to a reversal of losses
of R$ 425.
g)
Fertilizer plant - UFN III – 2019
The
recognition of losses of R$ 824 arises from the company's decision not to resume work for the conclusion of the Unidade de Fertilizantes
Nitrogenados III, in Três Lagoas, in the state of Mato Grosso do Sul.
h)
Oil and gas production and drilling equipment abroad – 2019
With
the sale of the NS-30 drillship (Vitória 10,000), concluded in December 2019, Drill Ship International BV (DSI), a subsidiary
of PIB BV, recognized losses of R$ 1,321 due to the difference between the expected sale value and the value accounting of the
asset.
27.1.1Assets
most sensitive to future impairment
The
amount of impairment loss is based on the difference between the book value of the asset or CGU and its respective recoverable
amount. In our sensitivity analyzes, we observed that variations in recoverable values of up to 10%, positive or
negative, can potentially represent relevant effects on some specific assets or CGUs, as they would be more susceptible to the
recognition of losses or reversals due to impairment in the future, considering significant changes in the assumptions that support
the assessment.
The
following tables contain information on: (a) the assets or CGUs with the potential for additional impairment losses in the event
of a negative variation of 10% of the recoverable amounts; and (b) assets or CGUs with the potential to reverse impairment in
the event of a positive variation of 10% of their recoverable values:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
|
Consolidated
|
(a)
Sensitivity - negative variation of 10% of recoverable values
|
Business
segment
|
Carrying
amount
|
Recoverable
amount (*)
|
Sensitivity
|
Assets
close to their recoverable values with potential for impairment - Oil and gas production fields in Brazil (5
CGUs)
|
E&P
|
3,101
|
3,005
|
96
|
Assets
with existing partial impairment losses:
|
|
|
|
|
Oil
and gas production fields in Brazil (39 CGUs)
|
E&P
|
136,299
|
122,669
|
13,630
|
Refineries
(3 CGUs)
|
RTM
|
4,905
|
4,415
|
490
|
Total
potential of losses
|
|
144,305
|
130,089
|
14,216
|
|
|
Consolidated
|
(b)
Sensitivity – positive variation of 10% of recoverable values
|
Business
Segment
|
Carrying
amount
|
Recoverable
amount (*)
|
Sensitivity
(**)
|
Assets
with existing impairment losses - potential for reversal:
|
|
|
|
|
Oil
and gas production fields in Brazil (39 CGUs)
|
E&P
|
136,299
|
149,929
|
9,484
|
Refineries
(3 CGUs)
|
RTM
|
4,905
|
5,396
|
490
|
Total
potential of reversal
|
|
141,204
|
155,325
|
9,974
|
(*)
The recoverable amount was raised with -10% and + 10% considering the recoverable values estimated on 12/31/2020.
|
(**)
The calculated sensitivity, when occurs the positive variation of 10% of the recoverable values, considers the amount of impairment
to be reversed in the limit of the accumulated impairment balance of the impacted CGUs or in the limit of their recoverable
values, whichever is less.
|
Accounting
policy
The
company assesses property, plant and equipment and intangible assets when there are indications of non-recovery of their book
value. This valuation is performed for the individual asset or the smallest identifiable group of assets that generates cash inflows
largely independent of cash inflows from other assets or other groups of assets (CGUs). Note 4.3 presents detailed information
on the company's CGUs.
The
assets linked to the development and production of oil and natural gas (fields or hubs) and those that have an indefinite useful
life, such as goodwill for future profitability, are tested for impairment annually, regardless of whether there are indications
loss of value.
Considering
the synergies of the Petrobras Group and the expectation of using the assets until the end of their useful life, usually the recoverable
value used in carrying out the recoverability test is the value in use, except when specifically indicated. Such cases involve
situations in which the company identifies and assesses that assumptions that would be used by market participants in measuring
fair value to price the asset or the CGU differ from Petrobras' exclusive assumptions.
Reversals
of previously recognized losses may occur, except for losses due to impairment of goodwill due to expected future profitability
(goodwill).
|
27.2.
|
Assets
classified as held for sale
|
In
2020, as a result of the approval of the Company's Management to dispose of several assets in the E&P segment, according to
note 33, the company recognized reversals in the amount of R$ 93, considering the net fair value of selling expenses, predominantly,
in the following assets:
|
•
|
Polo
Recôncavo Project - set of 14 concessions located in shallow water and on land,
with recognition of loss reversal in the amount of R$ 178;
|
|
•
|
Polo
Rio Ventura Project - set of 8 onshore concessions, with recognition of loss reversal
in the amount of R$ 95;
|
|
•
|
Polo
Fazenda Belém Project - onshore fields of Fazenda Belém and Icapuí,
with recognition of loss reversal in the amount of R$ 70;
|
|
•
|
Vessels
Cartola and Ataulfo Alves - Transpetro vessels traded, with loss recognition
in the amount of R$ 319;
|
|
•
|
Other
Projects - reversals of losses in the Polo Remanso projects (R$ 20); Polo Cricaré
(R$ 17) and Polo Pescada (R$ 6);
|
In
2019, reversals of impairment losses totaled R$ 2,198, mainly due to the reversals in the Pampo and Enchova projects (R$ 1,936);
Bispo - Frade field (R$ 345) and Mangalarga 2 - Maromba field (R$ 276), offset by losses due to devaluation in the amount of R$
366 from the sale of Petrobras Oil & Gas B.V. (PO & GBV).
The
accounting practice applied to assets and liabilities classified as held for sale is described in note 32.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
27.3.
|
Investments
in associates and joint ventures (including goodwill)
|
In
assessing the recoverability of investments in associates and joint ventures, including goodwill, the value in use method was
used, based on projections that considered: (i) projection horizon for the 5 to 12-year interval, with perpetuity without growth
; (ii) assumptions and budgets approved by the company's management; and (iii) post-tax discount rate, which derives from WACC
or CAPM, according to the application methodology, specified for each case below.
Accounting
Policy
Investments
in associates and jointly controlled projects are tested individually for the purpose of assessing their recoverability. In applying
the test, the carrying amount of the investment, including goodwill, is compared with its recoverable amount.
Generally,
the recoverable amount is the value in use, except when specifically indicated, proportional to the participation in the present
value of the estimated future cash flows of the associate or joint venture, representing future dividend flows and other distributions.
27.3.1Investment
in publicly traded associate (Braskem S.A. e Petrobras Distribuidora S.A. - BR)
Braskem
S.A.
Braskem
S.A. is a publicly traded company, with shares traded on stock exchanges in Brazil and abroad. Based on market prices in Brazil,
on December 31, 2020, Petrobras' stake in Braskem SA's common shares (47% of the total) and preferred shares (21.9% of the total)
was valued at R$ 7,143, as described in note 31.4. As of December 31, 2020, approximately 3% of the common shares of this investee
are owned by non-signatories to the Shareholders' Agreement and their trading is extremely limited.
Considering
the operational relationship between Petrobras and Braskem S.A., the impairment test of the investment in this associate was performed
based on its value in use, proportional to the company's participation in the present value of Braskem S.A.'s estimated future
cash flows, representing future dividend flows and other distributions of the investee. The recoverability assessments did not
indicate the existence of impairment losses.
The
main estimates used in the cash flow projections to determine the value in use of Braskem S.A. considered the price projections
for raw materials and petrochemicals reflecting international trends; the evolution of sales of petrochemical products, estimated
based on the growth of the Gross Domestic Product - GDP (Brazilian and global); post-tax discount rate of 8.7% per year, in constant
currency, considering the cost of equity capital given the methodology adopted in the flow of dividends; and reductions in the
EBITDA margin, following the growth cycle of the petrochemical industry in the coming years, with a reduction in the long term.
The Brent oil exchange rate and price assumptions were those previously disclosed.
Petrobras
Distribuidora S.A. – BR
In
July 2019, with the follow-on of BR Distribuidora's shares, the company became an associate. Considering the shares traded on
the stock exchange in an active market, BR Distribuidora's recoverable amount in the year ended on December 31, 2019 was evaluated
based on fair value, without presenting indicative of loss.
On
August 26, 2020, the Board of Directors of Petrobras (CA) approved the process of divesting all of its shareholding in the company.
In this context, as it is greater than fair value, the company assessed the recoverability of the investment based on the value
in use, but considering the scenario that contemplates the intention to sell the shares. The recoverability assessments led to
the recognition of losses in the amount of R$ 2,409.
The
post-tax discount rate applied was 11.1% per year, in nominal terms, taking into account the cost of equity, given the methodology
adopted in the value in use.
27.3.2Investments
in state-controlled natural gas distributors
On
December 31, 2020, the recoverability assessments did not indicate the existence of impairment losses, the recoverable amount
being R$ 5,759, considering a post-tax discount rate of 5.7%, in constant currency.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
27.3.3Impairment
losses on equity-method investments
In
2020, the company recognized net losses due to devaluation on the result of the participation of other investments in the amount
of R$ 286 (R$ 16 in 2019), mainly due to the losses in the joint venture abroad MP Gulf of Mexico in the amount of R$ 287, arising
from the review of key assumptions and considering a real post-tax discount rate of 5.4% pa, as well as BSBIOS in the amount of
$ 115, resulting from the classification of the investment as held for sale, after the signing of the purchase and sale contract
by Petrobras Biocombustível (PBio) with RP Participações em Biocombustíveis.
.
|
28.
|
Exploration
and evaluation of oil and gas reserves
|
Exploration
and evaluation activities include the search for oil and natural gas reserves, from obtaining legal rights to explore a specific
area to declaring the technical and commercial viability of the reserves.
The
movements in capitalized costs related to exploratory wells and the balances of amounts paid for obtaining rights and concessions
for oil and natural gas exploration, both directly related to exploratory activities in unproven reserves, are shown in the table
below:
|
Consolidated
|
Capitalized
Exploratory Well Costs / Capitalized Acquisition Costs (*)
|
12.31.2020
|
12.31.2019
|
Property
plant and equipment
|
|
|
Opening
Balance
|
17,175
|
16,010
|
Additions
|
2,168
|
2,024
|
Write-offs
|
(1,066)
|
(877)
|
Transfers
|
(2,667)
|
−
|
Cumulative
translation adjustment
|
106
|
18
|
Closing
Balance
|
15,716
|
17,175
|
Intangible
Assets (**)
|
75,489
|
76,256
|
Capitalized
Exploratory Well Costs / Capitalized Acquisition Costs
|
91,205
|
93,431
|
(*) Amounts
capitalized and subsequently expensed in the same period have been excluded from this table.
|
(**)The
signature bonuses related to the results of the 16th ANP bidding round and Surplus Oil of Transfer of Rights Agreement, in
the amount of R$ 63,141, are described in note 24.1. in Petrobras Financial Statements of December 31, 2019.
|
The
transfers refer to the completion of exploratory well projects that are now associated with the proven reserves of existing fields,
mainly Albacora (R$ 2,268) and Búzios (R$ 392).
The
exploratory costs recognized in the statement of income and the cash flows related to the activities of valuation and exploration
of oil and natural gas are shown below:
|
Consolidated
|
|
2020
|
2019
|
Exploration
costs recognized in the statement of income
|
Jan-Dec
|
Jan-Dec
|
Geological
and geophysical expenses
|
1,522
|
1,897
|
Exploration
expenditures written off (includes dry wells and signature bonuses)
|
2,379
|
1,250
|
Contractual
penalties
|
202
|
16
|
Other
exploration expenses
|
67
|
34
|
Total
expenses
|
4,170
|
3,197
|
|
|
|
Cash
used in:
|
|
|
Operating
activities
|
1,589
|
1,931
|
Investment
activities
|
2,727
|
70,983
|
|
4,316
|
72,914
|
|
In
2020, the projects without economic viability refer mainly to the write-off of exploratory wells in Parque dos Doces in the Espírito
Santo Basin (R$ 973) and the signature bonus for the Peroba exploration block (R$ 800).
In
2020, Petrobras recognized provisions arising from potential contractual penalties for not meeting the required minimum percentages
of local content for 186 blocks with the exploratory phase closed (125 blocks in 2019).
Accounting
policy
Expenses
with exploration and development of oil and natural gas production are accounted for in accordance with the successful efforts’
method, as follows:
|
·
|
Expenses
related to geology and geophysical activities related to the oil and gas exploration
and evaluation phase until the time when the technical and commercial viability of oil
and gas production is demonstrated are recognized as an expense in the period in which
they are incurred;
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
·
|
Amounts
related to obtaining rights and concessions for oil and natural gas exploration are initially
capitalized in intangible assets. When the technical and commercial feasibility of producing
oil and gas can be demonstrated, such rights and concessions are reclassified to property,
plant and equipment. More information in note 26, on accounting practice for intangible
assets;
|
|
·
|
Exploratory
costs directly associated with the drilling of wells, including equipment and installations,
are initially capitalized in property, plant and equipment until proven reserves related
to the well are confirmed or not. In certain cases, reserves are identified, but cannot
be classified as proven when drilling is completed. In these cases, the costs before
and after the drilling of the well continue to be capitalized if the volume of discovered
reserves justifies its completion as a producing well and studies of the reserves and
the economic and operational viability of the enterprise are in progress. This information
is detailed in note 28.1 on capitalization time. An internal commission of technical
executives of the company reviews the conditions of each well on a monthly basis, taking
into account the data on geology, geophysics and engineering, economic aspects, operating
methods and government regulations. In note 4.1, there is more information on the calculation
of the company's proven oil and gas reserves;
|
|
·
|
Dry
exploratory wells or those without economic viability and the other costs linked to non-commercial
reserves are recognized as an expense in the period, when identified as such, by the
internal committee of technical executives mentioned in the previous topic; and
|
|
·
|
All
costs incurred with the effort to develop the production of an area declared commercial
(with proven and economically viable reserves) are capitalized in property, plant and
equipment. This category includes costs with development wells; with the construction
of platforms and gas processing plants; with the construction of equipment and facilities
necessary for the extraction, handling, storage, processing or treatment of oil and gas;
and with the construction of oil and gas flow systems (pipelines), storage and disposal
of waste.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
28.1.
|
Aging
of Capitalized Exploratory Well Costs
|
The
table below shows the costs and the number of exploratory wells capitalized by time of existence, considering the completion date
of the drilling activities. It also demonstrates the number of projects for which the costs of exploratory wells have been capitalized
for more than one year:
|
|
Aging
of capitalized exploratory well costs (*)
|
2020
|
2019
|
Exploratory
well costs capitalized for a period of one year
|
615
|
884
|
Exploratory
well costs capitalized for a period greater than one year
|
15,101
|
16,291
|
Total
capitalized exploratory well costs
|
15,716
|
17,175
|
Number
of projects relating to exploratory well costs capitalized for a period greater than one year
|
38
|
43
|
|
|
2020
|
Number
of wells
|
2019
|
790
|
6
|
2018
|
230
|
1
|
2017
|
205
|
1
|
2016
|
299
|
3
|
2015
and previous years
|
13,577
|
80
|
Total
|
15,101
|
91
|
(*)
Amounts paid for obtaining rights and concessions for exploration of oil and gas (capitalized acquisition costs) are not included.
|
|
Of
the total of R$ 15,101 for 38 projects, which include 91 wells in progress for more than a year since the completion of drilling
activities, R$ 14,387 refer to wells located in areas where drilling activities are already underway or firmly planned for the
near future, whose "Evaluation Plan" was submitted for approval by the ANP, and R$ 714 refers to activities inherent
to the process of analyzing technical and economic feasibility to define reserves and decide on the possible development of project
production.
|
29.
|
Collateral
for crude oil exploration concession agreements
|
Petrobras
granted guarantees to the National Petroleum, Natural Gas and Biofuels Agency - ANP in the total amount of R$ 8,478 for the Minimum
Exploratory Programs provided for in the exploration area concession contracts, with R$ 8,020 net of commitments already in effect
remaining in force. Of this amount, R$ 6,529 corresponds to the pledge of oil from fields previously identified and already in
the production phase and R$ 1,491 refer to bank guarantees.
.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
30.
|
Joint
ventures in E&P activities
|
In
line with its strategic objectives, Petrobras acts in association with other companies in joint ventures in Brazil as holder of
exploration and production rights for oil and natural gas in the concession and production sharing regimes.
As
of December 31, 2020, the company holds interests in 98 consortia in partnership with 40 partner companies, among which Petrobras
is an operator in 55 consortia (112 consortia, 42 partners and operator of 64 partnerships on December 31, 2019). The partnerships
formed in 2019 and 2020 are described below:
Consortium
|
Location
|
%
Petrobras
|
%
Partners
|
Operator
|
Year
|
Additional
Information
|
ANP
Bonus
Petrobras
portion
|
Tartaruga
Verde Módulo III Espadarte
|
Campos
Basin
|
50%
|
Petronas
– 50%
|
Petrobras
|
2019
|
Concession
– Disposal of 50% to Petronas
|
N/A
|
Búzios
(Transfer of Rights Surplus)
|
Santos
basin pre-salt
|
90%
|
CNODC
– 5%
CNOOC
– 5%
|
Petrobras
|
2019
|
Production
sharing – Transfer of Rights Surplus Production ANP Bidding Round
|
61,375
|
C-M-477
|
Campos
Basin
|
70%
|
BP
– 30%
|
Petrobras
|
2019
|
Concession
- 16th ANP Bidding Round
|
1,431
|
Aram
|
Santos
basin pre-salt
|
80%
|
CNODC
– 20%
|
Petrobras
|
2019
|
Production
sharing – 6th ANP Bidding Round
|
4,040
|
BT-SEAL-13A
|
Sergipe
Alagoas basin
|
50%
|
Petrogal
– 50%
|
Petrogal
|
2020
|
Concession
– split
|
N/A
|
BT-POT-55A
|
Potiguar
basin
|
70%
|
Sonangol
– 30%
|
Sonangol
|
2020
|
Concession
– split
|
N/A
|
Petrobras'
performance in partnerships brings benefits through risk sharing, increased investment capacity, technical and / or technological
exchange, which ultimately aim at growth in oil and gas production in the explored areas. The following table presents the production
referring to Petrobras's participation in the main fields in which the Company is the operator in the partnership:
Field
|
Location
|
%
Petrobras
|
%
Partners
|
Petrobras
production portion in 2020 (kboed)
|
Regime
|
Tupi
(BMS-11)
|
Santos
basin pre-salt
|
65%
|
Shell
– 25%
Petrogal
– 10%
|
790,4
|
Concession
|
Roncador
|
Campos
basin
|
75%
|
Equinor
– 25%
|
132,1
|
Concession
|
Sapinhoá
(BMS-9)
|
Santos
basin pre-salt
|
45%
|
Shell
– 30%
Repsol
Sinopec – 25%
|
119,0
|
Concession
|
Albacora
Leste
|
Campos
basin
|
90%
|
Repsol
Sinopec - 10%
|
31,2
|
Concession
|
Mero
|
Santos
basin pre-salt
|
40%
|
Total
– 20%
Shell
– 20%
CNODC
– 10%
CNOOC
– 10%
|
12,5
|
Production
sharing
|
Papa-Terra
|
Campos
basin
|
62.5%
|
Chevron
– 37.5%
|
12,2
|
Concession
|
Manati
|
Camamu
basin
|
35%
|
Enauta
Energia S.A. – 45%
Brasoil
– 10%
Geopark
– 10%
|
5,3
|
Concession
|
Berbigão
|
Santos
basin pre-salt
|
42.5%
|
Shell
– 25%
Total
– 22.5%
Petrogal
– 10%
|
26,7
|
Concession
|
Sururu
|
Santos
basin pre-salt
|
42.5%
|
Shell
– 25%
Total
– 22.5%
Petrogal
– 10%
|
8,7
|
Concession
|
Oeste
de Atapu
|
Santos
basin pre-salt
|
42.5%
|
Shell
– 25%
Total
– 22.5%
Petrogal
– 10%
|
1,6
|
Concession
|
Tartaruga
Verde
|
Campos
basin
|
50%
|
Petronas
– 50%
|
48,.8
|
Concession
|
Total
|
|
|
|
1,188.5
|
|
Accounting
practice
The
operational E&P partnerships in Petrobras are classified as joint operations and, as such, the company recognizes with respect
to its interests: i) its assets, including its share of any assets held jointly ii) its liabilities , including its share of any
liabilities assumed jointly; iii) its sales revenue corresponding to the proportion of its participation in the production resulting
from the joint operation; iv) its portion on the sales revenue realized directly by the joint operation; and v) your expenses,
including your portion of any expenses incurred together.
Assets,
liabilities, income and expenses related to the participation in a joint operation are accounted for in accordance with the specific
accounting policies applicable to assets, liabilities, income and expenses.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
30.1.
|
Unitization
Agreements
|
Petrobras
has Production Individualization Agreements (AIP) signed in Brazil with partner companies (Shell, Petrogal, Repsol and Total)
in E&P consortia. These agreements will result in equalization of production volumes, expenses and others, generating amounts
receivable and payable referring to the Tupi, Sépia, Atapu, Berbigão, Sururu, Albacora Leste and other fields.
Equalization
provisions: Berbigão, Sururu, Albacora Leste and others.
The
change in the amount payable is shown below:
|
Consolidated
|
|
2020
|
2019
|
Opening
balance
|
456
|
617
|
Additions/(Write-offs)
on PP&E
|
1,500
|
205
|
Indexation
charges
|
-
|
16
|
Payments
made
|
(89)
|
(379)
|
Other
income and expenses
|
58
|
(3)
|
Closing
balance
|
1,925
|
456
|
|
As
of December 31, 2020, Petrobras has an estimated amount to pay for the execution of the AIPs submitted to the ANP for approval
of R$ 1,925 (R$ 456 on December 31, 2019). In 2020, these agreements resulted in payments and recognition of additions and write-offs
in property, plant and equipment, in addition to other net expenses, reflecting the best available estimate of the assumptions
used in calculating the calculation base and the sharing of relevant assets in areas to be equalized.
Tupi,
Sepia and Atapu
On
April 30, 2020, Petrobras and partner companies in the shared deposits of Tupi, Sépia and Atapu signed the Expenses and
Volumes Equalization Agreements which resulted in Petrobras receiving R$ 2,347 on May 29 of 2020, due to the equalization through
the increase in participation of the company in the three deposits, being, basically, R$ 3,840 recorded in other operating income
and R$ 1,493 recorded in property, plant and equipment.
On
May 1, 2020, as a result of these Agreements, PNBV, a Petrobras subsidiary, signed Contracts for the Acquisition of Shares of
an additional 2.589% interest in Tupi BV (Tupi), for the amount of R$ 509 (US$ 84 million) ), and an additional 47.613% interest
in Iara BV (Atapu) for R$ 4,525 (US $ 805 million), subject to price adjustments. The allocation of the acquisition price of the
participations was based on the relative fair values related to the assets acquired and liabilities assumed, generating
an increase in the amount of R$ 5,034 (US$ 889 million), mainly in property, plant and equipment.
On
September 15, 2020, occurred the mentioned price adjustment resulting in additional payments on the acquisition of interest in
Tupi BV and Iara BV, in the amount of R$ 73 (US$ 13 million), with impact on property, plant and equipment.
Accounting
policy
The
production individualization procedure is initiated when it is identified that a specific deposit extends beyond a block granted
or contracted. In this sense, the operating and non-operating partners in oil and gas properties group their rights in a given
area to form a single unit and, in return, a new percentage of undivided participation in that unit (of the same type as previously
held) is determined.
Events
that occurred prior to the individualization of production may lead to the need for compensation between the parties. When signing
the Production Individualization Agreement (AIP), if Petrobras is to be reimbursed in cash, an asset will not be recognized in
situations where there is no unconditional right to receive cash or another financial asset and it is practically not certain
an entry of economic benefits. In cases where the company is required to make a cash reimbursement, a provision should be recognized,
whenever there is a present obligation as a result of a past event, it is likely that an outflow of resources that incorporate
economic benefits will be necessary to settle the obligation and a reliable estimate of the amount of the obligation can be made.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
31.1.
|
Information
on direct subsidiaries, joint arrangements and associates (Parent Company)
|
|
Main
business
segment
|
%
Petrobras'
ownership
|
%
Petrobras'
voting
rights
|
Shareholders’
equity
(deficit)
|
Net
income
(loss)for
the
year
|
Country
|
Consolidated
Companies
|
|
|
|
|
|
|
Subsidiaries
|
|
|
|
|
|
|
Petrobras
International Braspetro - PIB BV
|
Several
|
100.00
|
100.00
|
240,431
|
26,871
|
Netherlands
|
Petrobras
Transporte S.A. – Transpetro
|
RT&M
|
100.00
|
100.00
|
4,944
|
1,332
|
Brazil
|
Petrobras
Logística de Exploração e Produção S.A. - PB-LOG
|
E&P
|
100.00
|
100.00
|
445
|
1,319
|
Brazil
|
Petrobras
Gás S.A. – Gaspetro
|
Gas
& Power
|
51.00
|
51.00
|
2,258
|
329
|
Brazil
|
Petrobras
Biocombustível S.A.
|
Corporate
and others
|
100.00
|
100.00
|
1,432
|
155
|
Brazil
|
Araucária
Nitrogenados S.A.
|
Gas
& Power
|
100.00
|
100.00
|
168
|
(253)
|
Brazil
|
Termomacaé
Ltda.
|
Gas
& Power
|
100.00
|
100.00
|
446
|
22
|
Brazil
|
Braspetro
Oil Services Company – Brasoil
|
Corporate
and others
|
100.00
|
100.00
|
570
|
12
|
Cayman
Island
|
Breitener
Energética S.A.
|
Gas
& Power
|
93.66
|
93.66
|
720
|
29
|
Brazil
|
Termobahia
S.A.
|
Gas
& Power
|
98.85
|
98.85
|
595
|
5
|
Brazil
|
Baixada
Santista Energia S.A.
|
Gas
& Power
|
100.00
|
100.00
|
351
|
65
|
Brazil
|
Petrobras
Comercializadora de Energia Ltda. - PBEN
|
Gas
& Power
|
100.00
|
100.00
|
62
|
35
|
Brazil
|
Fundo
de Investimento Imobiliário RB Logística - FII
|
E&P
|
99.20
|
99.20
|
15
|
(72)
|
Brazil
|
Petrobras
Negócios Eletrônicos S.A.
|
Corporate
and others
|
72.00
|
72.00
|
19
|
(44)
|
Brazil
|
5283
Participações Ltda.
|
Corporate
and others
|
100.00
|
100.00
|
1
|
(1)
|
Brazil
|
Transportadora
Brasileira Gasoduto Bolívia - Brasil S.A.
|
Gas
& Power
|
51.00
|
51.00
|
419
|
572
|
Brazil
|
Refinaria
de Mucuripe S.A. (i)
|
RT&M
|
100.00
|
100.00
|
−
|
−
|
Brazil
|
Refinaria
de Manaus S.A. (i)
|
RT&M
|
100.00
|
100.00
|
−
|
−
|
Brazil
|
Paraná
Xisto S.A (i)
|
RT&M
|
100.00
|
100.00
|
−
|
−
|
Brazil
|
Refinaria
de Mataripe S.A. (i)
|
RT&M
|
100.00
|
100.00
|
−
|
−
|
Brazil
|
Joint
operations
|
|
|
|
|
|
|
Fábrica
Carioca de Catalizadores S.A. – FCC
|
RT&M
|
50.00
|
50.00
|
207
|
74
|
Brazil
|
Ibiritermo
S.A.
|
Gas
& Power
|
50.00
|
50.00
|
121
|
46
|
Brazil
|
Joint
ventures
|
|
|
|
|
|
|
Logum
Logística S.A.
|
RT&M
|
30.00
|
30.00
|
818
|
(328)
|
Brazil
|
Cia
Energética Manauara S.A.
|
Gas
& Power
|
40.00
|
40.00
|
197
|
17
|
Brazil
|
Petrocoque
S.A. Indústria e Comércio
|
RT&M
|
50.00
|
50.00
|
191
|
109
|
Brazil
|
Refinaria
de Petróleo Riograndense S.A.
|
RT&M
|
33.20
|
33.20
|
17
|
(62)
|
Brazil
|
Brasympe
Energia S.A.
|
Gas
& Power
|
20.00
|
20.00
|
70
|
(1)
|
Brazil
|
Brentech
Energia S.A.
|
Gas
& Power
|
30.00
|
30.00
|
105
|
29
|
Brazil
|
Metanor
S.A. - Metanol do Nordeste
|
RT&M
|
34.54
|
34.54
|
64
|
17
|
Brazil
|
Eólica
Mangue Seco 4 - Geradora e Comercializadora de Energia Elétrica S.A.
|
Gas
& Power
|
49.00
|
49.00
|
23
|
2
|
Brazil
|
Eólica
Mangue Seco 3 - Geradora e Comercializadora de Energia Elétrica S.A.
|
Gas
& Power
|
49.00
|
49.00
|
29
|
2
|
Brazil
|
Eólica
Mangue Seco 1 - Geradora e Comercializadora de Energia Elétrica S.A.
|
Gas
& Power
|
49.00
|
49.00
|
22
|
1
|
Brazil
|
Eólica
Mangue Seco 2 - Geradora e Comercializadora de Energia Elétrica S.A.
|
Gas
& Power
|
51.00
|
51.00
|
21
|
−
|
Brazil
|
Companhia
de Coque Calcinado de Petróleo S.A. - Coquepar
|
RT&M
|
45.00
|
45.00
|
−
|
−
|
Brazil
|
Participações
em Complexos Bioenergéticos S.A. - PCBIOS
|
Corporate
and others
|
50.00
|
50.00
|
−
|
−
|
Brazil
|
GNL
Gemini Comercialização e Logística de Gás LTDA.
|
Gas
& Power
|
40.00
|
40.00
|
155
|
21
|
Brazil
|
Associates
|
|
|
|
|
|
|
Braskem
S.A. (ii)
|
RT&M
|
36.20
|
47.03
|
(4,465)
|
(7,893)
|
Brazil
|
UEG
Araucária Ltda.
|
Gas
& Power
|
18.80
|
18.80
|
134
|
(200)
|
Brazil
|
Petrobras
Distribuidora S.A. - BR (ii)
|
Corporate
and others
|
37.50
|
37.50
|
9,615
|
757
|
Brazil
|
Deten
Química S.A.
|
RT&M
|
27.88
|
27.88
|
570
|
210
|
Brazil
|
Energética
SUAPE II S.A.
|
Gas
& Power
|
20.00
|
20.00
|
425
|
124
|
Brazil
|
Termoelétrica
Potiguar S.A. – TEP
|
Gas
& Power
|
20.00
|
20.00
|
243
|
23
|
Brazil
|
Nitrocolor
Produtos Químicos LTDA.
|
RT&M
|
38.80
|
38.80
|
(1)
|
(2)
|
Brazil
|
Bioenergética
Britarumã S.A.
|
Gas
& Power
|
30.00
|
30.00
|
−
|
−
|
Brazil
|
Nova
Transportadora do Sudeste – NTS
|
Gas
& Power
|
10.00
|
10.00
|
2,144
|
2,528
|
Brazil
|
Transportadora
Sulbrasileira de Gás - TSB
|
Gas
& Power
|
25.00
|
25.00
|
21
|
4
|
Brazil
|
|
|
|
|
|
|
|
(i)
Companies in the constitution phase, with registered public deed and financial contribution made in a constitution account
in the amount of approximately R$ 304 thousand for each company.
