Brazil's Lula government is actively pursuing new oil auctions and refinery expansions, signaling a strategic decision to double down on oil and gas development. This policy direction comes despite the country's ambitious net-zero targets.
The government's focus is on achieving energy security and increasing oil revenue, which directly benefits state-run oil firm Petrobras. This supportive political environment can facilitate Petrobras's investment plans and operational growth.
This approach indicates a prioritization of economic and energy independence through fossil fuel development in the short to medium term. It provides a clear mandate for Petrobras to continue its core business activities and expand its infrastructure.
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