Brazil’s state-run oil company, Petrobras, is considering increasing its investments in the next five-year business plan by up to 10% compared to the previous one, according to Chief Financial Officer Sergio Caetano Leite. This would bring the company’s capital expenditures to approximately $86 billion. The increase in the plan, which is still under discussion, would include adjustments for inflation amounting to $4 billion, as well as between $1 billion and $4 billion for new projects.

The upcoming plan, set to be published by the end of the year, will be the first since President Luiz Inacio Lula da Silva took office in January with a commitment to boosting investments by the oil giant and driving a green transition. Low carbon projects will play a significant role in the increased investment expected for the new plan.

According to Leite, if these low-carbon projects prove to be profitable and technically applicable, the investment amount could reach $86 billion, taking into account inflation adjustments.

Petrobras CEO Jean Paul Prates previously mentioned that the company’s next five-year business plan would maintain total investments at a level similar to the previous plan. The approved 2023-2027 plan, announced in December, had a total expenditure of $78 billion.

Despite the projected increase in investments, Petrobras aims to keep its gross debt between $50 billion and $65 billion. Leite emphasized the company’s cautious approach to indebtedness and its commitment to using cash flow for investment purposes.

During the second quarter, Petrobras recorded a 47% decline in net profit due to falling global oil and fuel prices. However, compared to its global peers, Petrobras’ income drop was relatively moderate. Major oil companies such as Exxon Mobil, Chevron, Shell, and TotalEnergies experienced significantly larger net income decreases during the same period.

Leite expressed optimism, stating that Petrobras is on track to deliver a company with a higher market capitalization by the end of the year, positioning it well for the future. Petrobras shares have already increased by 46% this year.