(ii)
Information related to September 30, 2020, the latest available to the market.
|
In
2020, the Company had the following corporate restructuring:
i)
Transportadora Associada de Gás S.A.-TAG, Liquigás Distribuidora S.A., Fundo de Investimento em Participações
de Sondas (FIP Sondas) and Sete Brasil Participações S.A. were divested;
ii)
Termomacaé Comercializadora de Energia S.A. (TMC) was merged by Petrobras Comercializadora de Energia (PBEN);
iii)
Petrobras Negócios Eletrônicos S.A. (E-Petro) was merged into Petrobras, with its consequent extinction, without
increasing Petrobras' share capital. In this way, Procurement Negócios Eletrônicos started to be invested directly
by Petrobras;
iv)
Creation of subsidiaries Refinaria de Mucuripe S.A., Refinaria de Manaus S.A., Paraná Xisto S.A. and Refinaria de Mataripe
S.A. (see note 32.3).
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
The
main investees of Petrobras International Braspetro BV - PIB BV are:
|
·
|
Petrobras
Global Trading BV - PGT (100%, headquartered in the Netherlands), which basically operates
in the sale of oil, oil products, biofuels and liquefied natural gas (LNG), as well as
in proceeds of financing and passing on loans as part of its financial operations within
the scope of Petrobras and its subsidiaries;
|
|
·
|
Petrobras
Global Finance B.V. - PGF (100%, based in the Netherlands), whose main objective is to
raise funds in the capital market by issuing bonds and transferring loans to Petrobras
companies and their subsidiaries;
|
|
·
|
Petrobras
America Inc. - PAI (100%, based in the United States) with E&P activities (MP Gulf
of Mexico, LLC);
|
|
·
|
Petrobras
Netherlands BV - PNBV (100%, based in the Netherlands) which has joint operations: Tupi
BV (65%), Guará BV (45%), Agri Development BV (90%), Libra BV (40%), Papa Terra
BV (62.5%), Roncador BV (75%), Iara BV (42.5%) and Lapa BV (10%), all established for
the purpose of building and renting equipment and platforms for operations in the E&P
segment in Brazil and based in the Netherlands. In December 2020, PNBV transferred to
companies of Sete Brasil Group, for the symbolic value of 7 euros, the 15% equity interest
it held in each of the Dutch special purpose companies controlled by the Sete Brasil
Group itself: Arpoador Drilling BV, Marambaia Drilling BV, Grumari Drilling BV, Copacabana
Drilling BV, Leme Drilling BV, Leblon Drilling BV and Ipanema Drilling BV With the sale
carried out, Petrobras no longer holds a direct or indirect interest in the companies
of the Sete Brasil Group; and
|
|
·
|
On
January 14, 2020, PIB BV concluded the full sale of its 50% equity interest in Petrobras
Oil & Gas B.V. - PO & GBV with Petrovida Holding B.V - PETROVIDA.
|
|
31.2.
|
Investment
change (Parent Company)
|
|
Balance
at 12.31.2019
|
Investments
|
Transfers
to held for sale
|
Restructuring,
capital decrease and others
|
Results
in equity-accounted investments
|
Cumulative
translation adjustments (CTA)
|
Other
comprehensive income
|
Dividends
|
Balance
at 12.31.2020
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
PIB
BV
|
154,370
|
−
|
−
|
(175)
|
17,382
|
47,220
|
−
|
−
|
218,797
|
Transpetro
|
3,521
|
−
|
−
|
(557)
|
1,216
|
366
|
678
|
(439)
|
4,785
|
PB-LOG
|
2,450
|
−
|
−
|
(2,622)
|
1,538
|
−
|
−
|
(1,366)
|
−
|
PBIO
|
1,265
|
−
|
−
|
−
|
155
|
−
|
12
|
−
|
1,432
|
Gaspetro
|
1,103
|
−
|
−
|
−
|
168
|
−
|
−
|
(122)
|
1,149
|
Breitener
|
665
|
−
|
−
|
−
|
27
|
−
|
−
|
(17)
|
675
|
Other
subsidiaries
|
1,457
|
670
|
−
|
67
|
(412)
|
(27)
|
612
|
(428)
|
1,939
|
Joint
operations
|
186
|
−
|
−
|
−
|
60
|
−
|
−
|
(82)
|
164
|
Joint
ventures
|
337
|
31
|
(98)
|
(23)
|
66
|
−
|
−
|
(76)
|
237
|
Associates
|
|
|
|
|
|
|
|
|
|
TAG
|
1,142
|
−
|
−
|
(1,084)
|
96
|
−
|
(43)
|
(111)
|
−
|
Nova
Transportadora do Sudeste - NTS
|
963
|
−
|
−
|
(65)
|
253
|
−
|
−
|
(238)
|
913
|
Other
associates (*)
|
15,188
|
−
|
−
|
−
|
(3,096)
|
1,105
|
(970)
|
(462)
|
11,765
|
Total
|
182,647
|
701
|
(98)
|
(4,459)
|
17,453
|
48,664
|
289
|
(3,341)
|
241,856
|
Other
investments
|
19
|
−
|
|
−
|
−
|
−
|
−
|
−
|
19
|
Total
|
182,666
|
701
|
(98)
|
(4,459)
|
17,453
|
48,664
|
289
|
(3,341)
|
241,875
|
Results
of companies classified as held for sale
|
|
|
|
|
210
|
|
17
|
|
|
|
|
|
|
|
17,663
|
|
306
|
|
|
(*)
Includes Petrobras Distribuidora and Braskem S / A.
|
At
the Extraordinary General Meeting of Shareholders of Petrobras Logística de Exploração e Produção
SA (PB-LOG), held on April 30, 2020, Petrobras, as sole shareholder, approved the capital reduction of PB-LOG, in the amount of
R$ 3,162, in view of the subsidiary's excess capital. The capital reduction was settled financially on August 21, 2020.
On
December 29, 2020, Petrobras, as the sole shareholder, approved the capital reduction of its wholly-owned subsidiary Petrobras
Transporte S.A. (Transpetro), in the amount of R$ 557, at the Extraordinary Shareholders' Meeting of Transpetro. The capital reduction
was carried out at book value, without changing the number of shares, upon delivery to Petrobras, as a return of its participation
in the capital stock, of assets and rights related to the investments made by Transpetro in the leased assets of Petrobras, and
that are part of the scope of the divestment of the company's refineries and their respective logistical assets and meets the
obligations established in the Termination Commitment Term (TCC) signed on June 11, 2019 with the Administrative Council for Economic
Defense (CADE).
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
31.3.
|
Investment
change (Consolidated)
|
|
Balance
at 12.31.2019
|
Investments
|
Transfers
to held for sale
|
Restructuring,
capital decrease and others
|
Results
in equity-accounted investments
|
Cumulative
translation adjustments (CTA)
|
Other
comprehensive income
|
Dividends
|
Balance
at 12.31.2020
|
Joint
Ventures
|
|
|
|
|
|
|
|
|
|
MP
Gulf of Mexico, LLC /PIB BV
|
2,327
|
−
|
−
|
15
|
(894)
|
612
|
−
|
(157)
|
1,903
|
State-controlled
natural gas distributors/Gaspetro
|
1,533
|
1
|
−
|
(1)
|
300
|
−
|
−
|
(282)
|
1,551
|
Compañia
Mega S.A. – MEGA/PIB BV
|
319
|
−
|
−
|
−
|
55
|
90
|
−
|
(36)
|
428
|
Other
companies
|
634
|
31
|
(353)
|
(22)
|
108
|
32
|
−
|
(80)
|
350
|
Associates
(*)
|
|
|
|
|
|
|
|
|
|
NTS
|
963
|
−
|
−
|
(65)
|
253
|
−
|
−
|
(238)
|
913
|
TAG
|
1,142
|
−
|
−
|
(1,084)
|
96
|
−
|
(43)
|
(111)
|
−
|
Other
companies
|
15,228
|
42
|
−
|
82
|
(3,190)
|
1,116
|
(970)
|
(463)
|
11,845
|
Other
investments
|
20
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
20
|
Total
|
22,166
|
74
|
(353)
|
(1,075)
|
(3,272)
|
1,850
|
(1,013)
|
(1,367)
|
17,010
|
(*)Includes
BR and Braskem, highlighting the result with hedge for future exports and sales and provisions for closing Braskem's rock
salt wells.
|
|
31.4.
|
Investments
in non-consolidated listed companies
|
|
Thousand-share
lot
|
|
Quoted
stock exchange prices (R$ per share)
|
Market
value
|
Company
|
12.31.2020
|
12.31.2019
|
Type
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
Associate
|
|
|
|
|
|
|
|
BR
|
436,875
|
436,875
|
ON
|
22.13
|
30.07
|
9,668
|
13,137
|
|
|
|
|
|
|
9,668
|
13,137
|
Associate
|
|
|
|
|
|
|
|
Braskem
|
212,427
|
212,427
|
ON
|
25.22
|
31.54
|
5,357
|
6,700
|
Braskem
|
75,762
|
75,762
|
PNA
|
23.57
|
29.85
|
1,786
|
2,261
|
|
|
|
|
|
|
7,143
|
8,961
|
The
market value for these shares does not necessarily reflect the realization value on the sale of a representative lot of shares.
Braskem
S.A. and BR S.A. - Investment in affiliate with shares traded on stock exchanges
The
main estimates used in the cash flow projections to determine the value in use of Braskem and BR are being presented in note 27.3.
|
31.5.
|
Non-controlling
interest
|
The
total non-controlling interest in the company's shareholders' equity is R$ 2,740 (R$ 3,596 in 2019), mainly: R$ 1,107 from Gaspetro
(R$ 1,062 in 2019), R$ 335 from Structured Entities (R$ 817 in 2019), R$ 1,000 from FIDC (R$ 1,384 in 2019) and R$ 204 from TBG
(R$ 280 in 2019).
The
following is the summary financial information:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
Gaspetro
|
Structured
Entities
|
FIDC
|
TBG
|
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
Current
assets
|
423
|
368
|
4,664
|
3,197
|
20,528
|
66,009
|
1,187
|
620
|
Long-term
receivables
|
260
|
246
|
2,388
|
2,363
|
−
|
−
|
1
|
2
|
Investments
|
1,551
|
1,533
|
−
|
−
|
−
|
−
|
−
|
−
|
Property,
plant and equipment
|
2
|
5
|
−
|
−
|
−
|
−
|
1,626
|
1,735
|
Other
non-current assets
|
270
|
292
|
−
|
−
|
−
|
−
|
10
|
7
|
|
2,507
|
2,444
|
7,052
|
5,560
|
20,528
|
66,009
|
2,825
|
2,364
|
Current
liabilities
|
129
|
162
|
5,418
|
31
|
3
|
24
|
1,070
|
421
|
Non-current
liabilities
|
120
|
114
|
685
|
4,450
|
−
|
−
|
1,335
|
1,370
|
Shareholders'
equity
|
2,258
|
2,167
|
950
|
1,078
|
20,525
|
65,985
|
419
|
572
|
|
2,507
|
2,444
|
7,052
|
5,560
|
20,528
|
66,009
|
2,825
|
2,364
|
Sales
revenues
|
426
|
538
|
−
|
−
|
−
|
−
|
1,600
|
1,680
|
Net
income
|
330
|
350
|
(1,007)
|
162
|
2,145
|
3,592
|
572
|
709
|
Cash
and cash equivalents generated (used) in the year
|
(21)
|
28
|
1,170
|
63
|
9
|
3,102
|
128
|
11
|
|
Gaspetro,
a Petrobras subsidiary (51%), is a company with a stake in several gas distributors in Brazil, which perform, through concession,
piped natural gas distribution services.
Structured
entities include Charter Development LLC - CDC, with the objective of building, acquiring and chartering FPSOs, and the Companhia
de Desenvolvimento e Modernização de Plantas Industriais - CDMPI, with activities of
delayed coking and hydrotreating of coke naphtha at the Henrique Lage Refinery - REVAP. On January 5, 2021, Petrobras acquired
100% of the shares related to CDMPI for the amount of R$ 50 thousand.
The
Non-Standardized Credit Rights Investment Fund (“FIDC-NP”) is an investment fund mainly intended for the acquisition
of “performed” and / or “non-performed” credit rights for operations carried out by Petrobras companies
and their subsidiaries, and aims at optimizing the financial management of cash.
TBG
is a company that operates in the transportation of natural gas, through the Bolivia-Brazil gas pipeline and a subsidiary of Petrobras,
which has a 51% stake in this company.
|
31.6.
|
Summarized
information on joint ventures and associates
|
The
company invests in jointly controlled and affiliated projects in the country and abroad, whose activities are related to petrochemical
companies, distribution, transportation, trade, processing and the industrialization of oil products and other fuels, gas distributors,
biofuels, thermoelectric, refineries and others. The summary accounting information is as follows:
|
|
|
|
2020
|
|
|
|
2019
|
|
Joint
operations
|
Associates
|
Joint
operations
|
Associates
|
|
Brazil
|
MP
Gulf of Mexico, LLC
|
Other
companies abroad
|
Brazil
|
Brazil
|
MP
Gulf of Mexico, LLC
|
Other
companies abroad
|
Brazil
|
Current
assets
|
4,129
|
1,440
|
713
|
51,735
|
4,623
|
1,501
|
666
|
37,186
|
Long-term
receivables
|
2,002
|
1,344
|
19
|
20,559
|
1,958
|
−
|
21
|
19,668
|
Property,
plant and equipment
|
2,559
|
12,370
|
327
|
51,516
|
2,582
|
12,622
|
194
|
81,461
|
Other
non-current assets
|
2,506
|
10
|
−
|
3,957
|
2,559
|
1
|
−
|
6,365
|
|
11,196
|
15,164
|
1,059
|
127,767
|
11,722
|
14,124
|
881
|
144,680
|
Current
liabilities
|
2,976
|
1,185
|
304
|
37,793
|
3,184
|
956
|
300
|
27,211
|
Non-current
liabilities
|
3,436
|
4,100
|
88
|
76,756
|
3,255
|
1,502
|
75
|
116,397
|
Shareholders'
equity
|
4,610
|
7,976
|
422
|
14,773
|
5,120
|
9,339
|
320
|
1,027
|
Non-controlling
interests
|
174
|
1,903
|
245
|
(1,555)
|
163
|
2,327
|
186
|
45
|
|
11,196
|
15,164
|
1,059
|
127,767
|
11,722
|
14,124
|
881
|
144,680
|
Sales
revenues
|
10,602
|
3,856
|
−
|
146,556
|
16,070
|
5,127
|
530
|
158,666
|
Net
income
|
477
|
(3,132)
|
45
|
837
|
972
|
1,670
|
68
|
9,533
|
Participation
- %
|
23.5
to 83%
|
20%
|
34
to 45%
|
4.59
to 40%
|
20
to 51.5%
|
20%
|
34
to 45%
|
4.59
to 40%
|
Accounting
policy
Consolidation
basis
The
consolidated financial statements cover information from Petrobras and its subsidiaries, jointly controlled operations and consolidated
structured entities.
Control
is obtained when Petrobras has: i) power over the investee; ii) exposure to, or rights to, variable returns arising from your
involvement with the investee; and iii) the ability to use its power over the investee to affect the value of its returns.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
The
subsidiary and controlled companies are consolidated from the date on which control is obtained until the date on which this control
ceases to exist, using accounting practices consistent with those adopted by the company.
Structured
entities are those designed so that voting rights, or similar, are not the dominant factor in determining who controls the entity.
As of December 31, 2020, Petrobras controls and consolidates 3 structured entities: CDC (USA, E&P); CDMPI (Brazil, Refining,
Transportation and Commercialization (RTC)) and Non-standard Credit Rights Investment Fund of Petrobras and its subsidiaries (Brazil,
Corporate).
Transactions
and balances between group entities, including unrealized income arising from these transactions, are eliminated in the consolidation
process.
Investments
in other companies
Affiliate
is the entity over which the company has significant influence, defined as the power to participate in the making of decisions
about an investee's financial and operating policies, but without the individual or joint control of those policies. A joint business
is one in which two or more parties have joint control established by contract, which can be classified as a joint operation or
a jointly controlled venture, depending on the rights and obligations of the parties.
While
in a joint operation, the integrating parties have rights over the assets and obligations over the liabilities related to the
business, in a jointly controlled venture, the parties have rights over the net assets of the business. In the exploration and
production segment, some activities are conducted by joint operations.
In
the parent company financial statements, investments in associates, subsidiaries and jointly controlled entities are valued using
the equity accounting method (MEP) from the date they become their associate, jointly controlled and controlled enterprise. Only
joint operations constituted by a vehicle entity with its own legal personality are evaluated by MEP. For other joint operations,
the company recognizes its assets, liabilities and the respective income and expenses in these operations.
In
the consolidated financial statements, investments in associates and joint ventures are recognized by the MEP considering the
accounting practices of Petrobras. The distributions received from these investees reduce the carrying amount of the investment.
Business
combination and Goodwill
Business
combination is an operation or other event through which an acquirer obtains control of one or more businesses, regardless of
the legal form of the operation. The acquisition method is applied to transactions in which control is obtained. Business combinations
of entities under common control are accounted for at cost. Under the acquisition method, identifiable assets acquired and liabilities
assumed are measured at fair value, with limited exceptions.
Goodwill
for expected future profitability is measured at the amount whose sum: (i) of the amount transferred in exchange for the acquired
company's control; (ii) the amount of any non-controlling interests in the acquiree; (iii) and in the case of a business combination
carried out in stages, of the fair value of the acquirer's interest in the acquiree immediately before the combination; exceeds
the net value of identifiable assets acquired and liabilities assumed. When this sum is less than the net value of the identifiable
assets acquired and the liabilities assumed, a gain from an advantageous purchase is recognized in the statement of income.
Changes
in interests in subsidiaries that do not result in a change of control are not considered a business combination and, therefore,
are recognized directly in shareholders’ equity, as capital transactions, by the difference between the price paid / received,
including transaction costs directly related and the book value of the interest acquired / sold.
|
32.
|
Disposal
of assets and other changes in organizational structure
|
The
company has a dynamic portfolio of partnerships and divestments, in which it evaluates opportunities to dispose of non-strategic
assets in its various areas of activity, whose development of transactions also depends on conditions that are beyond the company's
control.
The
divestment and strategic partnership projects follow the procedures in line with the guidelines of Tribunal de Contas da União
(TCU) and the current legislation.
The
main classes of assets and liabilities classified as held for sale are shown below:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
Consolidated
|
|
|
|
|
|
|
|
12.31.2020
|
12.31.2019
|
|
E&P
|
RT&M
|
Gas
and Power
|
Distribution
|
Biofuel
|
Corporate
|
Total
|
Total
|
Assets
classified as held for sale
|
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents
|
6
|
−
|
−
|
68
|
−
|
−
|
74
|
18
|
Trade
receivables
|
−
|
−
|
−
|
126
|
−
|
−
|
126
|
277
|
Inventories
|
−
|
−
|
−
|
23
|
−
|
−
|
23
|
52
|
Investments
|
1
|
−
|
98
|
1
|
255
|
−
|
355
|
1,429
|
Property,
plant and equipment
|
3,114
|
97
|
−
|
107
|
−
|
−
|
3,318
|
8,248
|
Others
|
−
|
−
|
−
|
185
|
−
|
−
|
185
|
309
|
Total
|
3,121
|
97
|
98
|
510
|
255
|
−
|
4,081
|
10,333
|
Liabilities
on assets classified as held for sale
|
|
|
|
|
|
|
|
|
Trade
Payables
|
3
|
−
|
−
|
107
|
−
|
−
|
110
|
108
|
Finance
debt
|
−
|
−
|
−
|
26
|
−
|
44
|
70
|
572
|
Provision
for decommissioning costs
|
3,326
|
−
|
−
|
−
|
−
|
−
|
3,326
|
11,934
|
Others
|
−
|
−
|
−
|
53
|
−
|
−
|
53
|
470
|
Total
|
3,329
|
−
|
−
|
186
|
−
|
44
|
3,559
|
13,084
|
|
32.1.
|
Transactions
pending closing at December 31, 2020
|
The
assets and liabilities corresponding to the operations described below, operations not completed, are classified as held for sale
on December 31, 2020.
Transaction
|
Acquirer
|
Signature
date
|
Transaction
amount (*)
|
Further
information
|
Exercise
of the put option to transfer the remaining interest (10%) in Lapa field to Total, in block BM-S-9, as provided in the contract
signed in January 2018, when Total acquired a 35% interest on this field, becoming the operator of the field.
|
Total
|
December
2018
|
US$
50 million
|
a
|
Sale
of 30% of the Frade field concession. The transaction also includes the sale of the entire stake held by the subsidiary Petrobras
Frade Inversiones S.A. (PFISA), in the company Frade BV, which owns the offshore assets used in the production development
of this field.
|
PetroRio
|
November
2019
|
US$
100 million
|
b
|
Sale
of the Company’s entire interest in the onshore fields Fazenda Belém and Icapuí, called Fazenda Belém
group, located in the Potiguar basin, in the state of Ceará.
|
SPE
Fazenda Belém S.A., subsidiary of 3R Petroleum e Participações S.A.
|
August
2019
|
US$
35.2 million
|
c
|
Sale
of the Company’s entire interest in eight onshore fields, called Rio Ventura group, located in the in the state of Bahia.
|
SPE
Rio Ventura S.A., subsidiary of 3R Petroleum e Participações S.A
|
August
2020
|
US$
51 million
|
d
|
Sale
of the Company’s entire interest in 27 onshore fields, called Cricaré group, located in the in the state of Espírito
Santo.
|
Karavan
SPE Cricaré S.A. (51%) and Seacrest Capital Group Limited (49% and equity provider)
|
August
2020
|
US$
37 million
|
e
|
Petrobras
Uruguay Sociedad Anónima de Inversiones (PUSAI) signed a contract for the sale of its entire stake in Petrobras Uruguay
Distribuición S.A. (PUDSA).
|
DISA
Corporación Petrolífera S.A.
|
August
2020
|
US$
61.70 million
|
f
|
Sale
of the Company’s entire interest in 14 onshore fields, called Recôncavo group of fields, located in the state
of Bahia.
|
Ouro
Preto Energia Onshore S.A, subsidiary of Petroleum Óleo e Gás S.A..
|
December
2020
|
US$
250 million
|
g
|
Sale
of the Company’s entire interest in 12 onshore fields, called Remanso group of fields, located in the state of Bahia.
|
Petrorecôncavo
S.A.
|
December
2020
|
US$
30 million
|
h
|
Petrobras
Biocombustível S.A. (PBio) signed a contract for the sale of all of its shares issued by BSBios Indústria e
Comércio de Biodiesel Sul Brasil S.A. (BSBios) (50% of the share capital).
|
RP
Participações em Biocombustíveis S.A
|
December
2020
|
320
|
i
|
Sale
of the totality of its 49% interest in the company Eólica Mangue Seco 1 - Geradora e Comercializadora de Energia Eletrica
SA. (“Eólica Mangue Seco 1”).
|
V2I
Transmissão de Energia Elétrica S.A.
|
December
2020 (**)
|
42.5
|
j
|
|
|
|
|
|
Joint
sale with Wobben Windpower Indústria e Comércio Ltda (Wobben) of all of its stakes (51% Wobben and 49% Petrobras)
in the companies Eólica Mangue Seco 3 - Geradora e Comercializadora de Energia Elétrica SA (“Eólica
Mangue Seco 3”) and Eólica Mangue Seco 4 - Geradora e Comercializadora de Energia Elétrica SA (“Eólica
Mangue Seco 4”).
|
V2I
Transmissão de Energia Elétrica S.A.
|
December
2020 (**)
|
89.9
|
K
|
(*)
Only amounts considered at the signing of the transaction.
|
|
|
|
|
|
(**)
Date of approval by the Board of Directors.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
a)
Sale of Lapa field – Strategic alliance with Total
The
transaction is subject to price adjustments and to the fulfillment of certain conditions precedent.
b)
Sale of Frade field
Payments
are composed of: (i) US$ 7.5 million was paid at the contract signing; (ii) US$ 92.5 million to be paid at the closing
of the transaction, subject to price adjustments. In addition, there is a contingent payment amounting to US$ 20 million
subject to a new discovery in the field.
c)
Sale of onshore fields in Ceará
Payments
are composed of: (i) US$ 8.8 million was paid at the contract signing; (ii) US$ 16.4 million to be paid at the transaction
closing; and (iii) US$ 10 million to be paid in twelve months after the transaction closing.
Such
amounts do not consider the adjustments due and are subject to the fulfillment of precedent conditions, such as approval by the
National Agency of Petroleum, Natural Gas and Biofuels (ANP).
d)
Sale of onshore fields in Bahia – Ventura group of fields
Payments
are composed of: (i) US$ 3.8 million was paid at the contract signing; (ii) US$ 31.2 million to be paid at the transaction
closing; (iii) US$ 16 million to be paid in thirty months after the transaction closing; and (iv) US $ 43.2 million
in contingent payments provided for in the contract that depend on the achievement of oil barrel prices negotiated between the
parties.
The
amounts do not consider the adjustments due and the closing of the transaction is subject to the fulfillment of precedent conditions,
such as approval by the ANP.
e)
Sale of onshore fields in Espírito Santo
Receipt
term: (i) US$ 11 million received on the date of signing the contract; (ii) US$ 26 million, to be paid at the closing of the transaction
and (iii) US$ 118 million classified as contingent assets, US$ 88 million conditioned and linked to the Brent value and US$ 30
million conditioned to approval by the ANP the extension of the terms of the concession contracts for nine fields considered principal
by the buyer (São Mateus, Rio Itaúnas, Fazenda Cedro, Lagoa Suruaca, Fazenda São Jorge, Rio São Mateus,
Campo Grande, Mariricu and Mariricu Norte).
The
amounts do not consider the adjustments due and the closing of the transaction is subject to the fulfillment of precedent conditions,
such as ANP approval and that the buyer has obtained the Environmental License from the Instituto Estadual de Meio Ambiente e
Recursos Hídricos (IEMA).
f)
Sale of Petrobras Uruguay Distribución S.A. (PUDSA)
Payments
are composed of (a) US$ 6.17 million were paid at the contract signing; and (b) US$ 55.53 million to be paid at the
transaction closing. The final amount of the transaction is subject to adjustments until the closing date of the transaction.
This
sale is subject to the fulfillment of conditions precedent, such as approval by the Uruguayan Competition Defense Authority.
g)
Sale of onshore fields in Bahia – Recôncavo group of fields
Payments
are composed of: (i) US$ 10 million was paid at the contract signing; and (ii) US$ 240 million to be paid at the transaction
closing.
The
amounts do not consider the adjustments due and the closing of the transaction is subject to the fulfillment of precedent conditions,
such as approval by the ANP.
h)
Sale of onshore fields in Bahia – Remanso group of fields
Payments
are composed of: (i) US$ 4 million to be paid on December 23, 2021; (ii) US$ 21 million to be paid at the transaction
closing; and (iii) 5 million to be paid one year after the transaction closing.
Like
other field sales operations, it does not consider adjustments due and the closing of the transaction is subject to the fulfillment
of precedent conditions.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
i)
Sale of BSBios
The
sale amount, including inflation indexation, will be deposited in escrow accounts, due to the PBio's interest in BSBios. This
amount is subject to usual adjustments for transactions of this nature.
PBio
will be able to draw down R$ 255 from the escrow account at the transaction closing, and R$ 67 will draw down for the indemnification
of eventual contingencies and released according to the terms and conditions set forth in the contract.
j)
Mangue Seco Wind Farm 1
The
amount will be received in a single installment at the closing of the transaction and is subject to the adjustments provided for
in the contract.
k)
Mangue Seco Wind Farms 3 and 4
Deadline
for receipt: i) R$ 22.5 upon signing the contract; (ii) R$ 67.4 at the closing of the transaction, subject to the adjustments
provided for in the contracts.
|
32.2.
|
Closed
transactions
|
Transaction
|
Acquirer
|
Signature
date (S)
Closing
date (C)
|
Sale
amount
|
Contractual
amount(*) (**)
|
Gain
(loss) (***)
|
Further
information
|
Full
sale of the equity interest held by Petrobras (50%) in Petrobras Oil & Gas B.V. ("PO&G BV"), a joint venture
in the Netherlands, with assets located in Nigeria.
|
Petrovida
Holding B.V
|
S
October/2018
C
January/2020
|
6,026
|
US$
1,454
Million
|
7
|
a
|
|
|
|
|
|
|
|
Sale
of 100% interest in the Pampo and Enchova Poles (Enchova, Enchova Oeste, Marimbá, Piraúna, Bicudo, Bonito, Pampo,
Trilha, Linguado and Badejo fields, located in shallow waters in the Campos Basin.
|
Trident
Energy do Brasil LTDA, subsidiary of Trident Energy L.P
|
S
July/2019
C
July/2020
|
2,153
|
US$
418,6
Million
|
1,927
|
b
|
|
|
|
|
|
|
|
Sale
of the totality of participation in a set of production fields, land and sea, called Polo Macau (Aratum, Macau, Serra, Salina
Cristal, Lagoa Aroeira, Porto Carão and Sanhaçu), in the Potiguar Basin, located in the state of Rio Grande
do Norte
|
SPE
3R Petroleum S.A., a total subsidiary of 3R Petroleum e Participações S.A.
|
S
August/2019
C
May/2020
|
862
|
862
|
420
|
c
|
|
|
|
|
|
|
|
Execution
of a share purchase and sale agreement referring to Petrobras' remaining 10% stake in Transportadora Associada de Gás
S.A. (TAG).
|
Group
formed by ENGIE and the Canadian fund Caisse de Dépôt et Placement du Québec (CDPQ).
|
S
July/2020
C
July/2020
|
1,006
|
1,006
|
147
|
d
|
|
|
|
|
|
|
|
Sale
of 100% interest in the Baúna field (BM-S-40 concession area), located in shallow waters in the Santos Basin.
|
Karoon
Petróleo & Gás Ltda (Karoon), subsidiary of Karoon Energy Ltd.
|
S
July/2019
C
November/2020
|
1,254
|
US$
240
Million
|
1,481
|
e
|
|
|
|
|
|
|
|
Full
sale of equity interest in Liquigás Distribuidora S.A
|
Copagaz
and Nacional Gás Butano
|
S
November/2019
C
December/2020
|
4,035
|
4,035
|
2,731
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,336
|
|
6,713
|
|
(*)
Considering amounts agreed upon signing the transaction and converted into reais, when traded in another currency.
|
(**)
The value of “Receipts for the sale of assets (Divestments) in the Cash Flow Statement” is mainly composed of
amounts from the Divestment Program: partial receipt of operations for this year, installments for operations from previous
years and advances referring to unfinished operations.
|
(***)
Recognized in "Income from disposals, write-off of assets and result from remeasurement of equity interests" - Note
11 - Other net operating income (expenses).
|
These
conclusions came after the fulfillment of possible precedent conditions.
a)
Sale of Petrobras’s interest in Petrobras Oil & Gas B.V. (PO&GBV)
The
transaction was concluded and involved a total amount of US$ 1.530 billion, adjusted to US$ 1.454 billion, reflecting the incidence
of interest on the acquisition price and the deduction of the portion that fell to Petrobras from the payment of fees for approval
of the transaction by Nigerian Government. Of the total of US$ 1.454 billion, Petrobras received US$ 1.030 billion in the form
of dividends paid by PO & GBV since the base date of the transaction (January 1, 2018). On the closing date, it received US$
276 million, and US$ 25 million in June 2020, leaving US$ 123 million (face value) that will be received after the completion
of the process of redetermination of the Abgami field and in up to 5 years. from the closing of the transaction.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
b)
Sale of Pampo and Enchova groups of fields
At
the transaction closing, the Company received US$ 365.4 million after the fulfillment of all the conditions precedent and
the inclusion of additional conditions, providing for the payment of amounts of up to US$ 650 million classified as contingent
assets, to be recognized when the agreed conditions are met.
The
amount received at the transaction closing adds up to the US$ 53.2 million paid to Petrobras upon the contract signing, totaling
US$ 418.6 million.
c)
Sale of fields in Macau group of fields
Petrobras
held a 100% interest in all concessions, with the exception of Sanhaçu, in which it was an operator with a 50% interest,
with the remaining percentage of Petrogal.
The
transaction amount of R$ 862 includes the adjustments provided for in the contract and the amount received on August 9, 2019,
upon signing the contract, referring to the first installment.
d)
Sale of remaining interest in Transportadora Associada de Gás (TAG)
The
transaction was concluded for the amount of R$ 1,006, fully paid on the date of the signing of the contract, after the deduction
of R$ 110 of dividends paid to Petrobras in June 2020 and other price adjustments.
In
addition, as a result of this operation, the loss of R$ 225 with accumulated cash flow hedge since the sale of TAG's control in
June 2019 was reclassified to income, as other net expenses, recognized as other comprehensive income in the Shareholders’
Equity of Petrobras in a way that reflects the values registered with TAG.
e)
Sale of Baúna field
Due
to the economic effects caused by the COVID-19 pandemic and the consequent difficulty in meeting the conditions precedent originally
set, the parties defined adjustments to the terms of the contract and the payment of the transaction value.
After
the fulfillment of the precedent conditions, the transaction was concluded with the payment of US$ 150 million. The amount received
at closing adds up to the amount of US$ 50 million paid on the date of signature. The remaining portion, estimated at approximately
US$ 40 million, will be paid by Karoon within 18 months from the date of completion of the transaction, considering price adjustments,
since the base date of the transaction is January 1, 2019 and, therefore, the amount was adjusted according to the result of the
cash flow incorporated by Petrobras up to the closing date.
Additionally,
a contingent portion of the price was agreed by the parties, to be received by Petrobras by 2026, in the amount of US$ 285 million,
depending on the achievement of average oil barrel prices negotiated between the parties.
a)
Contingent portion of the sale of interest in exploratory block BM-S-8
On
July 28, 2016, Petrobras sold its total interest (equivalent to 66%) in block BM-S-8 where the Bacalhau field (former Carcará
area) is located, in the pre-salt basin Santos, to Equinor, in the amount of US $ 2.5 billion.
The
first installment, of US$ 1.25 billion, corresponding to 50% of the transaction value, was received on November 22, 2016. The
second installment, in the amount of US$ 300 million, was received on March 21, 2018 .
The
third installment, in the amount of US$ 950 million, remains contingent, pending approval of the Production Individualization
Agreement (AIP) by ANP, whose submission to ANP by Equinor occurred on January 29, 2021, or 12 (twelve) months after the submission
of the AIP to ANP, whichever comes first.
b)
Merger of Petrobras Negócios Eletrônicos S.A. (E-Petro)
On
March 4, 2020, the Petrobras Board of Directors approved the merger of E-Petro, with its extinction, without increasing Petrobras'
share capital.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
c)
Constitution of subsidiaries
In
November and December 2020, the subsidiaries Refinaria de Mucuripe S.A, Refinaria de Manaus S.A., Paraná Xisto S.A. and
Refinaria de Mataripe S.A. were set up. In addition, another four subsidiaries are in the process of being incorporated. This
is a preparatory step for refining divestment processes and their respective logistical assets and observes the obligations established
in the Termination Commitment Term signed on June 11, 2019 with the Conselho Administrativo de Defesa Econômica (CADE).
32.4.
Cash flows from sales of interest with loss of control
The
sales of equity interest that resulted in loss of control and the cash flows arising from these transactions are shown below:
|
Amount received
|
Cash
and cash equivalents of controlled entities with loss of control
|
Net
cash flow
|
2020
|
|
Petrobras
Oil & Gas B.V.(PO&GBV) (*)
|
1,144
|
−
|
1,144
|
Liquigas
|
4,035
|
(51)
|
3,984
|
Total
|
5,179
|
(51)
|
5,128
|
2019
|
|
Petrobras
Paraguay
|
1,474
|
(303)
|
1,171
|
Total
|
1,474
|
(303)
|
1,171
|
(*)
Amount of US$ 276 received on the closing date of the transaction.
|
Accounting
Policy
They
are classified as held for sale when their book value is recoverable, mainly through the sale.
For
the company, the condition for classification as held for sale is only achieved when the sale is approved by Management, the asset
is available for immediate sale in its current conditions and there is an expectation that the sale will occur within 12 months
after the classification as available for sale. However, in cases where the non-compliance with the term of up to 12 months is
proven to be caused by events or circumstances beyond the company's control and if there is still sufficient evidence of the disposal,
the classification may be maintained.
Assets
held for sale and associated liabilities are measured at the lower of the carrying amount and the net fair value of selling expenses
and are presented separately in the balance sheet.
When
a transaction reflects the sale of a component of the company that represents an important separate line of business, it is considered
a discontinued operation, with its results and cash flows presented in a segregated manner based on the classification of the
respective assets and liabilities as held for sale.
|
33.
|
Assets
by operating segment
|
The
segmented information reflects the evaluation structure of senior management in relation to performance and the allocation of
resources to the business.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Consolidated
assets by operating segment - 12.31.2020
|
|
|
E&P
|
Refining,
Transportation & Marketing
|
Gas
&
Power
|
Corporate
and other business
|
Eliminations
|
Total
|
Current
assets
|
27,713
|
42,455
|
10,264
|
79,700
|
(17,809)
|
142,323
|
Non-current
assets
|
597,341
|
124,092
|
43,241
|
80,413
|
9
|
845,096
|
Long-term
receivables
|
24,657
|
13,196
|
5,070
|
62,042
|
9
|
104,974
|
Investments
|
2,026
|
2,081
|
3,152
|
9,751
|
−
|
17,010
|
Property,
plant and equipment
|
494,838
|
108,308
|
34,373
|
7,915
|
−
|
645,434
|
Operating
assets
|
441,285
|
95,122
|
22,345
|
6,427
|
−
|
565,179
|
Under
construction
|
53,553
|
13,186
|
12,028
|
1,488
|
−
|
80,255
|
Intangible
assets
|
75,820
|
507
|
646
|
705
|
−
|
77,678
|
Asset
|
625,054
|
166,547
|
53,505
|
160,113
|
(17,800)
|
987,419
|
|
|
|
|
|
|
|
Consolidated
assets by operating segment - 12.31.2019
|
|
|
E&P
|
Refining,
Transportation & Marketing
|
Gas
&
Power
|
Corporate
and other business
|
Eliminations
|
Total
|
Current
assets
|
23,114
|
49,467
|
7,789
|
51,186
|
(19,455)
|
112,101
|
Non-current
assets
|
598,746
|
125,951
|
43,451
|
45,911
|
(149)
|
813,910
|
Long-term
receivables
|
26,022
|
13,296
|
5,517
|
26,471
|
−
|
71,306
|
Investments
|
2,387
|
4,472
|
4,299
|
11,008
|
−
|
22,166
|
Property,
plant and equipment
|
493,746
|
107,659
|
32,975
|
7,718
|
(149)
|
641,949
|
Operating
assets
|
428,589
|
95,245
|
22,593
|
7,191
|
(149)
|
553,469
|
Under
construction
|
65,157
|
12,414
|
10,382
|
527
|
−
|
88,480
|
Intangible
assets
|
76,591
|
524
|
660
|
714
|
−
|
78,489
|
Asset
|
621,860
|
175,418
|
51,240
|
97,097
|
(19,604)
|
926,011
|
Accounting
practices for segment information are described in note 13 - Segment information - Results.
|
34.1.
|
Balance
by type of finance debt
|
|
Consolidated
|
Parent
Company
|
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
Banking
Market
|
26,069
|
21,452
|
25,981
|
20,428
|
Capital
Market
|
13,053
|
13,980
|
12,145
|
12,694
|
Development
banks
|
6,836
|
7,766
|
1,142
|
1,940
|
Related
parties
|
−
|
−
|
10,580
|
61,142
|
Others
|
51
|
53
|
−
|
−
|
In
Brazil
|
46,009
|
43,251
|
49,848
|
96,204
|
Banking
Market
|
70,576
|
66,727
|
25,908
|
22,080
|
Capital
Market
|
143,557
|
130,899
|
−
|
−
|
Development
banks
|
1,047
|
163
|
1,047
|
163
|
Export
Credit Agency
|
17,793
|
13,033
|
−
|
−
|
Related
parties
|
−
|
−
|
357,471
|
244,391
|
Others
|
1,056
|
909
|
−
|
−
|
Abroad
|
234,029
|
211,731
|
384,426
|
266,634
|
Total
|
280,038
|
254,982
|
434,274
|
362,838
|
Current
|
21,751
|
18,013
|
76,783
|
150,931
|
Non-current
|
258,287
|
236,969
|
357,491
|
211,907
|
The
amount classified in current liabilities comprises:
|
Consolidated
|
Parent
Company
|
|
12.31.2020
|
12.31.2019
|
12.31.2019
|
12.31.2020
|
Short-term
debt
|
5,926
|
8,077
|
15,207
|
92,300
|
Current
portion of long-term debt
|
12,382
|
6,364
|
61,280
|
58,032
|
Accrued
interest on short and long-term debt
|
3,443
|
3,572
|
296
|
599
|
Current
|
21,751
|
18,013
|
76,783
|
150,931
|
As
of December 31, 2020, there were no defaults, breaches of covenants or adverse changes in clauses that resulted in changes in
the payment terms of loans and financing contracts. There was no change in the guarantees required in relation to December 31,
2019.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
34.2.
|
Changes
in finance debt and reconciliation with cash flows from financing activities
|
|
Balance
at
12.31.2018
|
Additions
|
Principal
amortization (*)
|
Interest
amorti zation (*)
|
Accrued
interest (**)
|
Foreign
exchange/ inflation indexation charges
|
Cumulative
translation adjustment (CTA)
|
Modification
of contractual cash flows
|
Transfer
to liabilities classified as held for sale
|
Balance
at 12.31.2019
|
Brazil
|
62,971
|
8,565
|
(21,665)
|
(2,925)
|
3,246
|
439
|
−
|
−
|
(7,380)
|
43,251
|
Abroad
|
263,190
|
20,894
|
(82,197)
|
(15,138)
|
15,261
|
2,129
|
7,474
|
118
|
−
|
211,731
|
Total
|
326,161
|
29,459
|
(103,862)
|
(18,063)
|
18,507
|
2,568
|
7,474
|
118
|
(7,380)
|
254,982
|
|
Balance
at
12,31,2019
|
Additions
|
Principal
amortization (*)
|
Interest
amorti zation (*)
|
Accrued
interest (**)
|
Foreign
exchange/ inflation indexation charges
|
Cumulative
translation adjustment (CTA)
|
Modification
of contractual cash flows
|
Transfer
to liabilities classified as held for sale
|
Balance
at 12,31,2020
|
Brazil
|
43,251
|
7,294
|
(5,543)
|
(1,720)
|
2,034
|
693
|
−
|
−
|
−
|
46,009
|
Abroad
|
211,731
|
78,229
|
(122,397)
|
(14,958)
|
16,427
|
7,830
|
57,593
|
(398)
|
(28)
|
234,029
|
Total
|
254,982
|
85,523
|
(127,940)
|
(16,678)
|
18,461
|
8,523
|
57,593
|
(398)
|
(28)
|
280,038
|
Debt
restructuring
|
|
−
|
(6,139)
|
−
|
|
|
|
|
|
|
Deposits
linked to financing
|
|
−
|
−
|
850
|
|
|
|
|
|
|
Net
cash used in financing activities
|
|
85,523
|
(134,079)
|
(15,828)
|
|
|
|
|
|
|
(*)
It includes pre-payments.
|
(**)
It includes premium and discount over notional amounts and cost transactions associated.
|
In
2020, loans and financing were mainly used to settle old debts and manage liabilities, with a view to improving the debt profile
and better adapting to the maturity periods of long-term investments, and the cash reserve for the maintenance of the company's
liquidity.
In
the year ended December 31, 2020, proceeds from financing amounted to R$ 85,523, principally reflecting: (i) funds raised from
banking market (in Brazil and abroad), in the amount of R$ 15,885; (ii) withdrawal of R$ 38,628 in revolving credit facilities
at national and international banks, and (iii) global notes issued in the capital market in the amount of
R$ 22,815 of which R$ 13,920 relates to the issue of new bonds maturing in 2031 and R$ 8,895 the remaining relates to new bonds
issued maturing in 2050.
The
Company repaid several finance debts, in the amount of R$ 149,907, notably: (i) prepayment of banking loans in the domestic and
international market totaling R$19,517 and (ii) R$ 50,443 to repurchase of global bonds previously issued by the Company in the
capital market, with net premium paid to bond holders amounting to R$ 6,127; and (iii) total prepayment of its revolving credit
lines abroad, in the amount of R$ 40,748 (US$ 7.6 billion).
In
addition, the Company carried out, in the international banking market, operations to improve its debt profile and to extend its
maturity, not involving financial settlements, in the total amount of R$ 10,719.
|
34.3.
|
Summarized
information on current and non-current finance debt
|
|
Consolidated
|
Maturity
in
|
Until
1 year
|
1
to 2 years
|
2
to 3 years
|
3
to 4 years
|
4
to 5 years
|
From
5 years on
|
Total
(**)
|
Fair
value
|
|
|
|
|
|
|
|
|
|
Financing
in U.S. Dollars (US$) (*):
|
17,087
|
11,083
|
19,711
|
22,822
|
27,492
|
121,026
|
219,221
|
252,249
|
Floating
rate debt
|
11,014
|
11,083
|
14,890
|
18,699
|
22,378
|
11,180
|
89,244
|
|
Fixed
rate debt
|
6,073
|
−
|
4,821
|
4,123
|
5,114
|
109,846
|
129,977
|
|
Average
interest rate
|
4.8%
|
4.9%
|
4.8%
|
5.1%
|
5.3%
|
6.6%
|
6.1%
|
|
Financing
in Reais (R$):
|
4,121
|
5,972
|
9,080
|
8,078
|
2,114
|
12,948
|
42,313
|
45,415
|
Floating
rate debt
|
2,602
|
4,835
|
8,270
|
6,218
|
1,672
|
4,503
|
28,100
|
|
Fixed
rate debt
|
1,519
|
1,137
|
810
|
1,860
|
442
|
8,445
|
14,213
|
|
Average
interest rate
|
3.0%
|
3.8%
|
4.8%
|
4.5%
|
4.2%
|
4.3%
|
4.1%
|
|
Financing
in Euro (€):
|
299
|
−
|
1,829
|
77
|
2,767
|
3,831
|
8,803
|
10,359
|
Fixed
rate debt
|
299
|
−
|
1,829
|
77
|
2,767
|
3,831
|
8,803
|
|
Average
interest rate
|
4.6%
|
-
|
4.6%
|
4.7%
|
4.7%
|
4.7%
|
4.7%
|
|
Financing
in Pound Sterling (£):
|
244
|
−
|
−
|
−
|
−
|
9,457
|
9,701
|
11,666
|
Fixed
rate debt
|
244
|
−
|
−
|
−
|
−
|
9,457
|
9,701
|
|
Average
interest rate
|
6.2%
|
−
|
−
|
−
|
−
|
6.4%
|
6.3%
|
|
Total
at December 31, 2020
|
21,751
|
17,055
|
30,620
|
30,977
|
32,373
|
147,262
|
280,038
|
319,689
|
Average
interest rate
|
4.6%
|
4.8%
|
4.8%
|
5.1%
|
5.2%
|
6.4%
|
5.9%
|
|
Total
at December 31, 2019
|
18,013
|
16,002
|
18,904
|
32,392
|
34,410
|
135,261
|
254,982
|
305,044
|
Average
interest rate
|
5.1%
|
5.2%
|
5.3%
|
5.3%
|
5.3%
|
6.3%
|
5.9%
|
|
|
(*) It
includes debt raised in Brazil (in Brazilian reais) indexed to the U.S. dollar.
|
(**) The
average maturity of outstanding debt at December 31, 2020 is 11.71 years (10.80 years on December 31, 2019).
|
|
As
of December 31, 2020, the fair values of financing are mainly determined by using:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
·
|
Level
1 - prices quoted in active markets, when applicable, in the amount of R$ 172,717 (R$
152,397, on December 31, 2019); and
|
|
·
|
Level
2 - cash flow method discounted by the interpolated spot rates of the indexes (or proxies)
of the respective financing, observed in the currencies pegged, and by the credit risk
of Petrobras, in the amount of R$ 146,972 (R$ 152,647, in 31 December 2019).
|
The
sensitivity analysis of financial instruments subject to exchange rate variation is presented in note 38.3.
The
nominal (undiscounted) flow of principal and interest on financing, by maturity, is shown below:
|
Consolidated
|
Maturity
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
onwards
|
12.31.2020
|
12.31.2019
|
Principal
|
18,301
|
17,642
|
30,176
|
32,374
|
32,986
|
155,024
|
286,503
|
263,147
|
Interest
|
12,658
|
12,191
|
11,369
|
10,587
|
9,496
|
146,124
|
202,425
|
176,783
|
Total
(*)
|
30,959
|
29,833
|
41,545
|
42,961
|
42,482
|
301,148
|
488,928
|
439,930
|
(*)The
nominal flow of leases is found in note 35.
.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
|
Amount
|
Company
|
Financial
institution
|
Date
|
Maturity
|
Available
(Lines
of Credit)
|
Used
|
Balance
|
Abroad
(in US$ million)
|
|
|
|
|
|
|
|
PGT
BV
|
Syndicate
of banks
|
3/7/2018
|
2/7/2023
|
4,350
|
-
|
4,350
|
PGT
BV
|
Syndicate
of banks
|
3/27/2019
|
2/27/2024
|
3,250
|
-
|
3,250
|
PGT
BV
|
BNP
Paribas
|
12/22/2016
|
1/9/2021
|
350
|
336
|
14
|
PGT
BV
|
The
Export - Import Bank of China
|
12/23/2019
|
12/27/2021
|
750
|
714
|
36
|
Total
|
|
|
|
|
8,700
|
1,050
|
7,650
|
In
Brazil
|
|
|
|
|
|
|
|
Petrobras
|
Banco
do Brasil
|
3/23/2018
|
1/26/2023
|
2,000
|
−
|
2,000
|
Petrobras
|
Bradesco
|
6/1/2018
|
5/31/2023
|
2,000
|
2,000
|
−
|
Petrobras
|
Banco
do Brasil
|
10/4/2018
|
9/5/2025
|
2,000
|
−
|
2,000
|
Transpetro
|
Caixa
Econômica Federal
|
11/23/2010
|
Undefined
|
329
|
−
|
329
|
Total
|
|
|
|
|
6,329
|
2,000
|
4,329
|
|
|
|
|
|
|
|
|
|
|
|
In
line with the company's liabilities management strategy, committed credit lines were contracted, which are additional sources
of liquidity that will allow greater efficiency in the company's cash management.
In
March 2020, Petrobras withdrew credit lines (Revolving Credit Lines), in the amount of US$7.6 billion and R$ 2.0 billion, to reinforce
its liquidity and protect itself within the context of the COVID- 19 and the oil price shock.
In
the third quarter of 2020, Petrobras made the total prepayment of its credit lines committed abroad (Revolving Credit Lines),
in the amount of US$ 7.6 billion. These resources are available for new withdrawals, if necessary.
|
34.5.
|
Covenants
and Collateral
|
34.5.1
Covenants
As
of December 31, 2020, the company has obligations met related to debt contracts (covenants), with emphasis on: (i) presentation
of the financial statements within 90 days for the interim periods, without review by the independent auditors, and 120 days for
the end of the year, with cure periods that extend these periods by 30 and 60 days, depending on the contract; (ii) Negative Pledge
/ Permitted Liens clause, where Petrobras and its material subsidiaries undertake not to create liens on their assets to guarantee
debts beyond those allowed; (iii) compliance with the laws, rules and regulations applicable to the conduct of its business including
(but not limited to) environmental laws; (iv) clauses in financing agreements that require both the borrower and the guarantor
to conduct their business in compliance with anti-corruption laws and anti-money laundering laws and that establish and maintain
policies necessary for such compliance; (v) clauses in financing contracts that restrict relations with entities or even countries
sanctioned mainly by the United States (including, but not limited to the Office of Foreign Assets Control -OFAC) Department of
State and Department of Commerce, the European Union and the United Nations; and (vi) clauses related to the level of indebtedness
in certain debt contracts with BNDES.
34.5.2Collateral
Financial
institutions do not normally require guarantees for loans and financing granted to the Parent Company. However, there are financing
granted by specific instruments, which have real guarantees. Additionally, there is a financing contract obtained from the China
Development Bank (CDB), which also has a collateral, according to note 39.6.
Loans
obtained by structured entities are guaranteed by the projects themselves, as well as by pledge of credit rights.
Financing
with the capital market, which corresponds to securities issued by the company, does not have collateral.
Accounting
Policy
Financing
is initially recognized at fair value less transaction costs directly attributable, and subsequently measured at amortized cost
using the effective interest method. When your contractual terms are modified and such modification is not substantial, your accounting
balances will reflect the present value of your cash flows under the new terms, using the original effective interest rate. The
difference between the book balance of the remeasured instrument at the time of a non-substantial change in its terms and its
book balance immediately prior to such change is recognized as a gain or loss in the statement of income of the period. When such
a change is substantial, the original financing is extinguished and a new financial liability is recognized, with an impact on
the income for the period.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
The
leases mainly include oil and natural gas production units, drilling rigs and other exploration and production equipment, ships,
support vessels, helicopters, land and buildings. The movement of lease contracts recognized as liabilities is shown below:
|
Consolidated
|
|
Balance
at 12.31.2019
|
Remeasurement
/ new contracts
|
Payment
of principal and interest
|
Unwinding
of discount
|
Foreign
exchange gains and losses
|
Cumulative
translation adjustment (CTA)
|
Transfers
|
Balance
at 12.31.2020
|
Brazil
|
22,183
|
3,360
|
(8,044)
|
1,508
|
3,662
|
−
|
(113)
|
22,556
|
Abroad
|
73,996
|
11,211
|
(21,880)
|
5,305
|
11,451
|
9,901
|
(30)
|
89,954
|
Total
|
96,179
|
14,571
|
(29,924)
|
6,813
|
15,113
|
9,901
|
(143)
|
112,510
|
Payments
relating to liabilities held for sale
|
|
|
(351)
|
|
|
|
|
|
Cash
flow
|
|
|
(30,275)
|
|
|
|
|
|
As
of December 31, 2020, the value of the lease liability of Petrobras Parent Company is R$ 121,288 (R$ 188,204 as of December 31,
2019), including leases and sub-leases with investees, mainly vessels with PNBV and Transpetro. The reduction that occurred during
the year of 2020 is basically due to the termination of contracts, resulting from the nationalization of platforms of the PNBV
group, which became part of the Parent company's fixed assets.
As
of December 31, 2020, the nominal flow (not discounted) without considering the projected future inflation in the lease contract
flows, by maturity, is shown below:
|
Consolidated
|
Nominal
Future Payments
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
onwards
|
Total
|
Recoverable
Taxes
|
Without
readjustment
|
|
|
|
|
|
|
|
|
Vessels
|
14,883
|
11,361
|
6,097
|
3,602
|
1,833
|
6,036
|
43,812
|
1,286
|
Others
|
709
|
433
|
232
|
45
|
3
|
−
|
1,422
|
83
|
With
readjustment - abroad (*)
|
|
|
|
|
|
|
|
|
Platforms
|
7,811
|
6,729
|
6,591
|
6,363
|
6,192
|
49,729
|
83,415
|
−
|
Vessels
|
3,772
|
2,005
|
604
|
605
|
604
|
1,314
|
8,904
|
−
|
With
readjustment – Brazil
|
|
|
|
|
|
|
|
|
Vessels
|
1,751
|
1,055
|
780
|
572
|
389
|
277
|
4,824
|
432
|
Properties
|
525
|
452
|
469
|
439
|
439
|
4,866
|
7,190
|
71
|
Others
|
464
|
365
|
281
|
71
|
21
|
54
|
1,256
|
79
|
Nominal
value on December 31 2020
|
29,915
|
22,400
|
15,054
|
11,697
|
9,481
|
62,276
|
150,823
|
1,951
|
Nominal
value on December 31 2019
|
23,785
|
20,086
|
14,155
|
10,628
|
8,723
|
52,631
|
130,008
|
1,873
|
(*)
Agreements in U.S. dollars.
|
The
following is the main information by family of lease agreements, where platforms and vessels represent approximately 95% of the
lease liability:
Consolidated
Present
Value of Future Payments
|
Discount
rate (% per year)
|
Average
Period (Years)
|
Recoverable
taxes
|
12.31.2020
|
12.31.2019
|
Without
readjustment
|
|
|
|
|
|
Vessels
|
3.9933
|
5.3
|
1,187
|
38,776
|
29,019
|
Others
|
2.5681
|
2.3
|
76
|
1,365
|
1,289
|
With
readjustment - abroad (*)
|
|
|
|
|
|
Platforms
|
6.1264
|
13.4
|
0
|
55,849
|
52,161
|
Vessels
|
4.6173
|
4.1
|
0
|
7,952
|
4,233
|
With
readjustment – Brazil
|
|
|
|
|
|
Vessels
|
6.728
|
3.9
|
369
|
4,127
|
4,622
|
Properties
|
8.4268
|
20.8
|
55
|
3,341
|
3,462
|
Others
|
6.431
|
3.3
|
69
|
1,100
|
1,393
|
TOTAL
|
5.5398
|
10.4
|
1,756
|
112,510
|
96,179
|
(*)
Incremental nominal rate on company loans, calculated based on the yield curve of bonds and credit risk of the company, as well
as term adjusted by the duration of the respective payment flow and guarantees of the lease agreements.
In
certain contracts, during the lease term, there are payments that vary due to changes in facts or circumstances that occurred
after their start date, in addition to the passage of time. Such payments are not included in the measurement of lease obligations.
In 2020, these amounts were R$ 4,033 and represented 13% in relation to fixed payments (R$ 2,611 and 13% in relation to fixed
payments, in the year ended December 31, 2019).
In
2020, the company recognized lease expenses in the amount of R$ 583 (R$ 2,929 in the year ended December 31, 2019), referring
to contracts with a term of less than one year.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
As
of December 31, 2020, the balances of lease agreements that had not yet been initiated, due to the related assets being under
construction or not being made available for use, represent the amount of R$ 350,299 (R$ 200,788 as of December 2019). The increase
that occurred during the year of 2020 is basically due to commitments to charter six floating production units.
The
sensitivity analysis of financial instruments subject to exchange rate variation is presented in note 38.3.
Accounting
Policy
Lease
liabilities, including those whose underlying assets are of low value, are measured at the present value of lease payments without
reflecting projected future inflation, which take into account taxes to be recovered, as well as non-cancellable terms and extension
options when they are reasonably certain. These payments are discounted at the nominal incremental rate on the company's loans,
since the interest rates implicit in lease agreements with third parties cannot normally be determined promptly.
Lease
liability remeasurements reflect changes arising from contractual rates, as well as in lease terms due to new expectations of
lease extensions or terminations.
The
interest incurred updates the lease liability and is classified as financial expenses, while payments reduce its book value. In
accordance with the company's foreign exchange risk management, exchange rate variations arising from the balance of lease liabilities
denominated in US dollars are designated as instruments to protect cash flow hedge relationships involving highly probable future
exports (see note 38.3).
In
the E&P segment, some activities are conducted through joint operations where the company is the operator. In cases where
all parties to the joint operation are primarily responsible for the lease payments, the company recognizes the lease liability
in proportion to its share. In addition, underlying assets arising from a specific company lease may be used in a joint operation.
In these cases, the lease liabilities remain fully recognized and the collection from partners is carried out in proportion to
their interests.
Payments
associated with short-term leases (term of 12 months or less) are recognized as an expense over the term of the contract.
|
36.1.
|
Share
capital (net of share issuance costs)
|
On
December 31, 2020 and 2019, subscribed and fully paid share capital, net of issuance costs, in the amount of R$ 205,432 is represented
by 13,044,496,930 shares, of which R$ 117,208 referring to 7,442,454,142 common shares and R$ 88,224 referring to 5,602,042,788
preferred shares, all nominative, book-entry and without par value. Preferred shares have priority in the case of capital reimbursement,
do not guarantee voting rights and are not convertible into common shares.
Accounting
policy
Incremental
expenses directly attributable to the issue of shares are presented as a deduction from shareholders’ equity, as capital
transactions, net of tax effects.
Book-entry
shares held by Petrobras in the amount of R$ 7, recognized against treasury shares.
|
36.3.
|
Capital
transactions
|
36.3.1Incremental
costs directly attributable to the issue of shares
Transaction
costs incurred in raising funds by issuing shares, net of taxes.
36.3.2Change
in interest in subsidiaries
Differences
between the amount paid and the book value resulting from changes in interests in subsidiaries that do not result in loss of control,
considering that they refer to capital transactions, that is, transactions with shareholders, as owners.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
36.3.3Treasury
shares
Petrobras
shares held in treasury in the amount of R$ 7, constituted in 2018, represented by 222,760 common shares and 72,909 preferred
shares.
36.4.1Legal
reserve
Recognized
through the appropriation of 5% of net income for the year, in accordance with Article 193 of the Brazilian Corporation Law.
36.4.2Statutory
reserve
Recognized
through the appropriation of the net income for each year of an amount equivalent to 0.5% of the paid-in capital at the end of
the year and is used to fund research and technological development programs. The balance of this reserve cannot exceed 5% of
paid-in capital, in accordance with article 56 of the company's Bylaws.
36.4.3Tax
incentives reserve
Recognized
by allocating a portion of the income for the year equivalent to tax incentives, resulting from donations or government subsidies,
in accordance with Article 195-A of the Brazilian Corporation Law. This reserve can only be used to absorb losses or increase
capital.
Accounting
policy
Recognized
when there is reasonable certainty that the benefit will be received and that all conditions established and related to the grant
will be met by the company.
36.4.4Profit
retention reserve
It
is intended for investment in capital budgeted investments, mainly in exploration and development of oil and gas production, in
accordance with Article 196 of the Brazilian Corporation Law.
The
shareholders will be entitled, each year, to dividends, which may not be less than 25% of the adjusted net income, in the form
of the Brazilian Corporation Law, prorated by the shares in which the company's capital is divided.
Preferred
shares have priority in receiving dividends of at least 5% (five percent) calculated on the part of the capital represented by
this type of shares, or 3% (three percent) of the share's equity value, the largest always prevailing, participating, in the same
way as common shares, in the capital increases resulting from the incorporation of reserves and income. This priority in receiving
dividends does not, in itself, guarantee the payment of dividends in fiscal years in which the company does not earn an income.
The
payment of dividends may only be made to holders of preferred shares, if the priority dividends absorb all the adjusted net income
for the year or reach an amount equal to or greater than the mandatory minimum dividend of 25%.
The
Shareholder Remuneration Policy states that if the consolidated gross debt is: (i) less than US$ 60 billion, the company may distribute
to its shareholders 60% of the difference between operating cash flow and acquisition of property, plant and equipment and intangibles,
except for payments in the participation in the bidding rounds for exploration and production of oil and natural gas; (ii) greater
than US$ 60 billion, the company may distribute to its shareholders the minimum mandatory dividends provided for by law and in
its bylaws.
Additionally,
on October 27, 2020, the company approved the revision of the Shareholder Remuneration Policy in order to allow Management to
propose the payment of dividends compatible with the company's cash generation, even in years when it is not determined net income.
Accounting
policy
Compensation
to shareholders is in the form of dividends and / or interest on equity based on the limits defined by law and the company's bylaws.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Interest
on equity is charged to the dividend for the year, as provided for in the bylaws, recorded in the income statement, as required
by tax legislation, and reversed against retained earnings in equity in a manner similar to the dividend, resulting in a tax credit
for income tax and social contribution recognized in income for the year.
The
portion of dividends provided for in the bylaws or that represents the minimum mandatory dividend is recognized as a liability
in the financial statements. Any excess must be kept in shareholders' equity, in the proposed additional dividend account, until
the final resolution to be taken by the shareholders at the General Shareholders’ Meeting.
36.5.1Proposed
dividends
The
dividend proposal recorded in the company's financial statements, subject to approval by the General Shareholders’ Meeting,
is shown as follows:
|
2020
|
2019
|
Net
income of the year (Parent Company) attributable to shareholders of Petrobras
|
7,108
|
40,137
|
Appropriation:
|
|
|
Legal
reserve
|
(356)
|
(2,007)
|
Tax
incentive reserve
|
−
|
(738)
|
Other
reversions/additions:
|
(14)
|
10
|
Adjusted
income (*)
|
6,738
|
37,402
|
|
|
|
Minimum
mandatory dividends:
|
|
|
Dividends
of 2019 year
|
−
|
10,682
|
Dividends
of 2020 year (priority of the shareholders that have preferred shares)
|
4,411
|
−
|
Dividends
in addition to common shares:
|
|
|
Additional
dividends of the remaining portion of net income
|
1,300
|
−
|
Additional
dividends from the profit retention reserve (**)
|
4,561
|
−
|
Total
of proposed dividends
|
10,272
|
10,682
|
Preferred
shares (PN) - R$ 0.787446 per share in 2020 (R$ 0.9255 per share in 2019)
|
4,411
|
5,185
|
Common
shares (ON) - R$ 0.787446 per share in 2020 (R$ 0.7387 per share in 2019)
|
5,861
|
5,497
|
(*)
In addition to the allocation of net income for the year mentioned above, after the constitution of the mandatory minimum
dividends, there was a constitution of a statutory reserve in the amount of R$ 1,027 in 2020 (R$ 1,027 in 2019). In 2019,
a profit retention reserve of R$ 25,693 was constituted.
|
(**)
Balance of profit retention reserve of R$ 95,333 in 2019.
|
The
proposal for compensation to shareholders to be sent by Management for approval by the General Shareholders’ Meeting of
2021, in the amount of R$ 10,272, includes the mandatory dividend equivalent to the priority of preferred shareholders in the
amount of R$ 4,411, whose criterion that prevailed was 5% on the part of the capital represented by this type of shares, and the
additional dividends of R$ 5,861 to ordinary shareholders, arising from the remaining portion of the net income for the year and
the profit retention reserve, considering that the payment is compatible with the generation in the year and the company's financial
sustainability is preserved.
These
additional dividends proposed in the amount of R$ 5,861 are highlighted in a shareholders' equity account on December 31, 2020
until the proposal is approved on the General Shareholders’ Meeting of 2021, when it will be recognized as a liability.
In
2019, the compensation proposal submitted by Management and approved by the 2020 General Shareholders’ Meeting, was R$ 10,682
(R$ 0.9255 per preferred share and R$ 0.7387 per common share), including the minimum mandatory dividend in the percentage of
25% of adjusted net income and withholding income tax of 15% of total dividends anticipated in the form of interest on equity.
36.5.2Dividends
to be paid
As
of December 31, 2020, the remuneration to the shareholders of the parent company in current liabilities is R$ 4,411 (R$ 0.787446
per preferred share), representing the minimum mandatory dividend. In addition to the dividends of the parent company, there are
dividends from non-controlling shareholders of Gaspetro (R$ 25) and other subsidiaries (R$ 21), totaling R$ 4,457 of dividends
payable in the consolidated.
The
remuneration to shareholders will be made available on the date to be fixed in the General Shareholders’ Meeting, being
monetarily restated, by the variation of the SELIC rate, from December 31, 2020 until the date of beginning of payment:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
Consolidated
and Parent Company
|
|
2020
|
2019
|
Basic
and diluted denominator – Net income (loss) attributable to shareholders of Petrobras attributable equally between share
classes
|
|
|
Continuing
operations
|
|
|
Common
|
4,055
|
17,271
|
Preferred
|
3,053
|
13,001
|
|
7,108
|
30,272
|
Discontinued
operations
|
|
|
Common
|
−
|
5,628
|
Preferred
|
−
|
4,237
|
|
−
|
9,865
|
Net
income of the year
|
|
|
Common
|
4,055
|
22,899
|
Preferred
|
3,053
|
17,238
|
|
7,108
|
40,137
|
Basic
and diluted denominator - Weighted average number of outstanding shares
|
|
|
Common
|
7,442,231,382
|
7,442,231,382
|
Preferred
|
5,601,969,879
|
5,601,969,879
|
|
13,044,201,261
|
13,044,201,261
|
|
|
|
Basic
and diluted earnings per share of continuing operations (R$ per share)
|
|
|
Common
|
0.54
|
2.32
|
Preferred
|
0.54
|
2.32
|
|
|
|
Basic
and diluted earnings per share of discontinued operations (R$ per share)
|
|
|
Common
|
−
|
0.76
|
Preferred
|
−
|
0.76
|
|
|
|
Basic
and diluted earnings per share (R$ per share)
|
|
|
Common
|
0.54
|
3.08
|
Preferred
|
0.54
|
3.08
|
|
Basic
earnings per share are calculated by dividing the income or (loss) for the year attributed to the company's shareholders by the
weighted average number of shares outstanding.
Diluted
earnings per share are calculated by adjusting income or (loss) and the weighted average number of shares taking into account
the conversion of all potential shares with a dilution effect (equity instruments or contracts capable of resulting in the issue
of actions).
The
earnings obtained, basic and diluted, present the same amount per share because Petrobras does not have potential shares.
|
37.
|
Fair
value of financial assets and liabilities
|
|
Fair
value measured based on
|
|
Level
I
|
Level
II
|
Level
III
|
Total
fair
value
recorded
|
Assets
|
|
|
|
|
Marketable
securities
|
3,388
|
−
|
−
|
3,388
|
Foreign
currency derivatives
|
−
|
348
|
−
|
348
|
Interest
rate derivatives
|
−
|
243
|
−
|
243
|
Balance
at December 31, 2020
|
3,388
|
591
|
−
|
3,979
|
Balance
at December 31, 2019
|
3,556
|
235
|
−
|
3,791
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Foreign
currency derivatives
|
|
(1,402)
|
−
|
(1,402)
|
Commodity
derivatives
|
(51)
|
−
|
−
|
(51)
|
Balance
at December 31, 2020
|
(51)
|
(1,402)
|
−
|
(1,453)
|
Balance
at December 31, 2019
|
(112)
|
(445)
|
−
|
(557)
|
|
The
estimated fair value for the company's financing, calculated at current market rates, is presented in note 34.
In
accounts receivable, certain receivables are classified in the fair value category through profit or loss, according to note 14.
The
fair values of cash and cash equivalents, short-term debt and other financial assets and liabilities are equivalent
or do not differ significantly from their book values.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Petrobras
is exposed to a series of risks arising from its operations, such as the risk related to the prices of oil and oil products, exchange
and interest rates, credit and liquidity risk. Corporate risk management is part of the company's commitment to act ethically
and in compliance with the legal and regulatory requirements established in the countries where it operates.
For
the management of market / financial risks, preferably structural actions are adopted, created as a result of an adequate management
of the company's capital and indebtedness. Risks are managed considering governance and established controls, specialized units
and monitoring in statutory committees under the guidance of the Executive Board and the Board of Directors. In the company, risks
must be considered in all decisions and their management must be carried out in an integrated manner, taking advantage of the
benefits of diversification.
|
38.1.
|
Derivative
financial instruments
|
The
following tables present a summary of the positions of derivative financial instruments held by the company on December 31, 2020,
recognized as other current assets and liabilities, in addition to the amounts recognized in the income statement, other comprehensive
income for the year and guarantees given as collateral by nature operations:
|
Statement
of Financial Position
|
|
Notional
value
|
Fair
value
Asset
Position (Liability)
|
Maturity
|
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
|
Derivatives
not designated for hedge accounting
|
|
|
|
|
|
Future
contracts - total (*)
|
(240)
|
(10,383)
|
(51)
|
(112)
|
|
Long
position/Crude oil and oil products
|
3,927
|
9,865
|
−
|
−
|
2021
|
Short
position/Crude oil and oil products
|
(4,167)
|
(20,248)
|
−
|
−
|
2021
|
|
|
|
|
|
|
Forward
contracts
|
|
|
|
|
|
Long
position/Foreign currency forwards (BRL/USD) (**)
|
-
|
US$
273
|
−
|
(1)
|
-
|
Long
position/Foreign currency forwards (EUR/USD) (**)
|
-
|
EUR
2,245
|
−
|
(183)
|
-
|
Long
position/Foreign currency forwards (GPB/USD) (**)
|
GBP
354
|
GBP
388
|
121
|
40
|
2021
|
Short
position/Foreign currency forwards (GPB/USD) (**)
|
-
|
GBP
224
|
−
|
(58)
|
-
|
Swap
|
|
|
|
|
|
Foreign
currency / Cross-currency Swap (**)
|
GBP
615
|
GBP
700
|
227
|
126
|
2026
|
Foreign
currency / Cross-currency Swap (**)
|
GBP
600
|
GBP
600
|
(134)
|
(203)
|
2034
|
Swap
– IPCA
|
3,008
|
3,008
|
243
|
24
|
2029/2034
|
Foreign
currency / Cross-currency Swap (**)
|
US$
729
|
US$
729
|
(1,268)
|
45
|
2024/2029
|
Total
recognized in the Statement of Financial Position
|
|
|
(862)
|
(322)
|
|
(*)Notional
value in thousands of bbl.
|
(**) Amounts
in US$, GBP and EUR are presented in million.
|
|
Gain/(Loss)
recognized in the statement of income
|
|
2020
|
2019
|
Commodity
derivatives
|
|
|
Crude
oil - 38.2 (a) (b)
|
(2,847)
|
(831)
|
Gasoline
- 38.2 (b)
|
−
|
44
|
Diesel
- 38.2 (b)
|
−
|
(48)
|
Other
operations- 38.2 (c)
|
873
|
(592)
|
Recognized
in Other Income and Expenses
|
(1,974)
|
(1,427)
|
Currency
derivatives
|
|
|
Swap
Pound Sterling x Dollar - 38.3 (b)
|
278
|
(54)
|
NDF
– Euro x Dollar- 38.3 (b)
|
(48)
|
(589)
|
NDF
– Pound Sterling x Dollar - 38.3 (b)
|
116
|
(33)
|
Swap
CDI x Dollar - 38.3 (b)
|
(1,301)
|
45
|
Others
|
(6)
|
20
|
|
(961)
|
(611)
|
Interest
rate derivatives
|
|
|
Swap
- CDI X IPCA
|
196
|
24
|
|
196
|
24
|
Cash
flow hedge on exports (*)
|
(24,308)
|
(12,397)
|
Recognized
in Finance Income (Expense)
|
(25,073)
|
(12,984)
|
Total
|
(27,047)
|
(14,411)
|
(*)
According to note 38.3.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
Gains/
(losses) recognized in other comprehensive income in the year
|
|
2020
|
2019
|
Cash
flow hedge on exports (*)
|
(75,159)
|
(1,072)
|
|
|
|
(*)
According to note 38.3.
|
|
|
Guarantees
given as collateral
|
|
12.31.2020
|
12.31.2019
|
Commodity
derivatives
|
69
|
244
|
Currency
derivatives
|
403
|
637
|
|
472
|
881
|
A
sensitivity analysis of the derivative financial instruments for the different types of market risks as of December 31, 2020 is
set out as follows:
|
|
Consolidated
|
Financial
Instruments
|
Risk
|
Probable
Scenario (*)
|
Reasonably
possible
scenario
|
Remote
Scenario
|
Derivatives
not designated for hedge accounting
|
|
|
|
|
|
|
|
Future
contracts and forward contracts (swap)
|
Crude
oil and oil products - price changes
|
−
|
(142)
|
(285)
|
|
|
|
|
|
−
|
(142)
|
(285)
|
⁽*⁾
The probable scenarios were calculated considering the following variations for risks: Oil and Derivatives Prices: fair value
as of December 31, 2020 / Real x Dollar – 0.9% appreciation of the real. Source: Focus. Reasonably possible and remote scenarios
consider 25% and 50% deterioration in the associated risk variables, respectively.
|
38.2.
|
Risk
management of crude oil and oil products prices
|
Petrobras
has a preference for exposure to the price cycle, the systematic protection of transactions for the purchase or sale of goods,
whose objective is to meet its operational needs, using derivative financial instruments. However, subject to the analysis of
the business environment and the prospects for carrying out the Strategic Plan, the execution of an occasional hedging strategy
with derivatives may be applicable.
a)Crude
oil
In
March 2020, in order to preserve the Company's liquidity, Petrobras approved a protection strategy for systemic oil operations
in order to protect the revenue flows arising from these transactions against uncertainties in the prices of exports of oil feedstock
already loaded, but not priced, due to the high volatility of the current context, generated both by the effects of falling oil
prices and by the effects of COVID-19 on world consumption of oil and oil products.
As
a result of this strategy, forward and swap transactions were carried out between April and May 2020, with effects on the result
between April and August this year. Swap transactions do not require an initial disbursement, whereas future transactions require
margin deposits, depending on the volume contracted.
b)Protection
Strategies adopted in 2018 and 2019
Oil
In
March 2019, Petrobras implemented a protection strategy for part of its oil production planned for 2019. As a result of this strategy,
put options were purchased with an exercise price referenced to the average Brent oil price, of April to the end of 2019, at the
level of US$ 60/ barrel, with a total paid premium of US$ 320.
However,
throughout the third quarter of 2019, due to the significant reduction in cash flow uncertainties related to the realization of
the company's Strategic Plan for the year 2019, Petrobras sold its put options, with the exercise price referenced in average
price of Brent oil, from April to the end of 2019, at the level of US$ 60 / barrel, with a total premium received of US$ 101 million.
Gasoline
In
September 2018, the company started to adopt a derivative strategy applied to gasoline and foreign exchange prices (NDF - Non
Deliverable Forward), aiming at giving flexibility to the management in the price policy and allowing the option to change the
frequency of daily readjustments prices of gasoline in the domestic market, being able to keep it stable for short periods of
up to 15 days.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Diesel
In
order to give additional management flexibility in the pricing policy, in December 2018, Petrobras extended the derivatives strategy
to diesel and foreign exchange prices (NDF - Non Deliverable Forward), in a manner similar to the strategy applied to gasoline.
In June 2019, Petrobras approved the review of the frequency of readjustments in diesel oil prices (initially revised in March
2019 for periods of not less than 15 days) and gasoline. Since then, the price adjustments for these derivatives in the domestic
market started to be carried out without a defined periodicity.
In
the application of the approved derivatives strategy, the principles that guided the practice of competitive prices were maintained,
such as the international parity price (PPI), margins to remunerate the risks inherent to the operation, level of market share
and protection mechanisms via derivatives.
c)Other
commodity derivative transactions
Petrobras,
using its assets, positions and proprietary and market knowledge from its operations in Brazil and abroad, seeks to capture market
opportunities through the purchase and sale of oil and oil products, which can occasionally be optimized with the use of commodity
derivative instruments to manage price risk in a safe and controlled manner.
|
38.3.
|
Foreign
exchange risk management
|
Petrobras'
Risk Management Policy provides that the company, in principle, practices integrated risk management whose focus is not on the
individual risks of operations or business units, but on the broader perspective and more consolidated view of the corporation,
capturing possible benefits from business diversification.
The
company jointly considers all cash flows from its operations. This applies especially to the risk of changes in the exchange rate
between the real and the US dollar, for which the company evaluates in an integrated manner not only its future cash flows denominated
in US dollars, but also those cash flows denominated in reais, but influenced by the US currency, such as sales of diesel and
gasoline in the domestic market.
In
this sense, the treatment of foreign exchange risks involves, preferably, the adoption of structural actions with the definition
of conditions for the execution of operations within the scope of Petrobras' businesses.
Changes
in the spot R$ /US$ exchange rate, as well as other currencies in relation to the Real, may affect net income and the balance
sheet. Such consequences may arise mainly from foreign currency items, such as highly probable future transactions, monetary items
and firm commitments.
In
these situations, the company seeks to mitigate the effect generated by potential variations in spot exchange rates R$ /US$, mainly
by raising funds from third parties in US dollars in order to reduce the net exposure between obligations and receipts in that
currency, representing a form of structural protection, taking into account liquidity and cost competitiveness criteria.
The
protection against the risk of exchange variation of the group of future exports in US dollars of the company in a given period
occurs through the set (portfolio) of indebtedness in US dollars seeking the most efficient protection considering the changes
in the positions of such sets over time.
The
foreign exchange risk management strategy may involve the use of derivative financial instruments to treat the foreign exchange
exposure of certain obligations of the company, especially when there are commitments in currencies for which the company does
not expect to receive flows, as in the case of Pound Sterling case, for example.
In
the short term, risk treatment is carried out by allocating cash investments between real, dollar or other currency.
a)Cash
Flow Hedge involving the Company’s future exports
The
reference values, at present value, of the hedging instruments as of December 31, 2020, in addition to the expectation of reclassification
to the result of the accumulated exchange variation balance in shareholders' equity in future periods, based on a rate of R$ /
US$ 5.1967, are shown below:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
|
|
|
|
Present
value of hedging instrument notional value at
12.31.2020
|
Hedging
Instrument
|
|
Hedged
Transactions
|
|
Nature
of
the Risk
|
|
Maturity
Date
|
|
US$
million
|
R$
|
Foreign
exchange gains and losses on proportion of non-derivative financial instruments cash flows
|
|
Foreign
exchange gains and losses on a portion of highly probable
future
monthly exports revenues
|
|
Foreign
Currency
–
Real vs U.S. Dollar
Spot
Rate
|
|
From
jan/2021 to dec/2030
|
|
61,502
|
319,608
|
Changes
in the present value of hedging instrument notional value
|
US$
million
|
R$
|
Amounts
designated as of December 31, 2019
|
87,651
|
353,295
|
Additional
hedging relationships designated, designations revoked and hedging instruments re-designated
|
12,128
|
59,145
|
Exports
affecting the statement of income
|
(13,432)
|
(67,343)
|
Principal
repayments / amortization
|
(24,845)
|
(124,956)
|
Foreign
exchange variation
|
−
|
99,467
|
Amounts
designated as of December 31, 2020
|
61,502
|
319,608
|
Nominal
value of hedging instrument (finance debt and lease liability) at December 31, 2020
|
69,314
|
360,205
|
.
In
2020, the expected export values and consequently the highly probable export values were impacted
by the effects of the oil price war and the COVID-19.
Thus,
the value of exports designated for hedge relationships are no longer considered highly probable, but are still expected to occur,
and as a consequence the hedge relationships were revoked at March 31, 2020, in the amount of US$ 35,774 (R$ 185,982) of
reference amounts at present value. The foreign exchange variation accounted for these operations within other comprehensive income
up to the end of the quarter remains in shareholders' equity, and will be reclassified to the statement of income when exports
occur.
With
the Strategic Plan 2021-2025, there was an increase in expected exports, and consequently in highly probable exports, but not
in an amount equal to or greater than the debt instruments and liabilities of leases subject to be designated as protection instruments
and, as a result, the significant increase in exchange exposure (Dollar x Real), verified throughout the year, remained on December
31, 2020, ending the year as a negative exchange exposure, according to table 38.3 c - Sensitivity analysis of financial instruments
subject to exchange variation.
In
2020, an exchange loss of R$ 5 was recognized, referring to the ineffectiveness of the exchange variation line (gain of R$ 51
in 2019).
In
addition to the impacts reported above, exports whose exchange variations were designated in hedge relationships for the months
of April to December / 2020 and August to December / 2021 are no longer foreseen, and were reclassified from Shareholders’
Equity to the Statement of Income in 2020, in the amount of R$ 2,554, mainly in the first quarter of 2020.
Future
exports designated as hedges in cash flow hedge relationships represent, on average, 100% of highly probable future exports, determined
as set out in accounting practice.
The
movement of the exchange variation accumulated in other comprehensive income as of December 31, 2020, to be carried out by future
exports, is shown below:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
Exchange
rate
|
Tax
effect
|
Total
|
Balance
at January 1,2019
|
(50,414)
|
17,141
|
(33,273)
|
Recognized
in shareholders' equity
|
(13,469)
|
4,580
|
(8,889)
|
Reclassified
to the statement of income - occurred exports
|
12,397
|
(4,215)
|
8,182
|
Balance
at December 31, 2019
|
(51,486)
|
17,506
|
(33,980)
|
Recognized
in shareholders' equity
|
(99,467)
|
33,819
|
(65,648)
|
Reclassified
to the statement of income - occurred exports
|
21,754
|
(7,395)
|
14,359
|
Reclassified
to the statement of income - exports no longer expected to occur
|
2,554
|
(868)
|
1,686
|
Balance
at December 31, 2020
|
(126,645)
|
43,062
|
(83,583)
|
Changes
in expectations regarding the realization of export prices and volumes in future revisions of the business plans may determine
the need for additional reclassifications of exchange variation accumulated in shareholders' equity to the statement of income.
A sensitivity analysis with an average Brent oil price of US$ 10/barrel lower than that considered in the last review of the 2021-2025
Strategic Plan, would not indicate the need to reclassify the exchange variation of shareholders' equity to the statement of income.
The
annual expectation of realization of the accumulated exchange variation balance in shareholders' equity as of December 31, 2020
is shown below:
|
Consolidated
|
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
|
2027
|
2028
to 2030
|
Total
|
Expected
realization
|
(23,438)
|
(24,893)
|
(20,844)
|
(15,797)
|
(10,752)
|
(9,283)
|
(9,627)
|
(12,011)
|
(126,645)
|
|
Accounting
policy
At
the beginning of the hedge relationship, the company documents the hedge relationship and the risk management objective and strategy
for taking on the hedge, including the identification: of the hedge instrument, the hedged item, the nature of the risk being
hedged and assessing whether the protection ratio meets the hedge effectiveness requirements.
Considering
the natural protection ratio and the risk management strategy, the company designates hedge relationships between the exchange
rate variations of “highly probable future exports” (protected item) and the exchange rate variations of certain US
dollar obligations( instruments), so that the exchange effects of both are recognized at the same time in the income statement.
Exchange
rate variations of the proportion of cash flows from liabilities and liabilities (non-derivative financial instruments) are designated
as hedging instruments.
The
individual hedge relationships are established in a one-to-one ratio, that is, the “highly probable future exports”
of each month and the proportions of the cash flows of the indebtedness, used in each relationship and individual hedge, have
the same nominal value in US dollars. The company considers “highly probable future exports” to be only a part of
its total expected exports.
The
exposure of the company's future exports to the risk of variation in the spot exchange rate R$ /US$ (active position) is offset
by an equivalent reverse exposure of its debts in US dollars (passive position) to the same type of risk.
Hedge
relationships can be discontinued and restarted in compliance with the risk management strategy. In this sense, such assessments
are carried out monthly.
In
such hedges, the effective portion of foreign exchange gains and losses arising from hedging instruments is recognized in shareholders’
equity, in other comprehensive income and transferred to the financial result when the protected item affects the result for the
period.
In
the event that exports whose exchange variations were designated as a hedge relationship are no longer considered highly probable,
but continue to be foreseen, the hedge relationship is revoked and the accumulated exchange variation up to the revocation date
is maintained in shareholders’ equity, being reclassified to the result. at the time when exports occur.
There
may also be situations in which exports whose exchange rate variations have been designated in relation to hedging are no longer
foreseen. In these cases, the exchange variation, referring to the proportions of the debt's cash flows that exceed total exports
that are still considered foreseen, accumulated in shareholders' equity until the date of the revision in the forecast, is reclassified
immediately to the result.
In
addition, when a financial instrument designated as a hedge instrument expires or is liquidated, the company may replace it with
another financial instrument, in order to guarantee the continuity of the hedge relationship. Similarly, when a transaction designated
as a hedge object occurs, the company may designate the financial instrument that protected that transaction as a hedging instrument
in a new hedge relationship.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
The
ineffective portion of the gains and losses arising from the protection instruments is recorded in the financial result for the
period. The potential sources of ineffectiveness are due to the fact that the protected items and the protection instruments have
different maturities, as well as the rate used to discount the protected items and the protection instruments at present value.
b)
Information on ongoing contracts
Cross
currency swap – Pounds Sterling x Dollar
In
2017, Petrobras, through its indirect subsidiary Petrobras Global Trading B.V. (PGT), contracted a derivative transaction called
cross currency swap, in order to protect itself from exposure in sterling versus dollar, due to the issuance of bonds, in the
total notional value of GBP 1,300 million, of which GBP 700 million maturing in December 2026 and GBP 600 million maturing in
January 2034.
After
repurchasing of bonds, the present notional amount of these swaps is GBP 1,215 million.
Non
Deliverable Forward (NDF) Contracts - Euro x Dollar and Pound Sterling x Dollar
In
2018, Petrobras, through its indirect subsidiary Petrobras Global Trading BV (PGT), contracted derivative operations called non
deliverable forward, in order to protect itself from exposure in euro and pound sterling versus dollar, due to the issuance of
bonds .
The
net notional values of derivatives originally contracted were reduced to 2,245 million euros and 164 million pounds,
respectively, adequate to a lower exposure to the euro, provided by the repurchase of bonds in that currency throughout 2019.
Throughout
2020, the net notional values of derivatives originally contracted were reduced to £ 354 million. And the
company liquidated the euro position on the due date.
Swap
contracts – National consumer price index (IPCA) x Brazilian interbank offering rate (CDI) and CDI x Dollar
At
the end of September 2019, Petrobras contracted derivative transactions in order to protect itself from exposure arising from
the 1st series of the 7th issue of debentures, with IPCA x CDI interest swap operations, maturing in September 2029 and September
2034 and CDI x Dollar cross-currency swap operations, maturing in September 2024 and September 2029.
Changes
in future interest rate curves (CDI) may have an impact on the company's results, due to the market value of these swap contracts.
A sensitivity analysis on future interest rate curves (CDI) with a constant increase (parallel shock) of 100 basis points, keeping
all other variables constant, would result in a negative impact on the result of approximately R$ 367, while a constant reduction
(parallel shock) of 100 basis points, keeping all other variables constant, would result in a negative impact of approximately
R$ 363.
c)
Sensitivity analysis for foreign exchange risk on financial instruments
The
scenario considered probable and referenced by an external source, in addition to the possible and remote scenarios that consider
exchange rate appreciation (risk) by 25% and 50%, respectively, except for the balances of assets and liabilities in foreign currency
of foreign subsidiaries, when in a currency equivalent to their respective functional currencies, are described below:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
|
|
|
Financial
Instruments
|
Exposure
at 12.31.2020
|
Risk
|
Probable
Scenario (*)
|
Reasonably
possible
scenario
(∆ of 25%)
|
Remote
Scenario
(∆
of 50%)
|
Assets
|
24,110
|
Dollar
/ Real
|
(217)
|
6,028
|
12,055
|
Liabilities
|
(557,843)
|
|
5,013
|
(139,461)
|
(278,921)
|
Exchange
rate - Cross currency swap
|
(3,008)
|
|
27
|
(752)
|
(1,504)
|
Cash
flow hedge on exports
|
319,608
|
|
(2,872)
|
79,902
|
159,804
|
|
(217,133)
|
|
1,951
|
(54,283)
|
(108,566)
|
Assets
|
19
|
Euro
/ Real
|
(1)
|
5
|
10
|
Liabilities
|
(250)
|
|
12
|
(63)
|
(125)
|
|
(231)
|
|
11
|
(58)
|
(115)
|
Assets
|
8,859
|
Euro
/ Dollar
|
(52)
|
2,215
|
4,430
|
Liabilities
|
(17,702)
|
|
103
|
(4,426)
|
(8,851)
|
|
(8,843)
|
|
51
|
(2,211)
|
(4,421)
|
Assets
|
24
|
Pound
Sterling/ Real
|
(1)
|
6
|
12
|
Liabilities
|
(119)
|
|
5
|
(30)
|
(60)
|
|
(95)
|
|
4
|
(24)
|
(48)
|
Assets
|
9,786
|
Pound
Sterling / Dollar
|
(116)
|
2,447
|
4,893
|
Liabilities
|
(19,444)
|
|
230
|
(4,861)
|
(9,722)
|
Derivative
- cross currency swap
|
8,629
|
|
(102)
|
2,157
|
4,315
|
Non
Deliverable Forward (NDF)
|
2,511
|
|
(30)
|
628
|
1,256
|
|
1,482
|
|
(18)
|
371
|
742
|
Total
|
(224,820)
|
|
1,999
|
(56,205)
|
(112,408)
|
⁽*⁾
The probable scenarios were calculated considering the following variations for risks: Real x Dollar - appreciation of the real
by 0.9% / Euro x Dollar - devaluation of the euro by 0.6% / Pound x Dollar - devaluation of pound by 1.19% / Real x Euro - appreciation
of the real by 5% / Real x Pound - appreciation of the real by 4.6%. Source: Focus and Thomson Reuters.
|
38.4.
|
Interest
rate risk management
|
The
company, preferably, does not use derivative financial instruments to manage exposure to fluctuations in interest rates, due to
the fact that they do not have a material impact, except due to specific situations presented by Petrobras subsidiaries.
|
Consolidated
|
Risk
|
Probable
Scenario(*)
|
Possible
Scenario(∆ of 25%)
|
Remote
Scenario
(∆
of 50%)
|
LIBOR
1M
|
52
|
63
|
75
|
LIBOR
3M
|
67
|
78
|
89
|
LIBOR
6M
|
2,149
|
2,406
|
2,662
|
CDI
|
432
|
540
|
648
|
TJLP
|
438
|
548
|
657
|
IPCA
|
399
|
499
|
599
|
|
3,537
|
4,134
|
4,730
|
(*)
The probable scenario was calculated considering the quotations of currencies and floating rates to which the debts are indexed.
|
The
credit risk management policy aims to minimize the possibility of not receiving sales made and amounts invested, deposited or
guaranteed by financial institutions and counterparties, by analyzing, granting and managing credits, using appropriate quantitative
and qualitative parameters for each one of the market segments in which it operates.
The
commercial credit portfolio is highly diversified among clients in the domestic market and in foreign markets.
Credit
granted to financial institutions is used to accept guarantees, apply surplus cash and define counterparties in derivative transactions,
being distributed among the main international banks classified as “investment grade” by the main international risk
classifiers and Brazilian banks with minimum risk rating brA- / A3.br / A- (bra).
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
38.5.1Credit
quality of financial assets
a)Trade
and other receivables
Most
of Petrobras' clients do not have a risk rating granted by rating agencies. Thus, in order to define and monitor credit limits,
the customer's type of operational activity, commercial relationship, financial history with Petrobras and its financial statements,
among other aspects, are evaluated.
b)Other
financial assets
The
credit quality of financial assets classified as cash and cash equivalents and marketable securities is based on the risk rating
granted by Standard & Poor’s, Moody's and Fitch rating agencies. Information on these financial assets, which are not
past due and with no evidence of loss, is provided below:
|
Consolidated
|
|
Cash
and cash equivalents
|
Marketable
securities
|
|
2020
|
2019
|
2020
|
2019
|
AA
|
10,365
|
4,245
|
−
|
−
|
A
|
12,279
|
4,729
|
−
|
−
|
BBB
|
874
|
167
|
−
|
−
|
BB
|
21,589
|
14,473
|
−
|
3,379
|
AAA.br
|
3,499
|
321
|
3,389
|
135
|
AA.br
|
10,184
|
4,934
|
226
|
194
|
Other
classifications
|
2,066
|
845
|
36
|
104
|
|
60,856
|
29,714
|
3,651
|
3,812
|
|
The
possibility of insufficient cash or other financial assets to settle obligations on the scheduled dates is managed by the company
through actions such as:
|
·
|
centralization
of the system's cash, optimization of cash equivalents and reduction of working capital
requirements;
|
|
·
|
maintenance
of robust cash that ensures the continuity of investments and the fulfillment of short-term
obligations, even in adverse market conditions;
|
|
·
|
lengthening
the average debt maturity, expanding financing sources, exploring the capacity of the
domestic and international markets (new proceeds of financing resources products and
new markets); and
|
|
·
|
use
of resources from the divestment program.
|
The
company regularly evaluates market conditions and can carry out repurchase transactions of its securities or of securities of
its subsidiaries in the international capital market, by various means, including repurchase offers, securities redemptions and
/ or open market operations, provided they are in line with the company's liabilities management strategy, which aims to improve
the amortization profile and the cost of debt.
Actions
to protect the company's liquidity
As
a result of the abrupt reduction in prices and demand for oil and fuels, caused by the impact of the increase in COVID-19 in the
world, in line with the increase in oil supply, the company adopted a series of measures to reduce disbursements and preserve
the cash in this scenario of uncertainties, in order to strengthen its financial strength and the resilience of its businesses.
The
measures adopted by the company to protect liquidity are described in note 6 - Resilience Actions - COVID-19.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
For
the protection of its assets, Petrobras transfers, by taking out insurance, the risks that, in the event of incidents, may cause
losses that significantly impact the company's equity, as well as the risks subject to mandatory insurance, either by legal or
contractual provisions. For these insurance policies, the company still assumes part of its risk, through deductibles that can
reach the amount equivalent to US$ 180 million. The other risks are self-insured, with Petrobras intentionally assuming the full
risk, without contracting insurance coverage.
In
addition, the company has indemnity commitments as detailed in note 39.10.
The
main information about the insurance coverage in force on December 31, 2020 can be demonstrated as follows:
|
|
|
Amount
insured
|
Asset
|
Types
of coverage
|
Consolidated
|
Parent
Company
|
Facilities,
equipment inventory and products inventory
|
Fire,
operational risks and engineering risks
|
671,695
|
563,212
|
Tankers
and auxiliary vessels
|
Hulls
|
13,409
|
2,052
|
Fixed
platforms, floating production systems and offshore drilling units
|
Oil
risks
|
230,447
|
96,162
|
Total
on December 31 2020
|
|
|
915,551
|
661,426
|
Total
on 31 December 31 2019
|
|
|
711,899
|
543,207
|
Petrobras does
not insure loss of profits, automobiles and the pipeline network in Brazil.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
39.
|
Related-party
transactions
|
The
Company has a related-party transactions policy, which is annually revised and approved by the Board of Directors, and is applicable
to all the Petrobras Group, in accordance with the Company’s by-laws.
This
policy guides Petrobras in entering into Transactions with Related Parties in order to ensure the interests of the company, in
line with transparency in processes, legal requirements and the best Corporate Governance practices, without conflict of interest
and in compliance with the following principles:
•
Competitiveness: prices and conditions of services compatible with those practiced in the market;
•
Compliance: adherence to the contractual terms and responsibilities practiced by the company;
•
Transparency: adequate reporting of the agreed conditions, as well as their effects on the company's financial statements;
•
Equity: establishment of mechanisms that prevent discrimination or privileges and adoption of practices that ensure the non-use
of privileged information or business opportunities for the benefit of individuals or third parties;
•
Commutability: proportional installments for each contractor.
Transactions
that meet the materiality criteria, established in the policy and entered into with affiliates, Brazilian federal government,
including their autarchies, foundations and controlled companies, companies controlled by key management personnel, or a close
member of their family, and with the Petros Foundation, are previously approved by the Statutory Audit Committee (CAE), with monthly
reports of these analyzes to the Board of Directors.
In
the specific case of transactions with related parties involving Brazilian federal government, its autarchies, foundations and
federal state companies, the latter when classified as outside the normal course of the company's business by CAE, which are within
the scope of approval by the Board of Directors, must be preceded by an assessment by the CAE and the Minority Shareholder Committee
and must be approved by at least 2/3 (two thirds) of the members present on the Board of Directors.
The
policy also aims to ensure the adequate and diligent decision making by the company's management.
|
39.1.
|
Business
transactions by operation with companies of the Petrobras Group (Parent Company)
|
|
12.31.2020
|
12.31.2019
|
|
Current
|
Non
current
|
Total
|
Current
|
Non
current
|
Total
|
Assets
|
|
|
|
|
|
|
Trade
and other receivables
|
|
|
|
|
|
|
Trade
and other receivables, mainly from sales
|
14,992
|
−
|
14,992
|
17,774
|
−
|
17,774
|
Dividends
receivable
|
1,134
|
−
|
1,134
|
397
|
−
|
397
|
Intercompany
loans
|
−
|
−
|
−
|
−
|
10
|
10
|
Advance
for capital increase
|
−
|
−
|
−
|
−
|
−
|
−
|
Amounts
related to construction of natural gas pipeline
|
−
|
564
|
564
|
−
|
750
|
750
|
Finance
leases
|
−
|
−
|
−
|
163
|
−
|
163
|
Other
operations
|
430
|
632
|
1,062
|
871
|
421
|
1,292
|
Trade
payables in advance
|
12
|
1,275
|
1,287
|
108
|
572
|
680
|
Total
|
16,568
|
2,471
|
19,039
|
19,313
|
1,753
|
21,066
|
Liabilities
|
|
|
|
|
|
|
Leases
(*)
|
(2,517)
|
(3,097)
|
(5,614)
|
(21,188)
|
(104,585)
|
(125,773)
|
Intercompany
loans
|
−
|
−
|
−
|
(28,555)
|
−
|
(28,555)
|
Prepayment
of exports
|
(54,871)
|
(302,601)
|
(357,472)
|
(56,066)
|
(159,769)
|
(215,835)
|
Accounts
payable to suppliers
|
(55,931)
|
−
|
(55,931)
|
(22,936)
|
−
|
(22,936)
|
Purchases
of crude oil, oil products and others
|
(53,526)
|
−
|
(53,526)
|
(19,125)
|
−
|
(19,125)
|
Affreightment
of platforms
|
(624)
|
−
|
(624)
|
(2,022)
|
−
|
(2,022)
|
Advances
from clients
|
(1,745)
|
−
|
(1,745)
|
(1,789)
|
−
|
(1,789)
|
Other
operations
|
−
|
−
|
−
|
(263)
|
(470)
|
(733)
|
Total
|
(113,319)
|
(305,698)
|
(419,017)
|
(129,008)
|
(264,824)
|
(393,832)
|
(*)
Includes amounts referring to leasing and sub-leasing transactions between companies in the Petrobras system required by IFRS
16.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
2020
|
2019
|
|
Jan-Dec
|
Jan-Dec
|
Profit
or Loss
|
|
|
Revenues,
mainly sales revenues
|
155,872
|
172,433
|
Foreign
exchange and inflation indexation charges, net (**)
|
(49,959)
|
(13,877)
|
Financial
income (expenses), net (**)
|
(29,361)
|
(24,658)
|
Total
|
76,552
|
133,898
|
(***)Includes
the amounts of R$ 39,226 of passive exchange variation and R$ 8,372 of financial expenses related to leasing and sub-leasing
operations required by IFRS 16..
|
|
|
39.2.
|
Commercial
transactions with companies of the Petrobras’ group (parent company)
|
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
|
Current
Assets
|
Non-current
Assets
|
Total
Assets
|
Total
Assets
|
Current
Liabilities
|
Non-current
Liabilities
|
Total
Liabilities
|
Total
Liabilities
|
Controlled
entities and joint ventures
|
|
|
|
|
|
|
|
|
PIB
BV
|
11,327
|
1,474
|
12,801
|
13,995
|
(107,116)
|
(302,900)
|
(410,016)
|
(380,405)
|
Gaspetro
|
1,114
|
104
|
1,218
|
1,488
|
(355)
|
−
|
(355)
|
(419)
|
Transpetro
|
703
|
166
|
869
|
545
|
(2,116)
|
(1,748)
|
(3,864)
|
(5,364)
|
Thermoelectric
plants
|
42
|
−
|
42
|
76
|
(424)
|
(462)
|
(886)
|
(1,124)
|
Real
estate investment fund
|
17
|
−
|
17
|
179
|
(173)
|
(588)
|
(761)
|
(1,111)
|
Other
subsidiaries and joint ventures
|
1,783
|
580
|
2,363
|
3,242
|
(994)
|
−
|
(994)
|
(1,196)
|
|
14,986
|
2,324
|
17,310
|
19,525
|
(111,178)
|
(305,698)
|
(416,876)
|
(389,619)
|
Structured
entities
|
|
|
|
|
|
|
|
|
CDMPI
|
−
|
−
|
−
|
−
|
(428)
|
−
|
(428)
|
(830)
|
|
−
|
−
|
−
|
−
|
(428)
|
−
|
(428)
|
(830)
|
Associates
and joint ventures
|
|
|
|
|
|
|
|
|
Petrochemical
companies
|
42
|
−
|
42
|
154
|
(46)
|
−
|
(46)
|
(116)
|
Petrobras
Distribuidora (BR)
|
830
|
147
|
977
|
860
|
(185)
|
−
|
(185)
|
(171)
|
Transportation
companies (*)
|
334
|
−
|
334
|
424
|
(991)
|
−
|
(991)
|
(2,889)
|
Other
associates and joint ventures
|
376
|
−
|
376
|
103
|
(491)
|
−
|
(491)
|
(207)
|
|
1,582
|
147
|
1,729
|
1,541
|
(1,713)
|
−
|
(1,713)
|
(3,383)
|
Total
|
16,568
|
2,471
|
19,039
|
21,066
|
(113,319)
|
(305,698)
|
(419,017)
|
(393,832)
|
(*)In
July 2020, with the sale of the entire Petrobras stake in TAG, the company was no longer an affiliate.
|
Petrobras
entered into new long-term contracts with Braskem SA for the supply of petrochemical naphtha to the industrial unit in the state
of São Paulo, in the estimated amount of R$ 19 billion, and for the supply of ethane and propane to the industrial unit
in the state of Rio de Janeiro, in the estimated amount of R$ 7.6 billion.
The
naphtha contract came into force on December 23, 2020 and will run until December 31, 2025. The amount is up to 2 million tons
per year. The ethane and propane contract will come into effect on January 1, 2021, after the termination of the current contract,
and will remain in effect until December 31, 2025.
Contract
prices are based on international references.
|
2020
|
2019
|
|
Jan-Dec
|
Jan-Dec
|
Controlled
entities and joint ventures
|
|
|
Petrobras
Distribuidora (BR) (*)
|
−
|
45,144
|
PIB
BV
|
(9,719)
|
33,888
|
Gaspetro
|
9,119
|
11,589
|
PNBV
(*)
|
−
|
(1,774)
|
Transpetro
|
408
|
720
|
Thermoelectric
plants
|
(88)
|
(161)
|
Real
estate investment fund
|
(108)
|
(121)
|
TAG
(*)
|
−
|
53
|
Other
controlled entities
|
4,484
|
3,354
|
|
4,096
|
92,692
|
Structured
Entities
|
|
|
CDMPI
|
62
|
(219)
|
|
62
|
(219)
|
Associates
and joint ventures
|
|
|
Companies
from the petrochemical sector
|
13,594
|
11,143
|
Petrobras
Distribuidora (BR)
|
57,612
|
29,909
|
Transportation
companies (**)
|
115
|
(6)
|
Other
associates and joint ventures
|
1,073
|
379
|
|
72,394
|
41,425
|
Total
|
76,552
|
133,898
|
(*)
Due to the corporate restructuring that occurred during the year of 2019, the results presented in the respective explanatory
note refer to: BR (from January to July 2019); PNBV (from January to June 2019); and, TAG (from January to June 2019).
(**)
Includes TAG results up to July 2020, the date on which the company entered into a purchase and sale agreement for its
remaining stake (note 32.2).
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
39.4.
|
Annual
rates for intercompany loans
|
|
|
Parent
Company
|
|
Asset
|
Liability
|
|
12.31.2020
|
12.31.2019
|
12.31.2020
|
12.31.2019
|
From
3.1 to 4%
|
−
|
−
|
−
|
(17,075)
|
From
4.1 to 5%
|
−
|
−
|
−
|
(11,480)
|
Above
9.01%
|
−
|
10
|
−
|
−
|
Total
|
−
|
10
|
−
|
(28,555)
|
The
balances with loan operations with its subsidiaries, both in assets and liabilities, were settled over the second half of 2020.
|
39.5.
|
Non
standardized receivables investment fund
|
The
parent company maintains funds invested in the FIDC-NP that are mainly used for the acquisition of performing and / or non-performing
credit rights for operations carried out by subsidiaries of the Petrobras Group. The amounts invested are recorded in accounts
receivable.
Assigned
and non-performed credit rights assignments are recorded as financing in current liabilities.
|
Parent
Company
|
|
12.31.2020
|
12.31.2019
|
Net
accounts receivables
|
10,121
|
52,550
|
Assignment
of receivables
|
(10,580)
|
(61,142)
|
|
2020
|
2019
|
|
Jan-Dec
|
Jan-Dec
|
Finance
income FIDC-NP
|
1,802
|
2,705
|
Finance
expense FIDC-NP
|
(1,846)
|
(2,720)
|
Net
finance income (expense)
|
(44)
|
(15)
|
Petrobras
has the procedure of granting guarantees to subsidiaries and controlled companies for some financial operations carried out in
Brazil and abroad, with no significant variations in guarantees compared to December 31, 2019.
The
guarantees offered by Petrobras, mainly personal, unpaid, are made based on contractual clauses that support the financial transactions
between the subsidiaries / controlled companies and third parties, guaranteeing assumption of compliance with the third party's
obligation, in case the original debtor does not do so.
The
financial operations carried out by these subsidiaries and guaranteed by Petrobras have the following balances to be settled:
|
12.31.2020
|
12.31.2019
|
Maturity
date
|
PGF (*)
|
PGT
(**)
|
PNBV
|
|
Others
|
Total
|
Total
|
2020
|
−
|
−
|
−
|
|
−
|
−
|
5,823
|
2021
|
−
|
1,299
|
−
|
|
2
|
1,301
|
6,578
|
2022
|
−
|
−
|
−
|
|
318
|
318
|
4,376
|
2023
|
6,732
|
520
|
1,828
|
|
781
|
9,860
|
15,398
|
2024
|
4,208
|
5,664
|
−
|
|
−
|
9,873
|
17,221
|
2025
|
8,613
|
35,416
|
−
|
|
−
|
44,028
|
32,190
|
2026
and thereafter
|
130,865
|
17,527
|
−
|
|
62
|
148,454
|
112,092
|
Total
|
150,418
|
60,426
|
1,828
|
|
1,163
|
213,834
|
193,678
|
(*)
Petrobras Global Finance B.V., subsidiary of PIB BV.
|
(**)
Petrobras Global Trading B.V., subsidiary of PIB BV.
|
PGT,
a wholly-owned subsidiary of Petrobras, provides collateral in a financing operation that Petrobras obtained from the China Development
Bank (CDB), maturing in 2026, through the collaterality of its future receivables from sales of crude oil, originating from Petrobras
exports, for specific buyers (maximum 200,000 bbl/d), with the guarantee amount limited to the debt balance, which on December
31, 2020 is R$ 26,009 (US$ 5,005 million), and on 31 December 2019 of R$ 20,178 (US$ 5,006 million).
|
39.7.
|
Investments
in debt securities of subsidiaries
|
As
of December 31, 2020, a subsidiary of PIB BV maintained resources invested directly or through an investment fund abroad that
held, among others, debt securities of PGF and a consolidated structured entity related to the CDMPI project, equivalent to R$
5,368 (R$ 3,967, as of December 31, 2019).
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
39.8.
|
Transactions
with joint ventures, associates, government entities and pension plans
|
The
company does, and expects to continue to do, business in the normal course of various transactions with its joint ventures, affiliates,
pension funds, as well as with its controlling shareholder, the Brazilian federal government, which includes transactions with
banks and other entities under its control, such as financing and banking services, asset management and others.
Significant
transactions resulted in the following balances:
|
|
Consolidated
|
|
12.31.2020
|
12.31.2019
|
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
Joint
ventures and associates
|
|
|
|
|
Petrobras
Distribuidora (BR)
|
1,020
|
205
|
904
|
191
|
Gas
transportation companies
|
383
|
994
|
605
|
2,889
|
State-controlled
gas distributors
|
1,170
|
355
|
1,361
|
421
|
Petrochemical
companies
|
88
|
46
|
188
|
116
|
Other
associates and joint ventures
|
789
|
624
|
143
|
818
|
Subtotal
|
3,450
|
2,224
|
3,201
|
4,435
|
Government
entities
|
|
|
|
|
Government
bonds
|
8,483
|
−
|
6,367
|
−
|
Banks
controlled by the Brazilian Government
|
39,892
|
19,266
|
34,600
|
19,765
|
Receivables
from the Electricity sector
|
1,064
|
−
|
1,347
|
−
|
Petroleum
and alcohol account - receivables from Brazilian Government (note 14.1)
|
2,503
|
−
|
1,226
|
−
|
Brazilian
Federal Government (Dividends)
|
9
|
−
|
−
|
1,679
|
Empresa
Brasileira de Administração de Petróleo e Gás Natural – Pré-Sal Petróleo S.A.
– PPSA
|
−
|
−
|
−
|
80
|
Others
|
201
|
238
|
185
|
176
|
Subtotal
|
52,152
|
19,504
|
43,725
|
21,700
|
Pension
plans
|
268
|
339
|
240
|
443
|
Total
|
55,870
|
22,067
|
47,166
|
26,578
|
Current
assets
|
13,841
|
6,366
|
11,485
|
7,676
|
Non-current
assets
|
42,029
|
15,701
|
35,681
|
18,902
|
The
income/expenses of significant transactions are set out in the following table:
|
Consolidated
|
|
2020
|
2019
|
Joint
ventures and associates
|
|
|
Petrobras
Distribuidora (BR)
|
56,516
|
29,384
|
Gas
transportation companies (*)
|
(7,482)
|
(7,387)
|
State-controlled
gas distributors
|
8,759
|
11,088
|
Petrochemical
companies
|
14,010
|
11,533
|
Other
associates and joint ventures
|
1,346
|
755
|
Subtotal
|
73,149
|
45,373
|
Government
entities
|
|
|
Government
bonds
|
206
|
418
|
Banks
controlled by the Brazilian Government
|
(2,370)
|
(2,583)
|
Receivables
from the Electricity sector
|
379
|
1,174
|
Petroleum
and alcohol account - receivables from Brazilian Government
|
1,258
|
35
|
Brazilian
Federal Government (Dividends)
|
(20)
|
(14)
|
Empresa
Brasileira de Administração de Petróleo e Gás Natural – Pré-Sal Petróleo S.A.
– PPSA
|
(692)
|
(440)
|
Others
|
(70)
|
(520)
|
Subtotal
|
(1,309)
|
(1,930)
|
Pension
plans
|
(950)
|
−
|
Total
|
70,890
|
43,443
|
|
|
|
Revenues,
mainly sales revenues
|
82,673
|
55,043
|
Purchases
and services
|
(10,509)
|
(10,364)
|
Operating
income and expenses
|
(497)
|
−
|
Foreign
exchange and inflation indexation charges, net
|
(497)
|
(1,559)
|
Finance
income (expenses), net
|
(280)
|
323
|
Total
|
70,890
|
43,443
|
(*)
Includes TAG results until July 2020, the date on which the company entered into a purchase and sale agreement for its remaining
stake (note 32.2)
The
liability with pension plans of the company's employees and managed by the Petros Foundation, which includes debt instruments,
is presented in note 19.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
39.9.
|
Petroleum
and Alcohol accounts - Receivables from the Brazilian Federal Government
|
Provisional
Measure 2,181, of August 24, 2001, authorized the Federal Union to issue National Treasury bonds in favor of Petrobras in order
to guarantee the payment of any outstanding balance of the Petroleum and Alcohol Account, existing on June 30, 2003. The settlement
of any debit balance may be carried out by the Federal Government, at the discretion of the Ministry of Finance, by offsetting
with other amounts that Petrobras may owe to the Federal Government, at the time of the meeting of accounts, including those related
to taxes or a combination of previous operations.
The
company filed a lawsuit in July 2011 to settle the balance of the oil and alcohol account after a negotiation process between
the parties at the administrative level.
On
November 30, 2020, since there was no longer any possibility of impugnment because the lawsuit had become final, the precatory
was sent to the Federal Regional Court of the 2nd Region, ending the enforcement of the sentence finally due to the action. The
amount of R$ 2,473, on the base date of November 2020, will be monetarily updated until the date of the effective payment by the
Federal Court. The company is expected to receive the amounts in the first half of 2022.
Accordingly,
the company recorded the amount of R$ 1,258 in the financial result, including monetary restatement and interest, of which R$
1,222 arises from the effects of the update relating to the difference between the Reference Rate and the IPCA-E of the outstanding
balance.
As
of December 31, 2020, the updated amount to be reimbursed by the Federal Government is R$ 2,503 (R$ 1,226 as of December 31, 2019),
and is classified in non-current accounts receivable, with no further amounts classified contingent asset in relation to this
process.
.
|
39.10.
|
Key
management personnel
|
Compensation
of key management personnel
Petrobras'
job and salary plan, benefits and benefits plan and specific legislation establish the criteria for all remuneration attributed
by the company to its employees and officers.
The
remunerations of employees, including those occupying managerial functions, and Petrobras directors for the months of December
2020 and 2019 were as follows:
|
In
Reais
|
Compensation
of employees
|
Dec/2020
|
Dec/2019
|
Lowest
compensation
|
3,312.58
|
3,820.07
|
Average
compensation
|
18,647.36
|
19,664.95
|
Highest
compensation
|
97,728.93
|
103,659.27
|
|
|
|
Compensation
of highest paid Petrobras officer
|
116,761.20
|
116,761.20
|
|
The
total compensation of the members of the board of directors and executive board of Petrobras Parent Company is based on the guidelines
established by the Secretariat for Coordination and Governance of State-Owned Companies - SEST, of the Ministry of Economy, and
by the Ministry of Mines and Energy and are presented to follow:
|
Jan-Dec/2020
|
Jan-Dec/2019
|
|
Officers
|
Board
members
|
Total
|
Officers
|
Board
members
|
Total
|
Wages
and short-term benefits
|
14.0
|
0.7
|
14.7
|
11.9
|
0.7
|
12.6
|
Social
security and other employee-related taxes
|
4.8
|
0.1
|
4.9
|
3.8
|
0.1
|
3.9
|
Post-employment
benefits (pension plan)
|
1.1
|
−
|
1.1
|
1.0
|
−
|
1.0
|
Variable
compensation
|
13.0
|
−
|
13.0
|
10.8
|
−
|
10.8
|
Benefits
due to termination of tenure
|
0.6
|
−
|
0.6
|
1.6
|
0.1
|
1.7
|
Total
compensation recognized in the statement of income
|
33.5
|
0.8
|
34.3
|
29.1
|
0.9
|
30.0
|
Total
compensation paid
|
24.6
|
0.8
|
25.4
|
22.4
|
0.9
|
23.3
|
Average
number of members in the period (*)
|
9.00
|
10.00
|
19.00
|
7.67
|
9.75
|
17.42
|
Average
number of paid members in the period (**)
|
9.00
|
4.42
|
13.42
|
7.67
|
5.00
|
12.67
|
|
(*)
Monthly average number of members.
|
(**)
Monthly average number of paid members.
|
In
the year of 2020, the consolidated expense with the total remuneration of directors and board members of the Petrobras System
totaled R$ 70.4 (R$ 84.1 in the year of 2019).
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
On
July 22, 2020, the Annual Shareholders' Meeting set the remuneration of the administrators (Executive Board and Board of Directors)
at up to R$ 43.3 as the global compensation limit to be paid in the period between April 2020 and March 2021. In relation to what
was approved by the Extraordinary General Meeting of 2019, no adjustment in monthly fees was proposed.
The
compensation of the members of the Advisory Committees to the Board of Directors must be considered in addition to the global
compensation limit set for the managers, that is, the amounts perceived are not classified as management compensation.
The
members of the Board of Directors who participate in the Statutory Audit Committee waive the remuneration of the Board Member,
as established in art. 38, § 8 of Decree No. 8,945, of December 27, 2016. These directors were entitled to a total compensation
of R$ 2.2 in fiscal year 2020 (R$ 2.7, considering social charges). As of December 31, 2019, the accumulated remuneration in the
period was R$ 1.7 (R$ 2, considering social charges).
The
Variable Compensation Program of the members of the Executive Board is conditioned to the fulfillment of prerequisites and performance
indicators. The variable remuneration to be paid changes according to the percentage of achievement of the goals and its payment
is deferred in 5 years.
On
December 31, 2020, the company provisioned R$ 13 related to the Performance Award program - PPP 2020.
Exemption
from damage (indemnity)
The
company's bylaws establishes the obligation to indemnify and keep the officers without losses, members with statutory functions
and other employees and agents that legally act through officers’ delegation, so as to cope with certain expenses related
to arbitration, judicial or administrative processes that involve acts performed in the exercise of their duties or powers, since
the date of your possession or the since the beginning of the contractual relation with the Company.
The
first contract coverage period started on December 18, 2018 and continues until the following events occur, whichever happens
last: (i) the end of the 5th (fifth) year after the date on which the Beneficiary leaves, for any reason, to exercise the mandate,
function or position; (ii) the expiry of the period necessary for the final decision of any Process to which the Beneficiary is
a party due to the practice of a Regular Management Act; or (iii) the expiration of the statutory period for events that may generate
the indemnity obligations by the Company, including, but not limited to, the criminal statutory period, even if such term is applied
by administrative authorities. The maximum exposure established by the company (global limit for all possible indemnities) until
March 24 2020 is US$ 500 million.
The
second period of coverage of the contract started on April 25, 2020 and continues until the same types of events occurred as the
first period. The maximum exposure established by the company (global limit for all possible damages) until March 2022 is US$
300 million.
The
indemnity contracts will not cover: (i) acts that have insurance policy coverage contracted by the company, as formally recognized
and implemented by the insurer (ii) there are acts outside the regular exercise of the Beneficiary's duties or powers; (iii) there
is a practice of act in bad faith, fraud, serious guilt or fraud on the part of the Beneficiaries; (iv) there is a practice of
self-interest or of third parties, to the detriment of the company's social interest; (v) there is an obligation to pay indemnities
resulting from social action provided for in article 159 of Law 6.404/76 or the compensation of losses referred to in art. 11,
§ 5, II of Law 6,385 / 76; (vi) other cases in which there is a situation of manifest conflict of interest with the company.
It is worth mentioning that after a final, unappealable decision, if it remains proven that the act performed by the beneficiary
is not subject to indemnity, the beneficiary is obliged to return the amounts advanced to the company. It is worth noting that
Petrobras will have no obligation to indemnify the Beneficiaries for loss of profits, loss of business opportunity, interruption
of professional activity, moral damages or indirect damages.
In
relation to potential conflicts of interest, it is important to mention that the company will hire external professionals, with
an unblemished, impartial and independent reputation, and with robust experience to analyze any claim for damages, in order to
analyze whether or not the act will be subject to coverage. In addition, the coverage beneficiary is prevented from participating
in meetings or discussions regarding the approval of the payment of their own expenses.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
40.
|
Supplemental
information on statement of cash flows
|
|
Consolidated
|
Parent
Company
|
|
2020
|
2019
|
2020
|
2019
|
Amounts
paid/received during the period
|
|
|
|
|
Withholding
income tax paid on behalf of third-parties
|
3,735
|
4,567
|
3,716
|
4,549
|
|
|
|
|
|
Capital
expenditures and financing activities not involving cash
|
|
|
|
|
Purchase
of property, plant and equipment on credit
|
1,672
|
290
|
36,167
|
11,204
|
Lease
|
22,515
|
9,100
|
30,110
|
9,947
|
Provision/(reversals)
for decommissioning costs
|
27,899
|
22,633
|
27,829
|
22,699
|
Use
of deferred tax and judicial deposit for the payment of contingency
|
8
|
14
|
−
|
−
|
Exports
prepaid
|
−
|
−
|
65,751
|
52,935
|
|
|
Mangue
Seco Wind Farm Sale 1, 3 and 4
In
January 2021, Petrobras signed a contract to sell all of its stakes in companies that are part of the company's wind farm complex,
which are classified as held for sale.
Sale
of E&P assets in Espírito Santo (Polo Peroá)
On
January 29, 2021, Petrobras signed a contract for the sale of all of its interests in the Peroá and Cangoá production
fields and in the BM-ES-21 concession, jointly called Polo Peroá and located in the Espírito Santo Basin. The sale
amounted to US$ 55 million, of which (a) US$ 5 million was paid on the date the contract was signed; (b) US$ 7.5 million at the
closing of the transaction and (c) US$ 42.5 million in contingent payments provided for in the contract, related to factors such
as Malombe's declaration of commerciality, future oil prices and extension of the concession terms . The amounts do not consider
the adjustments due until the closing of the transaction, which is subject to the fulfillment of precedent conditions, such as
approval by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
Sale
of Frade Field
On
February 5, 2021, the company finalized the sale of its 30% stake in the Frade field to PetroRio Jaguar Petróleo Ltda.,
a subsidiary of Petro Rio S.A. (PetroRio), which holds the remaining 70%. The transaction also included the sale of the entire
stake held by Petrobras Frade Inversiones S.A. (PFISA), a Petrobras subsidiary, in the company Frade BV to Petrorio Luxembourg,
which now holds 100% of Frade BV.
The
operation was concluded with the payment of US$ 36 million to Petrobras on the date of the closing of the transaction, the amount
resulting from the payments provided for in the contracts and already with the applicable adjustments. This amount adds up to
the amount of US$ 7.5 million paid to Petrobras upon signing the sales contract. In addition, there is an amount of US$ 20 million
contingent on a potential new commercial discovery in the field.
Sale
of Petrobras Uruguay Distribuición S.A. (PUDSA)
On
February 5, 2021, Petrobras Uruguay Sociedad Anónima de Inversiones (PUSAI), an indirect subsidiary of Petrobras, completed
the sale of its entire stake in Petrobras Uruguay Distribución SA (PUDSA), in Uruguay, to Mauruguay SA, a fully indirect
subsidiary of Disa Corporación Petrolífera SA (DISA).
After
all the precedent conditions were met, the transaction was concluded with the payment of US$ 62 million, already with the adjustments
provided for in the contract. The amount received at closing adds up to the amount of US$ 6.17 million paid to PUSAI on the date
of signing the sales contract, totaling US$ 68.17 million.
Sale
of BSBios
On
February 9, 2021, Petrobras Biocombustível SA (PBio) completed the sale of all of its shares (50% of the company's capital)
issued by BSBios Indústria e Comércio de Biodiesel Sul Brasil S/A (BSBios) to the company RP Participações
em Biocombustíveis SA
After
all the precedent conditions were met, the transaction was concluded with the payment of R$ 253 to PBio, already with the adjustments
provided for in the contract. In addition to this amount, R$ 67 is held in a linked account (escrow) for indemnification of eventual
contingencies and released according to terms and conditions set forth in the contract and R$ 2 was received in advance as interest
shareholders’ equity in December 2020, totaling R$ 322.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Sale
of land fields in Bahia
On
February 24, 2021, Petrobras informs that it signed with SPE Miranga S.A., a wholly owned subsidiary of PetroRecôncavo S.A.,
a contract for the sale of its entire interest in nine onshore exploration and production fields, called Polo Cluster, located
in the state of Bahia.
The
total sale value is US$ 135.1 million, of which: (a) US$ 11 million paid on the present date; (b) US$ 44 million at the closing
of the transaction; and (c) US$ 80.1 million deferred in three installments over three years from the closing of the transaction.
The
contract provides for the payment of conditional amounts of up to US$ 85 million, classified as contingent assets, which will
only be recognized when the agreed conditions are met.
The
amounts do not consider the adjustments due until the closing of the transaction, which is subject to the fulfillment of precedent
conditions, such as approval by the ANP.
CDMPI
Merger
On
January 24, 2021, Petrobras' Board of Directors approved the merger of the Companhia de Desenvolvimento e Modernização
de Plantas Industriais (CDMPI). As it involves the merger of a wholly-owned subsidiary, there will be no capital increase in Petrobras
or the issuance of new shares. The shares representing CDMPI's share capital will be extinguished, promoting the necessary accounting
records at Petrobras. The operation is still subject to approval by the General Shareholders' Meeting of Petrobras, to be called
in due course.
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Supplementary
information on Oil and Gas Exploration and Production (unaudited)
This
additional information on the company's oil and gas exploration and production activities has been prepared in accordance with
FASB Coding Topic 932. Items (a) to (c) contain information on historical costs, referring to costs incurred in exploration, acquisition
and development of areas, capitalized costs and results of operations. Items (d) and (e) contain information on the volume of
estimated net proven reserves, the standardized measurement of discounted future net cash flows relating to proven reserves and
changes in estimated discounted future net cash flows.
On
December 31, 2020, the company maintains activities mainly in Brazil, in addition to activities in Argentina, Colombia and Bolivia,
in South America. The information presented regarding equity method invested refers to the operations of the joint venture MP
Gulf of Mexico, LLC (MPGoM), in which Murphy Exploration & Production Company (Murphy) has an 80% interest and Petrobras America
Inc. (PAI ) has a 20% share in the United States of America, North America. The company discloses its reserves in Brazil, the
United States of America and Argentina. Reserves in Bolivia are not disclosed, since the Constitution of this country does not
permit such disclosure. In Colombia, our activities are exploratory, and therefore there are no associated reserves.
a)
Capitalized costs relating to oil and gas producing activities
The
company applies the method of successful efforts in accounting for expenses with exploration and development of oil and natural
gas, according to note 28. Additionally, the accounting practices adopted for the recognition, measurement and disclosure of property,
plant and equipment and intangible assets are described in the notes 25.2 and 26.1.
The
following table summarizes capitalized costs for oil and gas exploration and production activities with the related accumulated
depreciation, depletion and amortization, and asset retirement obligations:
|
Consolidated
|
Equity
Method
Investees
|
|
Brazil
|
Abroad
|
Total
|
|
South
America
|
North
America
|
Others
|
Total
|
December
31, 2020
|
|
|
|
|
|
|
|
Unproved
oil and gas reserves
|
90,623
|
582
|
−
|
−
|
582
|
91,205
|
4,118
|
Proved
oil and gas reserves
|
321,450
|
726
|
−
|
−
|
726
|
322,176
|
|
Support
Equipment
|
380,392
|
3,956
|
−
|
4
|
3,960
|
384,352
|
|
Gross
Capitalized costs
|
792,465
|
5,264
|
−
|
4
|
5,268
|
(218,232)
|
4,118
|
Depreciation,
depletion and amortization
|
(223,500)
|
(3,571)
|
−
|
(4)
|
(3,575)
|
(227,075)
|
(1,644)
|
Net
capitalized costs
|
568,965
|
1,693
|
−
|
−
|
1,693
|
570,658
|
2,474
|
December
31, 2019
|
|
|
|
|
|
|
|
Unproved
oil and gas reserves
|
92,958
|
473
|
−
|
−
|
473
|
93,431
|
−
|
Proved
oil and gas reserves
|
326,739
|
545
|
−
|
−
|
545
|
327,284
|
16,938
|
Support
Equipment
|
355,865
|
2,770
|
−
|
3
|
2,773
|
358,638
|
−
|
Gross
Capitalized costs
|
775,562
|
3,788
|
−
|
3
|
3,791
|
779,353
|
16,938
|
Depreciation,
depletion and amortization
|
(206,905)
|
(2,341)
|
−
|
(3)
|
(2,344)
|
(209,249)
|
(6,810)
|
Net
capitalized costs
|
568,657
|
1,447
|
−
|
−
|
1,447
|
570,104
|
10,128
|
December
31, 2018
|
|
|
|
|
|
|
|
Unproved
oil and gas reserves
|
23,245
|
435
|
−
|
−
|
435
|
23,680
|
15,852
|
Proved
oil and gas reserves
|
343,198
|
559
|
1
|
−
|
560
|
343,758
|
22
|
Support
Equipment
|
324,790
|
2,516
|
−
|
1,508
|
4,024
|
328,814
|
−
|
Gross
Capitalized costs
|
691,233
|
3,510
|
1
|
1,508
|
5,019
|
696,252
|
15,874
|
Depreciation,
depletion and amortization
|
(235,935)
|
(2,107)
|
(1)
|
(113)
|
(2,221)
|
(238,156)
|
(5,464)
|
Net
capitalized costs
|
455,298
|
1,403
|
−
|
1,395
|
2,798
|
458,096
|
10,410
|
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
b)
Costs incurred in acquisition, exploration and development of oil and gas fields
Costs
incurred are summarized below and include both amounts expensed and capitalized:
|
Consolidated
|
Equity
Method
Investees
|
|
Brazil
|
Abroad
|
Total
|
|
South
America
|
North
America
|
Others
|
Total
|
December
31, 2020
|
|
|
|
|
|
|
|
Acquisition
costs:
|
|
|
|
|
|
|
|
Proved
|
1,701
|
−
|
−
|
−
|
−
|
1,701
|
−
|
Unproved
(*)
|
128
|
−
|
−
|
−
|
−
|
128
|
−
|
Exploration
costs
|
4,135
|
53
|
−
|
−
|
53
|
4,188
|
−
|
Development
costs
|
28,627
|
13
|
−
|
−
|
13
|
28,640
|
293
|
Total
|
34,591
|
66
|
−
|
−
|
66
|
34,657
|
293
|
December
31, 2019
|
|
|
|
|
|
|
|
Acquisition
costs:
|
|
|
|
|
|
|
|
Proved
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
Unproved
|
68,612
|
−
|
−
|
−
|
−
|
68,612
|
−
|
Exploration
costs
|
4,259
|
43
|
−
|
−
|
43
|
4,302
|
10
|
Development
costs
|
27,079
|
25
|
−
|
−
|
25
|
27,104
|
590
|
Total
|
99,950
|
68
|
−
|
−
|
68
|
100,018
|
600
|
December
31, 2018
|
|
|
|
|
|
|
|
Acquisition
costs:
|
|
|
|
|
|
|
|
Proved
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
Unproved
|
3,285
|
−
|
−
|
−
|
−
|
3,285
|
−
|
Exploration
costs
|
2,759
|
37
|
2
|
−
|
39
|
2,799
|
18
|
Development
costs
|
35,101
|
118
|
831
|
−
|
949
|
36,050
|
916
|
Total
|
41,145
|
155
|
833
|
−
|
988
|
42,134
|
934
|
(*)
Mainly acquisition of oil exploration rights - Transfer of Rights, according to note 25.3.
|
c)Results
of operations for oil and gas producing activities
The
results of the company's operations related to oil and natural gas production activities for the years ended December 31, 2020,
2019 and 2018 are presented in the table below. The company transfers substantially all of its domestic production of crude oil
and natural gas to its RTM segment in Brazil. The transfer prices calculated using the methodology adopted by the company may
not be indicative of the price that the company could obtain for the product if it were sold in an unregulated spot market. In
addition, prices calculated using this methodology may also not be indicative of future prices to be realized by the company.
The prices adopted for natural gas are those contracted with third parties.
Production
costs are the lifting costs incurred to operate and maintain productive wells and the corresponding equipment and facilities,
which include costs of labor, materials, supplies, fuel consumed in operations and the cost of operating units of natural gas
processing.
Exploration
expenses include the costs of geological and geophysical activities and projects with no economic viability. Depreciation, depletion
and amortization expenses refer to assets used in exploration and development activities. In accordance with SEC Coding Topic
932 - Extraction Activities - Oil and Natural Gas, income tax is based on nominal rates, considering allowable deductions. Financial
and income expenses were not included in the following results.
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
Consolidated
|
Equity
Method
Investees
|
|
Brazil
|
Abroad
|
Total
|
|
South
America
|
North
America
|
Others
|
Total
|
December
31, 2020
|
|
|
|
|
|
|
|
Net
operation revenues
|
|
|
|
|
|
|
|
Sales
to third parties
|
3,936
|
556
|
−
|
−
|
556
|
4,492
|
148
|
Intersegment
|
169,592
|
1
|
−
|
−
|
1
|
169,593
|
−
|
|
173,528
|
557
|
−
|
−
|
557
|
174,085
|
148
|
Production
costs
|
(47,716)
|
(298)
|
−
|
−
|
(298)
|
(48,014)
|
(54)
|
Exploration
expenses
|
(4,134)
|
(36)
|
−
|
−
|
(36)
|
(4,170)
|
−
|
Depreciation,
depletion and amortization
|
(43,783)
|
(260)
|
−
|
−
|
(260)
|
(44,043)
|
(57)
|
Impairment
of oil and gas properties
|
(34,448)
|
−
|
−
|
−
|
−
|
(34,448)
|
−
|
Other
operating expenses
|
(5,500)
|
(10)
|
66
|
(159)
|
(103)
|
(5,603)
|
(158)
|
Results
before income tax expenses
|
37,947
|
(47)
|
66
|
(159)
|
(140)
|
37,807
|
(121)
|
Income
tax expenses
|
(12,901)
|
15
|
(22)
|
54
|
47
|
(12,854)
|
41
|
Results
of operations (excluding corporate
overhead
and interest costs)
|
25,046
|
(32)
|
44
|
(105)
|
(93)
|
24,953
|
(80)
|
December
31, 2019
|
|
|
|
|
|
|
|
Net
operation revenues
|
|
|
|
|
|
|
|
Sales
to third parties
|
3,500
|
684
|
−
|
−
|
684
|
4,184
|
4,353
|
Intersegment
|
195,244
|
1
|
−
|
−
|
1
|
195,245
|
−
|
|
198,744
|
685
|
−
|
−
|
685
|
199,429
|
4,353
|
Production
costs
|
(62,121)
|
(274)
|
−
|
−
|
(274)
|
(62,395)
|
(485)
|
Exploration
expenses
|
(3,174)
|
(23)
|
−
|
−
|
(23)
|
(3,197)
|
(22)
|
Depreciation,
depletion and amortization
|
(45,104)
|
(145)
|
−
|
(50)
|
(195)
|
(45,299)
|
(1,140)
|
Impairment
of oil and gas properties
|
(6,340)
|
−
|
−
|
(1,687)
|
(1,687)
|
(8,027)
|
−
|
Other
operating expenses
|
(5,446)
|
(59)
|
174
|
(145)
|
(30)
|
(5,476)
|
(71)
|
Results
before income tax expenses
|
76,559
|
184
|
174
|
(1,882)
|
(1,524)
|
75,035
|
2,635
|
Income
tax expenses
|
(26,029)
|
(63)
|
(59)
|
640
|
518
|
(25,511)
|
(1,060)
|
Results
of operations (excluding corporate
overhead
and interest costs)
|
50,530
|
121
|
115
|
(1,242)
|
(1,006)
|
49,524
|
1,575
|
December
31, 2018
|
|
|
|
|
|
|
|
Net
operation revenues
|
|
|
|
|
|
|
|
Sales
to third parties
|
4,183
|
698
|
3,682
|
−
|
4,380
|
8,563
|
1,499
|
Intersegment
|
182,982
|
1
|
−
|
−
|
1
|
182,983
|
−
|
|
187,165
|
699
|
3,682
|
−
|
4,381
|
191,546
|
1,499
|
Production
costs
|
(72,111)
|
(283)
|
(560)
|
−
|
(843)
|
(72,954)
|
(162)
|
Exploration
expenses
|
(1,875)
|
(27)
|
(2)
|
−
|
(29)
|
(1,904)
|
(7)
|
Depreciation,
depletion and amortization
|
(31,621)
|
(145)
|
(804)
|
(75)
|
(1,024)
|
(32,645)
|
(433)
|
Impairment
of oil and gas properties
|
(2,573)
|
−
|
(2,775)
|
−
|
(2,775)
|
(5,348)
|
−
|
Other
operating expenses
|
(8,497)
|
(3,227)
|
(340)
|
(147)
|
(3,714)
|
(12,211)
|
(51)
|
Results
before income tax expenses
|
70,488
|
(2,983)
|
(799)
|
(222)
|
(4,004)
|
66,484
|
846
|
Income
tax expenses
|
(23,966)
|
1,014
|
272
|
75
|
1,361
|
(22,605)
|
(618)
|
Results
of operations (excluding corporate
overhead
and interest costs)
|
46,522
|
(1,969)
|
(527)
|
(147)
|
(2,643)
|
43,879
|
228
|
d)
Reserve information
As
presented in note 4.1, the proven reserves of oil and natural gas are the volumes of oil and natural gas that, through analysis
of geoscience and engineering data, can be estimated with reasonable certainty as from a certain date, economically recoverable
from known reservoirs and with the economic conditions, operational techniques and existing government regulations, until the
expiration of the contracts that provide for the right of operation, unless evidence gives reasonable certainty of the renewal.
The hydrocarbon extraction project must have started or there must be reasonable certainty that the project will be started within
a reasonable time. These estimates of oil and natural gas reserves require a high level of judgment and complexity, and influence
different items in the company's financial statements.
The
net proven reserves of oil and natural gas estimated by the company and the corresponding movements for the years of 2020, 2019
and 2018 are shown in the table below. Proved reserves have been estimated in accordance with the Securities and Exchange Commission
definitions of reserves.
Proven
developed oil and gas reserves are proven reserves that can be recovered: (i) through existing wells, equipment and operating
methods or where the cost of necessary equipment is relatively lower compared to the cost of a new well; and (ii) through extraction
equipment installed and infrastructure in operation at the time of estimating reserves, if extraction is done by means that do
not include a well.
In
some cases, there is a need for substantial new investments in additional wells and equipment to recover these proven reserves,
which are called undeveloped proven reserves.
Reserve
estimates are subject to variations due to technical uncertainties in the reservoir and changes in economic scenarios.
The
following tables present a summary of the annual movements in the proven oil reserves (in millions of barrels):
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Proved
developed and undeveloped reserves - Consolidated Entities (*)
|
|
Consolidated
companies
|
Equity
investees
|
|
|
Crude
oil in Brazil
|
Crude
oil in South
America
|
Crude
oil in North
America
|
Synthetic
oil in Brazil
|
Total
consolidated
|
Crude
oil in North
America
|
Crude
oil in Africa
|
Total
|
Reserves
at December 31, 2017 (1)
|
8,249.4
|
1.2
|
114.6
|
6.0
|
8,371.3
|
−
|
63.4
|
8,434.7
|
Transfers
by loss of control (2)
|
−
|
−
|
(100.4)
|
−
|
(100.4)
|
100.4
|
−
|
−
|
Revisions
of previous estimates
|
342.7
|
−
|
−
|
(0.3)
|
342.5
|
(0.9)
|
3.7
|
345.3
|
Extensions
and discoveries
|
308.5
|
0.6
|
−
|
−
|
309.1
|
−
|
−
|
309.1
|
Improved
Recovery
|
224.2
|
−
|
−
|
−
|
224.2
|
−
|
−
|
224.2
|
Sales
of reserves
|
(254.8)
|
−
|
−
|
−
|
(254.8)
|
(80.4)
|
−
|
(335.2)
|
Acquisition
of reserves
|
−
|
−
|
−
|
−
|
−
|
7.9
|
−
|
7.9
|
Production
for the year
|
(701.3)
|
(0.3)
|
(14.3)
|
(0.9)
|
(716.8)
|
(0.4)
|
(7.3)
|
(724.5)
|
Reserves
at December 31, 2018 (1)
|
8,168.7
|
1.6
|
−
|
4.8
|
8,175.1
|
26.6
|
59.8
|
8,261.5
|
Revisions
of previous estimates
|
718.8
|
−
|
−
|
−
|
718.8
|
0.7
|
(6.5)
|
713.0
|
Extensions
and discoveries
|
17.5
|
−
|
−
|
3.6
|
21.1
|
−
|
0.6
|
21.7
|
Sales
of reserves
|
(68.3)
|
−
|
−
|
−
|
(68.3)
|
−
|
−
|
(68.3)
|
Production
for the year
|
(753.9)
|
(0.2)
|
−
|
(0.8)
|
(754.8)
|
(4.7)
|
(12.3)
|
(771.7)
|
Reserves
at December 31, 2019 (1)
|
8,082.8
|
1.4
|
−
|
7.7
|
8,091.9
|
22.7
|
41.6
|
8,156.1
|
Revisions
of previous estimates
|
268.7
|
(0.9)
|
−
|
(6.8)
|
261.0
|
(0.4)
|
−
|
260.7
|
Extensions
and discoveries
|
34.8
|
−
|
−
|
−
|
34.8
|
−
|
−
|
34.8
|
Sales
of reserves
|
(60.8)
|
−
|
−
|
−
|
(60.8)
|
−
|
(41.1)
|
(101.8)
|
Production
for the year
|
(791.7)
|
(0.2)
|
−
|
(0.9)
|
(792.8)
|
(4.2)
|
(0.5)
|
(797.5)
|
Reserves
at December 31, 2020
|
7,533.9
|
0.3
|
−
|
−
|
7,534.2
|
18.1
|
−
|
7,552.3
|
(1)
In 2017, total proved reserves include 263.7 million barrels of assets held for sale. In 2018, total proved reserves include
59.8 million barrels of assets held for sale (PO&G). In 2019, total proved reserves include 41.6 million barrels of assets
held for sale (PO&G).
|
(2)
Amounts transferred from consolidated entities to equity method investees due to the transaction that resulted in the formation
of a joint venture with an 80% interest in Murphy Exploration & Production Company (“Murphy”) and 20% in Petrobras
America Inc (“PAI”).
|
(*)
Apparent differences in the sum of the numbers are due to rounding off.
|
A
summary of the annual changes in the proved reserves of natural gas is as follows (in billions of cubic feet):
Proved
developed and undeveloped reserves (*)
|
|
Consolidated
companies
|
Equity
method investees
|
|
|
Natural
gas in Brazil
|
Natural
gas in South
America
|
Natural
gas in North
America
|
Synthetic
gas in Brazil
|
Total
consolidated
|
Natural
gas in North
America
|
Natural
gas in Africa
|
Total
|
Reserves
at December 31, 2017 (1)
|
7,676.1
|
160.2
|
40.9
|
8.1
|
7,885.3
|
−
|
17.3
|
7,902.6
|
Transfers
by loss of control (2)
|
−
|
−
|
(36.8)
|
−
|
(36.8)
|
36.8
|
−
|
−
|
Revisions
of previous estimates
|
737.2
|
−
|
−
|
(1.0)
|
736.2
|
(3.1)
|
34.8
|
768.0
|
Extensions
and discoveries
|
136.8
|
70.1
|
−
|
−
|
206.9
|
−
|
−
|
206.9
|
Improved
Recovery
|
207.6
|
−
|
−
|
−
|
207.6
|
−
|
−
|
207.6
|
Sales
of reserves
|
(165.5)
|
−
|
−
|
−
|
(165.5)
|
(29.7)
|
−
|
(195.2)
|
Acquisition
of reserves
|
−
|
−
|
−
|
−
|
−
|
6.9
|
−
|
6.9
|
Production
for the year
|
(801.8)
|
(16.2)
|
(4.1)
|
(1.3)
|
(823.5)
|
(0.1)
|
(4.8)
|
(828.4)
|
Reserves
at December 31, 2018 (1)
|
7,790.5
|
214.1
|
−
|
5.7
|
8,010.3
|
10.8
|
47.3
|
8,068.5
|
Revisions
of previous estimates
|
1,415.7
|
(42.3)
|
−
|
−
|
1,373.4
|
0.1
|
10.9
|
1,384.4
|
Extensions
and discoveries
|
15.3
|
−
|
−
|
7.6
|
22.9
|
−
|
0.3
|
23.2
|
Improved
Recovery
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
Sales
of reserves
|
(24.0)
|
−
|
−
|
−
|
(24.0)
|
−
|
−
|
(24.0)
|
Production
for the year
|
(816.9)
|
(15.5)
|
−
|
(1.2)
|
(833.7)
|
(1.7)
|
(11.3)
|
(846.7)
|
Reserves
at December 31, 2019 (1)
|
8,380.6
|
156.3
|
−
|
12.1
|
8,549.0
|
9.2
|
47.2
|
8,605.4
|
Revisions
of previous estimates
|
(92.5)
|
(118.7)
|
−
|
(10.8)
|
(221.9)
|
0.2
|
−
|
(221.7)
|
Extensions
and discoveries
|
36.0
|
−
|
−
|
−
|
36.0
|
−
|
−
|
36.0
|
Improved
Recovery
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
Sales
of reserves
|
(42.3)
|
−
|
−
|
−
|
(42.3)
|
−
|
(47.2)
|
(89.5)
|
Production
for the year
|
(735.2)
|
(12.0)
|
−
|
(1.4)
|
(748.5)
|
(1.6)
|
−
|
(750.1)
|
Reserves
at December 31, 2020
|
7,546.7
|
25.6
|
−
|
−
|
7,572.3
|
7.8
|
−
|
7,580.1
|
(1)
In 2017, total proved reserves include 173.7 billion cubic feet of assets held for sale. In 2018, the total of proven reserves
includes the value of 47.3 billion cubic feet referring to assets held for sale (PO&G). In 2019, the total of proven reserves
includes the value of 47.2 billion cubic feet referring to assets held for sale (PO&G).
|
(2)
Amounts transferred from consolidated entities to equity method investees due to the transaction that resulted in the formation
of a joint venture with an 80% interest in Murphy Exploration & Production Company (“Murphy”) and 20% in Petrobras
America Inc (“PAI”).
|
(*)
Apparent differences in the sum of the numbers are due to rounding off.
|
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
The
production of natural gas presented in these tables is the volume extracted from our proven reserves, including gas consumed in
operations and excluding reinjected gas. Our disclosed proven gas reserves include volumes of gas consumed, which represent 30%
of our total proven natural gas reserve in 2020.
The
tables below summarize information about changes in proven oil and gas reserves, in millions of barrels of oil equivalent, from
our consolidated and equity-invested entities for 2020, 2019 and 2018:
Proved
developed and undeveloped reserves (*)
|
|
Consolidated
companies
|
Equity
method investees
|
|
|
Oil
equivalent in Brazil
|
Oil
equivalent in South America
|
Oil
equivalent in North America
|
Oil
synthetic equivalent in Brazil
|
Total
consolidated
|
Oil
equivalent in North America
|
Oil
equivalent in Africa
|
Total
|
Reserves
at December 31, 2017 (1)
|
9,528.8
|
27.9
|
121.5
|
7.4
|
9,685.5
|
−
|
66.3
|
9,751.7
|
Transfers
by loss of control (2)
|
−
|
−
|
(106.5)
|
−
|
(106.5)
|
106.5
|
−
|
−
|
Revisions
of previous estimates
|
465.6
|
−
|
−
|
(0.4)
|
465.2
|
(1.4)
|
9.6
|
473.3
|
Extensions
and discoveries
|
331.3
|
12.3
|
−
|
−
|
343.6
|
−
|
−
|
343.6
|
Improved
Recovery
|
258.8
|
−
|
−
|
−
|
258.8
|
−
|
−
|
258.8
|
Sales
of reserves
|
(282.4)
|
−
|
−
|
−
|
(282.4)
|
(85.4)
|
−
|
(367.8)
|
Acquisition
of reserves
|
−
|
−
|
−
|
−
|
−
|
9.1
|
−
|
9.1
|
Production
for the year
|
(834.9)
|
(3.0)
|
(15.0)
|
(1.2)
|
(854.0)
|
(0.5)
|
(8.1)
|
(862.6)
|
Reserves
at December 31, 2018 (1)
|
9,467.1
|
37.2
|
−
|
5.8
|
9,510.1
|
28.4
|
67.7
|
9,606.2
|
Revisions
of previous estimates
|
954.7
|
(7.0)
|
−
|
−
|
947.7
|
0.7
|
(4.7)
|
943.7
|
Extensions
and discoveries
|
20.1
|
−
|
−
|
4.9
|
25.0
|
−
|
0.6
|
25.6
|
Sales
of reserves
|
(72.3)
|
−
|
−
|
−
|
(72.3)
|
−
|
−
|
(72.3)
|
Production
for the year
|
(890.0)
|
(2.8)
|
−
|
(1.0)
|
(893.8)
|
(4.9)
|
(14.1)
|
(912.8)
|
Reserves
at December 31, 2019 (1)
|
9,479.6
|
27.4
|
−
|
9.7
|
9,516.7
|
24.2
|
49.5
|
9,590.4
|
Revisions
of previous estimates
|
253.3
|
(20.6)
|
−
|
(8.6)
|
224.1
|
(0.3)
|
−
|
223.7
|
Extensions
and discoveries
|
40.8
|
−
|
−
|
−
|
40.8
|
−
|
−
|
40.8
|
Improved
Recovery
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
Sales
of reserves
|
(67.8)
|
−
|
−
|
−
|
(67.8)
|
−
|
(49.0)
|
(116.8)
|
Production
for the year
|
(914.2)
|
(2.2)
|
−
|
(1.2)
|
(917.6)
|
(4.5)
|
(0.5)
|
(922.5)
|
Reserves
at December 31, 2020
|
8,791.7
|
4.6
|
−
|
−
|
8,796.3
|
19.4
|
−
|
8,815.7
|
(1)
In 2017, the total proved reserves include 292.7 million barrels of oil equivalent referring to assets held for sale. In 2018,
the total of proven reserves includes the value of 67.7 million barrels of oil equivalent referring to assets held for sale
(PO&G). In 2019, the total of proven reserves includes the value of 49.5 million barrels of oil equivalent referring to
assets held for sale (PO&G).
|
(2)
Amounts transferred from consolidated entities to equity method investees due to the transaction that resulted in the formation
of a joint venture with an 80% interest in Murphy Exploration & Production Company (“Murphy”) and 20% in Petrobras
America Inc (“PAI”).
|
(*)
Apparent differences in the sum of the numbers are due to rounding off.
|
In
2020, we incorporated 223.7 million boe of reserves proved by revisions of previous estimates, composed of:
(i)
addition of 637.1 million boe due to technical reviews, mainly associated with the good performance and the greater production
history of the Santos Basin pre-salt reservoirs;
(ii)
addition of 253.9 million boe due to the approval of new projects, mainly in the Santos and Campos Basins; and
(iii)
reduction of 667.2 million boe due to economic revisions, mainly due to the price reduction.
We
also incorporated 40.8 million boe into our proved reserves due to discoveries and extensions, in the Santos Basin pre-salt, and
reduced 116.8 million boe due to proven reserve sales.
The
company's total proven reserve in 2020 resulted in 8,815.7 million boe, considering the incorporations, reviews and sales described
above and discounting the production of 922.5 million boe in 2020. This production refers to volumes that were included in our
reserves and, therefore, does not consider liquid natural gas, since the reserve is estimated at a reference point prior to gas
processing, except in the United States and Argentina. The production also does not consider volumes of injected gas, the production
of long-term tests in exploratory blocks and production in Bolivia, since the Bolivian Constitution does not allow the disclosure
of reserves.
In
2019, we incorporated 943.7 million boe of reserves proved by revisions of previous estimates, composed of:
(i)
addition of 529.1 million boe due to technical reviews, mainly associated with good performance and the greater production history
of pre-salt reservoirs in the pre-salt of Santos Basin;
(ii)
addition of 266.8 million boe referring to contractual revisions, including the reallocation of volumes due to the revision of
the Transfer of Rights contract, and the extension of concession contracts in Brazil;
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
(iii)
addition of 242.6 million boe due to the approval of new projects in the Santos, Campos and Espírito Santo Basins; and
(iv)
a 94.8 million boe reduction due to economic revisions, mainly due to the price reduction.
We
also incorporated 25.6 million boe into our proved reserves due to discoveries and extensions, mainly in the Santos Basin pre-salt,
and reduced 72.3 million boe from our proven reserves due to proven reserve sales.
Considering
the production of 912.8 million boe in 2019 and the variations above, the company's total proven reserve resulted in 9,590.4 million
boe in 2019. Production refers to volumes that were included in our reserves and, therefore, does not consider natural gas liquids,
since the reserve is estimated at a reference point prior to gas processing, except in the United States and Argentina. The production
also does not consider volumes of injected gas, the production of long-term tests in exploratory blocks and production in Bolivia,
since the Bolivian Constitution does not allow the disclosure of reserves.
In
2018, we incorporated 473.3 million boe of reserves proved by revisions to previous estimates, of which 233.5 million boe due
to economic revisions, mainly due to the price increase, and 239.9 million boe mainly due to revisions techniques, due to the
good performance of the pre-salt reservoirs in the Santos and Campos basins, both in Brazil. In addition, we incorporated 258.8
million boe into our proved reserves resulting from positive responses to supplemental recovery (water injection) and 343.6 million
boe into our proven reserves due to discoveries and extensions, mainly in the pre-salt of the Santos Basin.
We
reduced 367.8 million boe from our proved reserves due to the sale of reserves and increased 9.1 million in our proved reserves
due to reserve purchases, resulting in a net reduction effect of 358.7 million boe on our proved reserves due to buying and selling.
Considering
the production of 862.6 million boe in 2018 and the variations above, the company's total proven reserve resulted in 9,606.2 million
boe. This production of 862.6 million boe refers to volumes that were included in our reserves and, therefore, does not consider
liquids of natural gas (except in North America), since the reserve is estimated at a reference point prior to the gas processing,
and also does not consider the production of long-term tests in exploratory blocks and production in Bolivia, since the Bolivian
Constitution prohibits the disclosure and registration of reserves.
The
following tables show the volumes of proved developed and undeveloped reserves, net, that is, reflecting Petrobras' participation:
|
2018
|
|
Crude
Oil
|
Synthetic
Oil (mmbbl)
|
Natural
Gas
|
Synthetic
Gas (bncf)
|
Total
oil and gas
|
|
|
|
|
|
(mmboe)
|
Net
proved developed reserves (*):
|
|
|
|
|
|
Consolidated
Entities
|
|
|
|
|
|
Brazil
|
4,339.5
|
4.8
|
4,807.0
|
5.7
|
5,146.4
|
South
America, outside Brazil
|
1.0
|
−
|
83.5
|
−
|
15.0
|
Total
Consolidated Entities
|
4,340.5
|
4.8
|
4,890.5
|
5.7
|
5,161.4
|
North
America (2)
|
20.0
|
−
|
8.3
|
−
|
21.4
|
Africa
|
30.9
|
−
|
27.6
|
−
|
35.5
|
Total
Equity Method Investees
|
51.0
|
−
|
35.9
|
−
|
56.9
|
Total
Consolidated and Equity Method Investees (1)
|
4,391.5
|
4.8
|
4,926.4
|
5.7
|
5,218.3
|
Net
proved undeveloped reserves (*):
|
|
|
|
|
|
Consolidated
Entities
|
|
|
|
|
|
Brazil
|
3,829.2
|
−
|
2,983.5
|
−
|
4,326.4
|
South
America, outside Brazil
|
0.5
|
−
|
130.6
|
−
|
22.3
|
Total
Consolidated Entities
|
3,829.7
|
−
|
3,114.1
|
−
|
4,348.7
|
Equity
Method Investees
|
|
|
|
|
|
North
America (2)
|
6.5
|
-
|
2.5
|
-
|
6.9
|
Africa
|
28.9
|
−
|
19.7
|
−
|
32.2
|
Total
Equity Method Investees
|
35.4
|
−
|
22.2
|
−
|
39.1
|
Total
Consolidated and Equity Method Investees (1)
|
3,865.1
|
−
|
3,136.3
|
−
|
4,387.9
|
Total
proved reserves (developed and undeveloped)
|
8,256.6
|
4.8
|
8,062.7
|
5.7
|
9,606.2
|
(1)
Includes values referring to assets held for sale (30.9 million barrels of oil and 27.6 billion cubic feet of natural
gas in developed proved reserves and 28.9 million barrels of oil and 19.7 billion cubic feet of natural gas in undeveloped proven
reserves) in Africa (PO&G).
(2)
North American oil reserves include volumes of liquid natural gas, representing 4.2% of developed reserves and 3.6% of undeveloped
reserves.
(*)
Apparent differences in the sum of the numbers are due to rounding off.
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
2019
|
|
Crude
Oil
|
Synthetic
Oil (mmbbl)
|
Natural
Gas
|
Synthetic
Gas (bncf)
|
Total
oil and gas
|
|
|
|
|
|
(mmboe)
|
Net
proved developed reserves (*):
|
|
|
|
|
|
Consolidated
Entities
|
|
|
|
|
|
Brazil
|
4,999.1
|
7.7
|
5,715.6
|
12.1
|
5,961.4
|
South
America, outside Brazil (2)
|
0.9
|
−
|
66.9
|
−
|
12.1
|
Total
Consolidated Entities
|
5,000.0
|
7.7
|
5,782.5
|
12.1
|
5,973.5
|
Equity
Method Investees
|
|
|
|
|
|
North America
(2)
|
18.2
|
−
|
7.0
|
−
|
19.4
|
Africa
|
37.1
|
−
|
44.7
|
−
|
44.6
|
Total
Equity Method Investees
|
55.3
|
−
|
51.7
|
−
|
64.0
|
Total
Consolidated and Equity Method Investees (1)
|
5,055.3
|
7.7
|
5,834.3
|
12.1
|
6,037.4
|
Net
proved undeveloped reserves (*):
|
|
|
|
|
|
Consolidated
Entities
|
|
|
|
|
|
Brazil
|
3,083.7
|
−
|
2,665.0
|
−
|
3,527.9
|
South
America, outside Brazil (2)
|
0.5
|
−
|
89.3
|
−
|
15.4
|
Total
Consolidated Entities
|
3,084.2
|
−
|
2,754.3
|
−
|
3,543.3
|
Equity
Method Investees
|
|
|
|
|
|
North America
(2)
|
4.4
|
−
|
2.2
|
−
|
4.8
|
Africa
|
4.5
|
−
|
2.4
|
−
|
4.9
|
Total
Equity Method Investees
|
8.9
|
−
|
4.6
|
−
|
9.7
|
Total
Consolidated and Equity Method Investees (1)
|
3,093.1
|
−
|
2,759.0
|
−
|
3,552.9
|
Total
proved reserves (developed and undeveloped)
|
8,148.4
|
7.7
|
8,593.2
|
12.1
|
9,590.4
|
(1)
Includes values referring to assets held for sale (37.1 million barrels of oil and 44.7 billion cubic feet of natural
gas in developed proved reserves and 4.5 million barrels of oil and 2.4 billion cubic feet of natural gas in undeveloped proven
reserves) in Africa (PO&G).
(2)
Oil reserves in South America include volumes of liquid natural gas, representing 20.3% in developed reserves and 52.9% in undeveloped
reserves. North American oil reserves include volumes of liquid natural gas, representing 3.8% of developed reserves and 5.3%
of undeveloped reserves.
(*) Apparent differences
in the sum of the numbers are due to rounding off.
|
|
|
|
2020
|
|
Crude Oil
|
Synthetic Oil
|
Natural gas
|
Synthetic Gas
|
Total oil and gas
|
|
(mmbbl)
|
(bncf)
|
(mmboe)
|
Net proved developed reserves (*):
|
|
|
|
|
|
Consolidated Entities
|
|
|
|
|
|
Brazil
|
4,857.6
|
−
|
5,713.9
|
−
|
5,809.9
|
South America, outside Brazil (1)
|
0.3
|
−
|
−
|
−
|
−
|
Total Consolidated Entities
|
4,857.9
|
−
|
5,739.5
|
−
|
5,814.5
|
Equity Method Investees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America (1)
|
16.9
|
−
|
7.2
|
−
|
18.1
|
Total Equity Method Investees
|
16.9
|
−
|
7.2
|
−
|
18.1
|
Total Consolidated and Equity Method Investees (1)
|
4,874.8
|
−
|
5,746.7
|
−
|
5,832.6
|
Net proved undeveloped reserves (*):
|
|
|
|
|
|
Consolidated Entities
|
|
|
|
|
|
Brazil
|
2,676.3
|
−
|
1,832.8
|
−
|
2,981.8
|
Total Consolidated Entities
|
2,676.3
|
−
|
1,832.8
|
−
|
2,981.8
|
Equity Method Investees
|
|
|
|
|
|
North America (1)
|
1.2
|
−
|
0.6
|
−
|
1.3
|
Total Equity Method Investees
|
1.2
|
−
|
0.6
|
−
|
1.3
|
Total Consolidated and Equity Method Investees (1)
|
2,677.5
|
−
|
1,833.4
|
−
|
2,983.1
|
Total proved reserves (developed and undeveloped)
|
7,552.3
|
−
|
7,580.1
|
−
|
8,815.7
|
(1) South American oil reserves include volumes of liquid natural gas, representing 21.3% of developed reserves. North American oil reserves include volumes of liquid natural gas, representing 6.3% of developed reserves and 5.3% of undeveloped reserves.
|
(*) Apparent differences in the sum of the numbers are due to rounding off.
|
e)
Standardized measure of discounted future net cash flows relating to proved oil and gas quantities and changes therein
The
standardized measurement of discounted future net cash flows, referring to the proven oil and natural gas reserves mentioned above,
is made in accordance with SEC Coding Topic 932 - Extraction Activities - Oil and Natural Gas.
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Estimates
of future cash inflows from production are calculated by applying the average price during the 12-month period prior to the closing
date, determined as an unweighted arithmetic average of the first price of each month within that period, unless the prices defined
by contractual agreements, excluding indexes based on future conditions. Changes in future prices are limited to the variations
provided for in existing contracts at the end of each year. The future costs of development and production correspond to the estimated
future expenditures necessary to develop and extract the proved reserves estimated at the end of the year based on cost indications
at the end of the year, based on the continuity of economic conditions at the end of the year. The estimated future income tax
is calculated using the official rates in force at the end of the year. In Brazil, together with the income tax, future social
contributions are included. The amounts presented as future income tax expenses include allowable deductions, to which the official
rates apply. Net discounted future cash flows are calculated using 10% discount factors, applied in the middle of the year. This
discounted future cash flow requires estimates of when future expenditures will be incurred and when reserves will be extracted,
year by year.
The
assessment determined by the SEC's Coding Topic 932 requires the adoption of assumptions regarding the timing and the value of
future development and production costs. The calculations are made on December 31 of each year and should not be used as indicative
of Petrobras' future cash flows or the value of its oil and natural gas reserves.
Information
regarding the standardized measurement of discounted future net cash flows is presented originally in US dollars on the SEC's
Form 20-F and has been translated into reais for presentation in these Financial Statements. Thus, in order to maintain consistency
with the criteria used in the measurement of estimates of future cash inflows, as described above, the exchange rate used for
the conversion of each period is based on the average quotation of the US dollar during the period 12 months prior to the closing
date, determined as an unweighted arithmetic average of the quotation on the first business day of each month within that period.
Exchange variations resulting from this conversion are shown as an accumulated translation adjustment in the flow movement tables,
as follows.
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Discounted
net future cash flows:
|
Consolidated
|
|
|
|
Brazil
|
Abroad
|
Total
|
Equity
Method
Investees
(2)
|
|
|
South
America
|
North
America
|
Total
Abroad
|
|
December
31, 2020
|
|
|
|
|
|
|
|
Future
cash inflows
|
1,710,895
|
353
|
−
|
353
|
1,711,248
|
3,426
|
|
Future
production costs
|
(937,130)
|
(261)
|
−
|
(261)
|
(937,391)
|
(2,385)
|
|
Future
development costs
|
(160,363)
|
(84)
|
−
|
(84)
|
(160,447)
|
(248)
|
|
Future
income tax expenses
|
(240,591)
|
−
|
−
|
−
|
(240,591)
|
(406)
|
|
Undiscounted
future net cash flows
|
372,811
|
8
|
−
|
8
|
372,819
|
387
|
|
10
percent midyear annual discount for timing of estimated cash flows (1)
|
(136,761)
|
(1)
|
−
|
(1)
|
(136,762)
|
(6)
|
|
Standardized
measure of discounted future net cash flows
|
236,050
|
8
|
−
|
8
|
236,058
|
380
|
|
|
|
|
|
|
|
|
|
December
31, 2019
|
|
|
|
|
|
|
|
Future
cash inflows
|
2,108,808
|
2,395
|
−
|
2,395
|
2,111,203
|
15,919
|
|
Future
production costs
|
(1,072,063)
|
(1,121)
|
−
|
(1,121)
|
(1,073,184)
|
(5,309)
|
|
Future
development costs
|
(135,183)
|
(554)
|
−
|
(554)
|
(135,737)
|
(2,026)
|
|
Future
income tax expenses
|
(338,536)
|
(124)
|
−
|
(124)
|
(338,660)
|
(1,722)
|
|
Undiscounted
future net cash flows
|
563,026
|
596
|
−
|
596
|
563,622
|
6,862
|
|
10
percent midyear annual discount for timing of estimated cash flows (1)
|
(216,190)
|
(325)
|
−
|
(325)
|
(216,515)
|
(1,305)
|
|
Standardized
measure of discounted future net cash flows
|
346,836
|
271
|
−
|
271
|
347,107
|
5,557
|
|
|
|
|
|
|
|
|
|
December
31, 2018
|
|
|
|
|
|
|
|
Future
cash inflows
|
2,188,096
|
4,044
|
-
|
4,044
|
2,192,140
|
22,235
|
|
Future
production costs
|
(981,563)
|
(1,544)
|
-
|
(1,544)
|
(983,107)
|
(5,851)
|
|
Future
development costs
|
(124,063)
|
(792)
|
-
|
(792)
|
(124,855)
|
(1,925)
|
|
Future
income tax expenses
|
(405,518)
|
(330)
|
-
|
(330)
|
(405,848)
|
(3,709)
|
|
Undiscounted
future net cash flows
|
676,952
|
1,378
|
-
|
1,378
|
678,330
|
10,749
|
|
10
percent midyear annual discount for timing of estimated cash flows (1)
|
(272,896)
|
(707)
|
-
|
(707)
|
(273,603)
|
(2,271)
|
|
Standardized
measure of discounted future net cash flows
|
404,056
|
671
|
-
|
671
|
404,727
|
8,478
|
|
(1)
Semiannual capitalization
|
(2)
Includes the amount of R$ 6,090 related to PO&G assets classified as held for sale in 2018. Includes the amount of R$
4,119 related to PO&G assets classified as held for sale in 2019.
|
Apparent
differences in the sum of the numbers are due to rounding off.
|
Changes
in discounted net future cash flows:
|
Consolidated
|
|
|
Brazil
(1)
|
Abroad
|
Total
|
Equity
Method
Investees
(2)
|
|
South
America
|
North
America
|
Total
abroad
|
Balance
at January 1, 2020
|
346,836
|
271
|
−
|
271
|
347,107
|
5,556
|
Sales
and transfers of oil and gas, net of production cost
|
(125,812)
|
(72)
|
−
|
(72)
|
(125,884)
|
(483)
|
Development
cost incurred
|
28,627
|
13
|
−
|
13
|
28,640
|
293
|
Net
change due to purchases and sales of minerals in place
|
(4,346)
|
−
|
−
|
−
|
(4,346)
|
(5,373)
|
Net
change due to extensions, discoveries and improved recovery, less related costs
|
2,614
|
−
|
−
|
−
|
2,614
|
−
|
Revisions
of previous quantity estimates
|
16,225
|
(181)
|
−
|
(181)
|
16,044
|
(51)
|
Net
change in prices, transfer prices and in production costs
|
(280,348)
|
(743)
|
−
|
(743)
|
(281,091)
|
(1,927)
|
Changes
in estimated future development costs
|
(24,211)
|
500
|
−
|
500
|
(23,711)
|
345
|
Accretion
of discount
|
34,684
|
48
|
−
|
48
|
34,731
|
59
|
Net
change in income taxes
|
127,263
|
124
|
−
|
124
|
127,387
|
262
|
Other
– unspecified
|
−
|
(36)
|
−
|
(36)
|
(36)
|
8
|
Cumulative
translation adjustments
|
114,518
|
83
|
−
|
83
|
114,601
|
1,691
|
Balance
at December 31, 2020
|
236,050
|
8
|
−
|
8
|
236,058
|
380
|
Balance
at January 1, 2019
|
404,057
|
671
|
−
|
671
|
404,728
|
8,478
|
Sales
and transfers of oil and gas, net of production cost
|
(136,564)
|
(256)
|
−
|
(256)
|
(136,822)
|
(3,117)
|
Development
cost incurred
|
27,079
|
25
|
−
|
25
|
27,104
|
590
|
Net
change due to purchases and sales of minerals in place
|
(5,460)
|
−
|
−
|
−
|
(5,460)
|
−
|
Net
change due to extensions, discoveries and improved recovery, less related costs
|
1,515
|
−
|
−
|
−
|
1,515
|
−
|
Revisions
of previous quantity estimates
|
72,093
|
(173)
|
−
|
(173)
|
71,920
|
32
|
Net
change in prices, transfer prices and in production costs
|
(134,269)
|
(572)
|
−
|
(572)
|
(134,840)
|
(1,988)
|
Changes
in estimated future development costs
|
(20,956)
|
234
|
−
|
234
|
(20,722)
|
(383)
|
Accretion
of discount
|
40,406
|
98
|
−
|
98
|
40,504
|
959
|
Net
change in income taxes
|
61,851
|
161
|
−
|
161
|
62,012
|
1,430
|
Other
– unspecified
|
−
|
27
|
−
|
27
|
27
|
(979)
|
Cumulative
translation adjustments
|
37,084
|
55
|
−
|
55
|
37,140
|
533
|
Balance
at December 31, 2019
|
346,836
|
271
|
−
|
271
|
347,107
|
5,556
|
Balance
at January 1, 2018
|
203,220
|
404
|
5,196
|
5,599
|
208,819
|
4,127
|
Transfers
due to loss of control (3)
|
−
|
−
|
(5,191)
|
(5,191)
|
(5,191)
|
5,547
|
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Sales
and transfers of oil and gas, net of production cost
|
(114,976)
|
(278)
|
(3,069)
|
(3,347)
|
(118,323)
|
(1,346)
|
Development
cost incurred
|
35,101
|
118
|
831
|
949
|
36,050
|
916
|
Net
change due to purchases and sales of minerals in place
|
(17,357)
|
−
|
−
|
−
|
(17,357)
|
(6,877)
|
Net
change due to extensions, discoveries and improved recovery, less related costs
|
41,030
|
447
|
−
|
447
|
41,477
|
−
|
Revisions
of previous quantity estimates
|
38,866
|
−
|
−
|
−
|
38,866
|
169
|
Net
change in prices, transfer prices and in production costs
|
264,214
|
161
|
1,392
|
1,553
|
265,767
|
6,614
|
Changes
in estimated future development costs
|
6,753
|
(275)
|
(429)
|
(704)
|
6,049
|
(339)
|
Accretion
of discount
|
20,322
|
68
|
545
|
613
|
20,935
|
470
|
Net
change in income taxes
|
(105,122)
|
(14)
|
−
|
(14)
|
(105,136)
|
(1,814)
|
Other
– unspecified
|
−
|
(16)
|
−
|
(16)
|
(16)
|
433
|
Cumulative
translation adjustments
|
32,006
|
56
|
725
|
781
|
32,787
|
576
|
Balance
at December 31, 2018
|
404,057
|
671
|
−
|
671
|
404,728
|
8,478
|
(1)
Includes the amount of R$ 5,649 related to assets classified as held for sale in 2017 (January 2018).
|
(2)
Includes the amount of R$ 6,090 related to PO&G assets classified as held for sale in 2018. Includes the amount of R$
4,119 related to PO&G assets classified as held for sale in 2019.
|
(3)
Amounts transferred from consolidated entities to equity method investees, as the Company concluded the operation that has
resulted in the formation of a joint venture company ("JV"), of which Murphy Exploration & Production Company
("Murphy" ) has 80% stake and Petrobras America Inc ("PAI") 20% stake.
|
Apparent
differences in the sum of the numbers are due to rounding off.
|
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Social
Balance (unaudited)
|
Consolidated
|
1-
Calculation basis
|
2020
|
2019
|
Consolidated
sales revenues (SR)
|
|
|
272,069
|
|
|
302,245
|
Consolidated
net income (loss) before profit sharing and taxes (OI)
|
|
|
37
|
|
|
47,242
|
Consolidated
gross payroll (GP) (i)
|
|
|
34,129
|
|
|
33,073
|
|
|
|
|
|
|
|
|
|
%
of
|
|
%
of
|
2
- Internal Social Indicators
|
Amount
|
GP
|
SR
|
Amount
|
GP
|
SR
|
Meal
and food
|
990
|
2.90
|
0.36
|
1,013
|
3.06
|
0.34
|
Compulsory
payroll charges
|
5,018
|
14.70
|
1.84
|
5,644
|
17.07
|
1.87
|
Pension
|
4,800
|
14.06
|
1.76
|
6,750
|
20.41
|
2.23
|
Health
Care
|
2,233
|
6.54
|
0.82
|
2,389
|
7.22
|
0.79
|
Health
and Safety
|
139
|
0.41
|
0.05
|
192
|
0.58
|
0.06
|
Education
|
315
|
0.92
|
0.12
|
316
|
0.96
|
0.10
|
Culture
|
8
|
0.02
|
−
|
12
|
0.04
|
−
|
Professional
training and development
|
31
|
0.09
|
0.01
|
193
|
0.58
|
0.06
|
Day-care
assistance
|
31
|
0.09
|
0.01
|
37
|
0.11
|
0.01
|
Profit
sharing and Variable compensation program
|
2,271
|
6.65
|
0.83
|
2,722
|
8.23
|
0.90
|
Benefits
granted to full-time employees that are not offered to temporary or part-time employees (I)
|
−
|
−
|
−
|
−
|
−
|
−
|
Others
|
206
|
0.60
|
0.08
|
114
|
0.34
|
0.04
|
Total
- Internal social indicators
|
16,042
|
47.00
|
5.90
|
19,382
|
58.60
|
6.41
|
|
|
|
|
|
|
|
|
|
%
of
|
|
%
of
|
3
- External Social Indicators
|
Amount
|
OI
|
SR
|
Amount
|
OI
|
SR
|
Social
and environmental (II)
|
89
|
240.54
|
0.03
|
116
|
0.24
|
0.04
|
Culture
|
18
|
48.65
|
0.01
|
37
|
0.08
|
0.01
|
Sport
|
5
|
13.51
|
−
|
71
|
0.15
|
0.02
|
Technology
and Innovation
|
8
|
21.62
|
−
|
13
|
0.03
|
−
|
Donations
(III)
|
26
|
70.27
|
0.01
|
1
|
−
|
−
|
Total
contributions for the community
|
146
|
394.59
|
0.05
|
238
|
0.50
|
0.08
|
Taxes
(excluding payroll charges)
|
91,821
|
248,164.15
|
33.75
|
114,090
|
241.50
|
37.75
|
Total
- External social indicators
|
91,967
|
248,558.74
|
33.80
|
114,328
|
242.00
|
37.83
|
|
|
|
|
|
|
|
|
|
%
of
|
|
%
of
|
4
- Environmental Indicators
|
Amount
|
OI
|
SR
|
Amount
|
OI
|
SR
|
Investments
related to the Company’s production/operation
|
2,620
|
7,081.08
|
0.96
|
3,515
|
7.44
|
1.16
|
With
respect to establishing “annual goals” for minimizing wastage, input general consumption in production/operation
and for increasing efficiency in the use of natural resources, the Company (II):
|
(
) does not have goals ( ) attains from 51% to 75%
(
) attains from 0 to 50% (x) attains from 76 to 100%
|
(
) does not have goals ( ) attains from 51% to 75%
(
) attains from 0 to 50% (x) attains from 76 to 100%
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
|
Consolidated
|
5
- Indicators for the staff
|
2020
|
2019
|
Nº
of employees at the end of the period
|
|
|
49,050
|
|
|
57,983
|
Nº
of hired people during the period
|
|
|
206
|
|
|
946
|
Nº
of contracted employees (outsourcing) (IV)
|
|
|
92,766
|
|
|
103,133
|
Nº
of student trainees
|
|
|
149
|
|
|
530
|
Nº
of employees older than 45
|
|
|
18,437
|
|
|
24,842
|
Nº
of women that work in the Company
|
|
|
8,161
|
|
|
9,331
|
%
of leadership positions held by women
|
|
|
19.1%
|
|
|
18.4%
|
Nº
of black people that work in the Company (V)
|
|
|
14,799
|
|
|
16,763
|
%
of leadership positions held by Negroes (VI)
|
|
|
20.0%
|
|
|
19.3%
|
Nº
of handicapped workers
|
|
|
278
|
|
|
337
|
Ratio
Between the Compensation of Women and Men (VII)
|
|
|
0.95
|
|
|
0.92
|
Average
number of training hours per year per employee (VIII)
|
|
|
48.88
|
|
|
54.96
|
Anti-Corruption
Policy Training (VIII)
|
|
|
14
|
|
|
10
|
|
|
|
|
|
|
|
6
- Significant information with respect to the exercise of corporate citizenship
|
2020
|
Goals
2021
|
Ratio
between the Company’s highest and lowest compensation (VIII)
|
|
|
29.5
|
|
|
-
|
Total
number of work accidents (IX)
|
|
|
198.0
|
|
|
238
|
The
social and environmental projects developed by the Company were defined by:
|
(
) directors
|
(X)
directors and managers
|
(
) all employees
|
(
) directors
|
(X)
directors and managers
|
(
) all employees
|
The
health and safety standards in the work environment were defined by:
|
(X)
directors and managers
|
(
) all the employees
|
(
) everyone + Cipa
|
(X)
directors and managers
|
(
) all the employees
|
(
) everyone + Cipa
|
With
respect to union freedom, the right to collective bargaining and internal representation of the employees, the Company:
|
(
) is not involved
|
(
) follows ILO standards
|
(X)
encourages and follows ILO
|
(
) will not be involved
|
(
) will follow ILO standards
|
(X)
will encourage and follow ILO
|
The
pension benefits include:
|
(
) directors
|
(
) directors and managers
|
(X)
all employees
|
(
) directors
|
(
) directors and managers
|
(X)
all employees
|
Profit-sharing
includes:
|
(
) directors
|
(
) directors and managers
|
(X)
all employees
|
(
) directors
|
(
) directors and managers
|
(X)
all employees
|
In
the selection of suppliers, the same ethical standards and standards of social and environmental responsibility adopted by
the Company:
|
(
) are not considered
|
(
) are suggested
|
(X)
are required
|
(
) will not be considered
|
(
) will be suggested
|
(X)
will be required
|
With
respect to the participation of employees in voluntary work programs, the Company:
|
(
) is not involved
|
(
) gives support
|
(X)
organizes and encourages
|
(
) will not be involved
|
(
) will give support
|
(X)
will organize and encourage
|
Total
number of complaints and criticisms from consumers: (X)
|
in
the Company
4,816
|
in
Procon
1
|
in
Court
0
|
in
the Company
4,800
|
in
Procon
0
|
in
Court
0
|
%
of claims and criticisms attended or resolved: (X)
|
in
the Company
75%
|
in
Procon
0%
|
in
Court
0%
|
In
the Company
75%
|
in
Procon
0
|
in
Court
0
|
Total
value added to distribute (XI)
|
In
2020:
|
|
185,597
|
In
2019:
|
|
270,887
|
Distribution
of added value:
|
47%
government 12% employees 2%
shareholders 38% third parties 1% retained
|
54%
government 12% employees 4%
shareholders 19% third parties 11% retained
|
7
– Other information
(i)
Composed of salaries, benefits, FGTS, INSS and other employee benefits.
|
|
|
|
|
|
|
I.
Petrobras makes no distinction between the benefits offered to employees who work full-time and to employees who choose
to reduce their workload with a proportional reduction in remuneration. The benefits are offered to all employees without
distinction. Petrobras does not practice the type of contract on a temporary basis.
II.
Includes data from the Parent Company, Ibiritermo, PEB (Bolivia), FCC and Transpetro.
III.
Donations were made in cash, valued goods and services. They were destined to combat: COVID-19, floods, burning in the
Pantanal, famine and blackout in Amapá.
IV.
It only considers employees of service providers operating in the company's facilities.
V.
For cultural reasons in some countries, this information cannot be obtained and consolidated for all companies abroad.
VI.
We do not have in our controls the self-declared race / color of those assigned to Petrobras Parent Company (required),
and it is not possible to include them in the count of blacks in management positions.
VII.
The scope of this information is Petrobras Parent Company. In accordance with Guideline 7 of our Human Resources Policy
and with item 4.2.a of our Code of Ethical Conduct, Petrobras' Career and Compensation Plan (PCR) makes no gender distinction
in remuneration between men and women who occupy the same position or function. However, one of the factors that contribute
to the difference in remuneration between men and women is the work regime, considering that the special work regimes
pay the additional ones related to those regimes (higher remuneration) and, historically, it has been predominantly male
in the oil and gas industry.
VIII.
The scope of this information is Petrobras Parent Company.
IX.
As of 2021, the number of casualties reported is the number of casualties that make up the Company's top indicator (TAR-
Recordable Casualty Rate). The number of casualties that make up the TAR is the total number of casualties excluding those
injured with injuries related to first aid. By way of comparison, the number of TAR victims in 2019 was 330 victims. The
number of injured in 2020 was a historic result, significantly below the industry's best benchmarks. The number presented
for 2021 was estimated based on the Alert Limit (LA) established for the TAR indicator and the HHER (Man-Hour of Risk
Exposure) projected for the year and is below the industry benchmark. For clarification purposes, the term “Alert
Limit” is used in place of “target” for safety indicators. There is no specific alert limit for "accidents",
but for "injured".
X.
The significant reduction in numbers in the historical series was due to the sale of Petrobras Distribuidora, a company
that was most related to the final consumer.
XI.
In 2019, it includes the amount of R$ 27,844 referring to discontinued operations.
|
|
SUPPLEMENTARY INFORMATION (Unaudited)
PETROBRAS
(In millions of reais, unless otherwise indicated)
|
Additional
information of general public concern – Law 13,303/16 (unaudited)
In
order to comply with rules of disclosure about the activities that, in accordance with the requirements of article 3 of Petrobras'
Bylaws, are related to the achievement of public interest purposes under conditions different from those of any other private
sector company operating in the same market, we summarize below the commitments in effect in the year 2020:
I
– Priority Thermoelectric Program – (Programa Prioritário de Termeletricidade- PPT)
The
Program, instituted by Decree nº 3.371, of February 24, 2000, aimed at the implantation of thermoelectric plants. These plants,
members of the Priority Thermoelectricity Program, are entitled to a supply of natural gas for a period of up to 20 years, with
a pre-established price and adjusted by American inflation. The supply of gas to the plants under this program, in 2020, generated
revenues of approximately R$ 1,360 and costs of R$ 1,885, a result borne by the company's budget.
II–
National Program for Rationalization of the Use of Oil and Gas Products (Programa Nacional de Racionalização
do Uso dos Derivados do Petróleo e do Gás Natural – CONPET)
The
Program, instituted through the Decree of July 18, 1991, aims to promote the development of an anti-waste culture in the use of
non-renewable natural resources. We also participate in the Brazilian Labeling Program (PBE), in partnership with the National
Institute of Metrology, Quality and Technology (INMETRO), which aims to stimulate the production and use of devices that use gas,
in addition to other arrangements for drafting agreements with entities for the purpose of monitoring and guiding vehicle emissions.
In 2020, the costs associated with CONPET, borne by the company's budget, were considered immaterial.
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS
PETROBRAS
Financial Statements as of December 31, 2020
BOARD
OF DIRECTORS
|
|
|
|
|
|
|
EDUARDO
BACELLAR LEAL FERREIRA
|
CHAIRMAN
|
|
|
|
|
|
|
|
|
|
ROBERTO
CASTELLO BRANCO
|
NIVIO
ZIVIANI
|
MARCELO
MESQUITA DE SIQUEIRA FILHO
|
MEMBER
|
MEMBER
|
MEMBER
|
|
|
|
|
|
|
|
|
|
RUY
FLAKS SCHNEIDER
|
JOÃO
COX NETO
|
PAULO
CESAR DE SOUZA E SILVA
|
MEMBER
|
MEMBER
|
MEMBER
|
|
|
|
|
|
|
|
|
OMAR
CARNEIRO DA CUNHA SOBRINHO
|
RODRIGO
DE MESQUITA PEREIRA
|
LEONARDO
PIETRO ANTONELLI
|
MEMBER
|
MEMBER
|
MEMBER
|
|
ROSANGELA
BUZANELLI TORRES (*)
MEMBER
|
|
|
|
|
|
(*)
Disclaimer related to the vote of Rosangela Buzanelli who approved the financial statements, but did not approve the Management
Report.
EXECUTIVE
BOARD
|
|
ROBERTO
CASTELLO BRANCO
|
CHIEF
EXECUTIVE OFFICER (President)
|
|
|
|
|
|
|
ANDREA
MARQUES DE ALMEIDA
|
RODRIGO
COSTA LIMA E SILVA
|
CARLOS
ALBERTO PEREIRA DE OLIVEIRA
|
CHIEF
FINANCIAL AND INVESTOR RELATIONS EXECUTIVE OFFICER
|
CHIEF
REFINING AND NATURAL GAS EXECUTIVE OFFICER
|
CHIEF
EXPLORATION AND PRODUCTION EXECUTIVE OFFICER
|
|
|
|
|
|
|
ANDRÉ
BARRETO CHIARINI
|
ROBERTO
FURIAN ARDENGHY
|
RUDIMAR
ANDREIS LORENZATTO
|
CHIEF
COMMERCIALIZATION AND LOGISTICS OFFICER
|
CHIEF INSTITUTIONAL RELATIONS AND SUSTAINABILITY EXECUTIVE OFFICER
|
CHIEF
PRODUCTION DEVELOPMENT EXECUTIVE OFFICER
|
|
|
|
|
|
|
MARCELO
BARBOSA DE CASTRO ZENKNER
|
|
NICOLÁS
SIMONE
|
CHIEF
GOVERNANCE AND COMPLIANCE EXECUTIVE OFFICER
|
|
CHIEF
DIGITAL TRANSFORMATION AND INNOVATION EXECUTIVE OFFICER
|
|
RODRIGO
ARAUJO ALVES
CHIEF
ACCOUNTING OFFICER (CAO) CHIEF ACCOUNTING OFFICER - CRC-RJ-115.881/O-3
|
|
|
|
|
|
|
|
STATEMENT OF DIRECTORS ON FINANCIAL STATEMENTS AND AUDITORS’
REPORT
PETROBRAS
In
compliance with the provisions of items V and VI of article 25 of CVM Instruction No. 480, of December 7, 2009, the chief executive
officer and directors of Petróleo Brasileiro SA - Petrobras, a publicly-held company, headquartered at Avenida República
do Chile, 65, Rio de Janeiro, RJ, registered with the CNPJ under nº 33.000.167 / 0001-01, declare that the financial statements
were prepared in accordance with the law or the bylaws and that:
(i)
reviewed, discussed and agreed with Petrobras' financial statements for the fiscal year ended December 31, 2020;
(ii)
reviewed, discussed and agreed with the opinions expressed in the KPMG Auditores Independentes report, regarding Petrobras' financial
statements for the fiscal year ended December 31, 2020.
Rio
de Janeiro, February 24, 2021.
Roberto
Castello Branco
|
|
Andrea
Marques de Almeida
|
Chief
Executive Officer
|
|
Chief
Financial and Investor Relations Executive Officer
|
|
|
|
|
|
|
Rodrigo
Costa Lima e Silva
|
|
Carlos
Alberto Pereira de Oliveira
|
|
|
|
Chief
Refining and Natural Gas Executive Officer
|
|
Chief
Exploration and Production Executive Officer
|
|
|
|
|
|
|
André
Barreto Chiarini
|
|
Roberto
Furian Ardenghy
|
Chief
Commercialization and Logistics Executive Officer
|
|
Chief
Institutional Relations and Sustainability Executive Officer
|
Rudimar
Andreis Lorenzatto
|
|
Marcelo
Barbosa de Castro Zenkner
|
Chief
Production Development Executive Officer
|
|
Chief
Governance and Compliance Executive Officer
|
Nicolás
Simone
|
|
|
Chief
Digital Transformation and Innovation Executive Officer
|
|
|
KPMG
Auditores Independentes
Rua
do Passeio, 38 - Setor 2 - 17º andar - Centro
20021-290
- Rio de Janeiro/RJ - Brasil
Caixa
Postal 2888 - CEP 20001-970 - Rio de Janeiro/RJ - Brasil
Telefone
+55 (21) 2207-9400
www.kpmg.com.br
|
(A
free translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange Commission
(CVM), prepared in accordance with the accounting practices adopted in Brazil, rules of the CVM and of the International
Financial Reporting Standards - IFRS)
|
To
the Board of Directors and Shareholders of
Petróleo
Brasileiro S.A. - Petrobras
Rio
de Janeiro - RJ
Opinion
|
We
have audited the individual and consolidated financial statements financial statements of Petróleo Brasileiro S.A.
- Petrobras S.A. ("Company"), referred to as parent company and consolidated financial statements, respectively,
which comprise the statement of Financial Position as of December 31, 2020, and the statement of income, the statement
of Comprehensive Income, Statement of Changes in Shareholders’ equity and Statement of Cash Flows for the year then
ended, and notes to the financial statements, including significant accounting policies and other explanatory information.
In
our opinion, the accompanying financial statements present fairly, in all material respects, the individual and consolidated
financial position of Petróleo Brasileiro S.A. - Petrobras, as at December 31, 2020, and its individual and consolidated
financial performance and its individual and consolidated cash flows for the year then ended in accordance with Brazilian
accounting policies and the International Financial Reporting Standards (IFRS) issued by the International Accounting
Standards Board - IASB.
|
|
KPMG
Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas
à KPMG International Cooperative (“KPMG International”), uma entidade suíça.
|
KPMG
Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity.
|
|
|
|
|
|
Basis
for Opinion
|
We
conducted our audit in accordance with International and Brazilian Standards on Auditing. Our responsibilities under those
standards are further described in the “Auditors responsibilities for the audit of the individual and consolidated
financial statements” section of our report. We are independent from the Company and its subsidiaries in accordance
with the ethical requirements that are relevant to our audit of the financial statements and are set forth on the Professional
Code of Ethics for Accountants and on the professional standards issued by the Regional Association of Accountants, and
we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
|
Key
Audit Matters
|
|
|
Key
audit matters are those matters that, in our professional judgment, were of most significance in our audit of the current
period. These matters were addressed in the context of our audit of the individual and consolidated financial statements as
a whole, and in forming our opinion thereon, and we do not express a separate opinion on these matters.
|
1
- Assessment of the measurement of the defined benefit obligations for pension and health care plans
|
According
to note 19 of the individual and consolidated financial statements.
|
Key
audit matter
|
How
the matter was addressed in our audit
|
The
Company sponsors defined benefit pension plans and health care plans that provide supplementary retirement benefits and
medical care to its employees.
The
measurement of the actuarial obligation of the pension and health plans is dependent, in part, on the selection of certain
actuarial assumptions. These assumptions include the discount rate and projected medical costs. The Company hires external
actuaries to assist in the process of assessing the actuarial assumptions and valuing the obligations under its pension
and health care plans.
We
considered the assessment of the measurement of the defined benefit obligations for the pension and health care plans
as a key audit matter due to the level of judgment inherent to the actuarial assumptions determination, as well as for
the significant impact that minor changes on these assumptions could have on the actuarial obligations of the pension
and health care plans.
|
Our
audit procedures included, but were not limited to:
-
tests of effectiveness of certain internal controls related to the process of measuring the actuarial liability,
including controls related to the development, review and approval of the discount rates and projected medical costs assumptions;
-
assessment of the scope, competency, and objectivity of the external actuaries hired to assist in estimating the
actuarial obligations for the pension and health care plans, including the nature and scope of the work performed, their
professional qualifications and experiences; and
-
assessment, with the support of our specialists on actuarial calculation, of the assumptions such as discount rates
and projected medical costs, including comparing them to external sources.
According
to the evidence obtained from performing the procedures described above, we considered that the measurement of the actuarial
liability is acceptable in the context of the individual and consolidated financial statements taken as a whole, for the
year ended December 31, 2020.
|
2
- Evaluation of the impairment testing of exploration and production cash generating units (“CGUs”)
|
According
to note 27 of the individual and consolidated financial statements.
|
Key
audit matter
|
How
the matter was addressed in our audit
|
–
For the impairment of PP&E and intangible, the Company identifies its cash generating units (“CGUs”),
estimates the recoverable amount of each CGUs based on a projected cash flow for each CGU, and compares to their carrying
amount. The cash flow projections used to determine the recoverable amount depend on certain future assumptions such as:
Brent oil price, exchange rate (Real/Dollar), capitalizing expenditures (”CAPEX”), operating expenditure (“OPEX”),
and volume and timing of recovery of the oil and gas reserves. The recoverable amount is also sensitive to minor changes
in the discount rate used in the cash flow.
–
The definition of exploration and production CGUs considers operational factors that impact the interdependencies
between oil and gas assets, and, consequently, alter the aggregation or segregation of the exploration and production
areas into CGUs.
–
Due to the level of complexity and subjectivity on the definition of exploration and production´s CGUs, and
on the estimate of the recoverable amount, we considered this as a key audit matter.
|
Our
audit procedures included, but were not limited to:
–
tests of effectiveness of certain internal controls related to the process of determining the recoverable amount
of exploration and production´s CGU assets, including controls related to the review and approval of the determination
of the CGUs, and of the key assumptions used to estimate the recoverable amount;
–
for changes in exploration and production CGUs during the year, we assessed the operational factors considered
by the Company for these changes, and compared them to information obtained from internal and external sources;
–
we assessed the determination of recovery of oil and gas reserves estimates, by comparing it with volumes certified
by external reservoirs experts hired by the Company, and, for a selection of CGUs, with historical data on production;
–
assessment of the scope, competency, and objectivity of the external reservoir specialists hired by the Company
that certified the estimated reserve volumes. This included assessing the nature and scope of the work they were engaged
to perform and their professional qualifications and experience;
–
we assessed, for a selection of CGUs, the CAPEX and OPEX used on the cash flow projection by comparing to the latest
business plan approved by the Company, and its long-term budgets; and
–
we assessed Company’s ability to project cash flows by comparing the prior years’ estimated cash flows
with actual Company´s cash flows for the year ended December 31, 2020 for a selection of CGUs.
–
with the support of our corporate finance specialists, we assessed the key assumptions used in the impairment testing
such as the discount rates, future oil and gas prices and the exchange rates by comparing them against external market
data.
According
to the evidence obtained from performing the procedures described above, we considered that the recoverable amounts for
the exploration and production CGUs are acceptable in the context of the individual and consolidated financial statements
taken as a whole, for the year ended December 31, 2020.
|
3
– Evaluation of provisions and disclosures for certain specific labor, civil and tax lawsuits
|
According
to note 20 of the individual and consolidated financial statements.
|
Key
audit matter
|
How
the matter was addressed in our audit
|
–
The Company is involved in tax, civil and labor lawsuits during the normal course of its activities.
–
The Company records provisions for these lawsuits when it is probable that an outflow of cash will be required
to settle a present obligation, and when the outflow can be reasonably estimated. The Company discloses a contingency
whenever the likelihood of loss of the lawsuit is considered possible, or when the likelihood of loss is considered probable
but it is not possible to reasonably estimate the amount of the outflow.
We
considered this subject to be a key audit matter due to the level of judgment embedded on estimating the related amounts,
and the likelihood of an outflow of resources, coming from the most significant labor, civil and tax lawsuits.
|
Our
audit procedures included, but were not limited to:
–
tests of effectiveness of certain internal controls related to the process of evaluating the lawsuits, including
controls related to the review and approval of the determination of the likelihood of an outflow of resources, and the
estimate of the amount, as well as controls over the individual and consolidated financial statements disclosures;
–
assessment of the scope, competency, and objectivity of the internal and external legal counsel that support the
Company on the definition of the estimated amounts, and the likelihood of an outflow of resources, as well as their professional
qualifications and experience;
–
assessment of confirmations, received directly from the external legal counsels, that included an assessment of
the likelihood of loss and the estimate of the amounts. We compared these assessments and estimates to those used by the
Company, and evaluated the sufficiency of the legal contingency disclosures; and
–
assessment of Company’s ability to prepare these estimates by comparing the amounts paid upon resolution
of legal proceedings during the year to the amounts previously provided for.
According
to the evidence obtained from performing the procedures described above, we considered acceptable the level of provision
for the lawsuits referred above, as well as to the respective disclosures in the individual and consolidated financial
statements taken as a whole, for the year ended December 31, 2020.
|
4
- Evaluation of the estimate of the provision for decommissioning costs
|
According
to note 21 of the individual and consolidated financial statements.
|
Key
audit matter
|
How
the matter was addressed in our audit
|
–
As a consequence of its operations, the Company incurs on costs related to the obligation to restore the area environment
upon abandonment.
–
The Company’s estimate of the provision for decommissioning costs includes assumptions in relation to the
extent of the obligations assumed for environmental restoration and the dismantlement and removal of oil and gas production
facilities, as well as the timing and estimated costs of the abandonment.
We
identified the evaluation of the estimate as a key audit matter due to the level of judgment involved on determining the
respective assumptions, especially on the extent of the obligations assumed for the environmental rapair, which is the
criteria to be met when the restoration actually occurs, the timing and estimated costs of abandonment.
|
Our
audit procedures included, but were not limited to:
–
tests of effectiveness of certain internal controls related to the process of defining the provision for decommissioning
areas estimate, . including controls related to the development, review and approval of the key assumptions such as timing
of area abandonment and estimated costs of decommissioning;
–
assessment of the assumption of abandonment timing used by the Company, by comparing the production curves and
useful life of the oil and gas reserves used in the estimate, with oil reserve volumes certified by external reservoirs
experts hired by the Company;
–
assessment of the estimated costs of decommissioning by comparing with external industry reports;
–
assessment of the scope, competency, and objectivity of the Company´s internal engineers responsible for
the production curves and useful life of the oil and gas reserves, as well as the external reservoir experts hired by
the Company to certify the reserve volumes. This included assessing the nature and scope of the work performed, and their
professional qualifications and experience;
–
assessment of Company’s ability to prepare this estimate by comparing a selection of actual expenditure incurred
with the decommissioning of oil and gas production facilities already under abandonment, to the provision for decommissioning
previously registered.
According
to the evidence obtained from performing the procedures described above, we considered that the amount of provision for
decommissioning costs is acceptable in the context of the individual and consolidated financial statements taken as a
whole, for the year ended December 31, 2020.
|
Other
matters
|
Statements
of value added
The
individual and consolidated statements of value added for the year ended December 31, 2020, prepared under the responsibility
of the Company's management, and presented as supplementary information for IFRS purposes, were submitted to the same
audit procedures followed together with the audit of the Company's financial statements. In order to form our opinion,
we evaluated whether these statements are reconciled to the financial statements and to the accounting records, as applicable,
and whether their form and content are in accordance with the criteria set on Technical Pronouncement CPC 09 - Statement
of Value Added. In our opinion, these statements of value added have been adequately prepared, in all material respects,
according to the criteria set on this Technical Pronouncement and are consistent with the individual and consolidated
financial statements taken as a whole.
|
Other
Information
|
The
Company's management is responsible for the other information. The other information comprises the Management’s
Report and the Financial Performance Report.
Our
opinion on the individual and consolidated financial statements does not cover the Management’s Report and the Financial
Performance Report and we do not express any form of assurance conclusion thereon.
In
connection with our audit of the individual and consolidated financial statements, our responsibility is to read the Management’s
Report and the Financial Performance Report and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work performed, we conclude that there is material misstatement in the Management’s Report and
in the Financial Performance Report, we are required to report on such fact. We have nothing to report on this respect.
|
Responsibilities
of Management and Those Charged with Governance for the Individual and Consolidated Financial Statements
|
Management
is responsible for the preparation and fair presentation of the individual and consolidated financial statements in accordance
with International Financial Reporting Standards (IFRS), and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In
preparing the individual and consolidated financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company and its subsidiaries, or to cease
operations, or has no realistic alternative but to do so.
Those
charged with governance are responsible for overseeing the Company’s and its subsidiaries' financial reporting process.
|
Auditors’
Responsibilities for the Audit of the Individual and Consolidated Financial Statements
|
Our
objectives are to obtain reasonable assurance about whether the individual and consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but it is not a guarantee that the examination performed in accordance with
Brazilian and international standards on auditing will always detect possible existing material misstatements. Misstatements can
arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
As
part of the examination performed in accordance with Brazilian and international standards on auditing, we exercised professional
judgment and maintained professional skepticism throughout the audit. We also:
|
•
|
Identify
and assess the risks of material misstatement of the individual and consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve the act of collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control..
|
|
•
|
Obtain
an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control.
|
|
•
|
Evaluate
the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
|
|
•
|
Conclude
on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Company’s and its
subsidiaries' ability to continue as a going concern. If we conclude that a material
uncertainty exists, then we are required to draw attention in our auditors’ report
to the related disclosures in the individual and consolidated financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor´s report. However,
future events or conditions may cause the Company and its subsidiaries to cease to continue
as a going concern.
|
|
•
|
Evaluate
the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the individual and consolidated financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
|
|
•
|
Obtain
sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the individual and consolidated
financial statements. We are responsible for the direction, supervision and performance
of the group audit. We remain solely responsible for our audit opinion.
|
We
communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We
also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence
and where applicable, related safeguards.
From
the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the financial statements of the current year and are therefore the key audit matters. We describe these matters in our
auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Rio
de Janeiro, February 24, 2021
KPMG
Auditores Independentes
CRC
SP-014428/O-6 F-RJ
Original
report in Portuguese signed by
Marcelo
Gavioli
Accountant
CRC 1SP201409/O-1
KPMG
Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas
à KPMG International Cooperative (“KPMG International”), uma entidade suíça.
|
KPMG
Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity.
|
REPORT
OF THE FISCAL COUNCIL
PETROBRAS
REPORT
OF THE FISCAL COUNCIL
The
Fiscal Council of Petróleo Brasileiro S.A. - PETROBRAS, in the exercise of its legal and statutory functions, at a meeting
held on this date, examined the following documents issued by PETROBRAS and examined by the Board of Directors on February 24,
2021: I – Management’s Report of 2020; II - Financial Statements for the year ended on December 31, 2020; and III
- Dividend Distribution Proposal for 2020.
Based
on the examinations performed, considering the accounting practices adopted in Brazil, the information provided by Management
and the Independent auditors' report on the individual and consolidated financial statements, issued without reservations by KPMG
Auditores Independentes, also dated February 24, 2021, the Fiscal Council believes that the documents presented are in a position
to be deliberated by the Annual General Meeting of PETROBRAS 'Shareholders.
Rio
de Janeiro, February 24, 2021.
José
Franco Medeiros de Morais
Chairman
Agnes
Maria de Aragão da Costa
Counselor
Daniel
Alves Ferreira
Counselor
Marcelo
Gasparino da Silva
Counselor
Sergio
Henrique Lopes de Sousa
Counselor
Eduardo
Damázio da Silva Rezende
Technical
Advisor
CRC/RJ-
084155/O-3
SUMMARIZED
ANNUAL REPORT OF THE STATUTORY AUDIT COMMITTEE - FISCAL YEAR 2020
PETROBRAS
To the
Board of Directors of
Petróleo
Brasileiro S.A.- Petrobras
Presentation
The
Statutory Audit Committee (“SAC” or “Committee”) is a permanent body, directly linked to the Board of
Directors of Petróleo Brasileiro S.A. - Petrobras (“Company”), has its own Internal Regulations (“Rules”),
being governed by the rules provided for in Brazilian legislation and other regulations - especially by Law No. 13,303, of June
30, 2016, Decree No. 8,945, of December 27, 2016 and CVM Instruction No. 308 of the Brazilian Securities Commission, of May 14,
1999, as amended by CVM Instruction 509, of November 16, 2011, and other applicable regulations, including the Sarbanes-Oxley
Act (“SOx”) and rules issued by the U.S. Securities and Exchange Commission (“SEC”) and the Stock Exchange
New York Securities (“NYSE”).
The
Statutory Audit Committee's purpose is to assist the Board of Directors in the exercise of its functions, acting mainly on (i)
the quality, transparency and integrity of the annual and quarterly consolidated financial statements; (ii) the effectiveness
of the internal control processes for the production of financial reports; (iii) the performance, independence and quality of
the work of the independent auditors and the Internal Auditors; (iv) risk management; (v) transactions with related parties; (vi)
the actuarial calculations and results of the plans and benefits maintained by the Fundação Petrobras de Seguridade
Social; (vii) monitoring the activities of the health care plan in the self-management modality; and (viii) the adequacy of
actions to prevent and combat fraud and corruption.
The
SAC is composed of 3 (three) members, chosen by the Board of Directors from among its members. At least 01 (one) of the members
of the SAC must be a member of the Petrobras Board of Directors elected by the minority shareholders or by the holders of preferred
shares.
Summary
of activities in 2020
In
the period from February 17, 2020 (first regular meeting of the SAC after consideration of the 2019 Financial Statements) to February
22, 2021 (until the regular meeting of the SAC that examined the 2020 Financial Statements), the Statutory Audit Committee of
Petrobras held 50 meetings (listed in Appendix I), which covered 263 agendas (*), involving Board Members, Fiscal Council Members,
Special Investigation Committee Members, Executive Directors, Executive Managers, Ombudsman-General, Internal Auditors, Independent
Auditors, Internal and External Lawyers and members of Audit Committees of Petrobras System companies, segregated as follows:
(*)
All figures exclude 11 agendas dealt with in matters of order of meetings, such as: agendas calendar, record of compliance with
SAC demands and other topics related to the Committee's management.
During
this period, the SAC issued 129 statements, which represents an average of 2.6 statements per meeting. The manifestations can
be requests, orientations and suggestions, as defined in the standard of operation of the SAC:
-
Requests are those in which the responsible units must return to the Committee, according to the defined term or for periodic
monitoring, such as follow-up;
-
The guidelines are those that the Committee expects to be followed by the responsible units, with no mandatory return to the Committee,
and are generally related to the matters referred;
-
Suggestions are those issued to the responsible units, who will carry out an assessment of pertinence and opportunity for reception.
Over
the period, 117 Requests were monitored, considering Requests issued in the period and in previous periods that were still open,
of which 90 were answered in that period.
Among
the activities carried out in the year, the following stand out:
•
Monitoring the process of preparing the financial statements and quarterly financial information, through meetings with administrators
and independent auditors;
•
Monitoring of the risk matrix classified as High and Very High;
•
Receipt, forwarding and monitoring of complaints through the Governance and Compliance Activities Report, and through the Integrated
Ombudsman's General Report;
•
Monitoring the Annual Internal Audit Activities Plan, where the SAC became aware of the points of attention and recommendations
resulting from the Internal Audit work, as well as monitoring the sanitary measures adopted by the Management;
•
Evaluation of the summary of transactions with Petrobras related parties, review of the Related Parties Policy and appreciation
of 12 guidelines for prior analysis of transactions with related parties;
•
Quarterly monitoring of the Fraud and Corruption Risk Matrix (considering the challenges and mitigation actions, and the materiality
matrix to support the selection of these challenges to the risks of fraud and corruption) and monitoring of the Implementation
Plan of the General Law on Protection of Data;
•
Evaluation of the Semiannual Management Report on the Sponsorship of Pension Benefit Plans, the restructuring of the Petrobras
System's Petros Plans, the Petros New Equation Plan, the Petros - 3 Plan (PP3), the impacts of the economic crisis due to the
coronavirus in Petros 'plans, and in Petros' Governance and Investment Policy;
•
Evaluation of the Consolidated Report on the cost of the AMS 2019 health care benefit;
•
Monitoring the “waves” of the Implementation Plan for the transition to the new management model for Multidisciplinary
Health Care;
•
Holding three joint meetings with the Fiscal Council, and holding 17 meetings, as agenda items, with the Audit Committee of the
Petrobras Conglomerate and with the audit committees of the companies of the Petrobras conglomerate that have their own SAC (Local
SAC), namely: SAC of Transpetro, SAC of TBG and SAC of Gaspetro;
•
Monitoring the Evolution of the Automation of Internal Controls; the # tranS4mar Project; and the “Cybersecurity”
theme at Petrobras.
Recommendations
to the Executive Board
In
the debates established at the meetings, held during the period in question, with the managers of the various areas of the Company,
recommendations were made to improve the control and business management processes.
Conclusions
and recommendation to the Board of Directors
During
the year of 2020, the members of the Statutory Audit Committee, bearing in mind the attributions and limitations inherent to the
scope of their performance, considering all the analyzes, studies and debates carried out during the meetings and the monitoring
and supervision work carried out, previously here described in summary form, concluded that:
(i)
the internal control processes for the production of financial reports were effective and the actions to prevent and combat fraud
and corruption were adequate;
(ii)
the Internal Audit had a financial budget compatible with its organizational structure, allowing a satisfactory performance of
its functions, with independent performance;
(iii)
the Independent Audit was effective and no occurrence was reported that could compromise its independence;
(iv)
the management and monitoring of the main risk factors was managed by Management;
(v)
transactions with related parties evaluated and monitored in the period complied with Petrobras' Policy on Transactions with Related
Parties and provided evidence regarding the existence of strictly commutative conditions, transparency, equity, interest of the
Company and adequate and timely disclosure; and
(vi)
the parameters on which the actuarial calculations were based, as well as the result of the benefit plans maintained by the Petrobras
Social Security Foundation are reasonable and in line with the best market practices.
The
year of 2020 was a very productive period for Petrobras' Statutory Audit Committee, with emphasis on the activities of monitoring
the quality of financial statements, internal controls, compliance and risk management, in order to ensure balance, the transparency
and integrity of the financial information published for investors.
In
this context, as a result of all the monitoring and supervision work carried out by the Committee, SAC declares that no significant
divergence situation has been identified between Management, KPMG's Independent Auditors and the Statutory Audit Committee itself
in relation to the financial statements for the year ended December 31, 2020, with all relevant facts adequately disclosed in
the audited Financial Statements for ended December 31, 2020.
The
Statutory Audit Committee registers acknowledgement and recognition to the members of Statutory Audit Committee Sonia Julia Sulzbeck
Villalobos, Maria Cláudia Mello Guimarães and Walter Mendes de Oliveira Filho for the relevant contributions to
the work carried out by the SAC.
Rio
de Janeiro, February 22, 2021.
____________________________________
Omar
Carneiro da Cunha Sobrinho
Chairman
of the Statutory Audit Committee
Financial
and corporate accounting specialist
____________________________________
Paulo
Cesar de Souza e Silva
Member
of the Statutory Audit Committee
____________________________________
Rodrigo
de Mesquita Pereira
Member
of the Statutory Audit Committee