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Investor Presentaiton

several aspects given its technical expertise, in addi- tion to the ability to gather the necessary resources for the financing of projects focused on low carbon energies. The International Energy Agency (IEA) estimates that 50% of the emissions reductions needed to achieve net-zero emissions by 2050 will come from technologies that are still under devel- opment. Without the support of the oil and natu- ral gas sector, these very important technologies for reducing emissions may not reach the level of maturity and supply structure necessary for their large-scale competitive adoption. This shows that there is still a long way to go and the oil and gas sector has a lot to contribute to this trajectory. This industry also has the expertise and infrastructure needed to drive other activities. Sev- eral initiatives for investments in low-carbon tech- nologies can be observed in oil and natural gas companies. In line with the Paris Agreement, these companies have committed to meeting carbon re- duction targets. Data from Goldman Sachs Global Investment Research show, for example, that large companies in the sector allocated, on average, 15% of their 2021 budgets to low-carbon sources, while in 2019, this percentage was 4%. A significant example of synergy between the oil and gas sector and renewable sources from the perspec- tive of technological development is offshore wind energy. Knowledge of the type of environment, instal- lations on floating bases and the adequacy of ma- terials and techniques are some of the examples of synergies between these two sectors. The extensive expertise in the maritime environment held by the oil and natural gas sector can be configured as an im- portant way to reduce expenses and take advantage of knowledge, especially with regard to the construc- tion and operation of assets in this environment. With 7,367 km of coastline and 3.5 million km² of maritime space, the country is able to be a prom- ising agent in wind generation also in an offshore environment, contributing to the consolidation of its position as one of the leaders in energy transi- tion. The Brazilian potential has already attracted the attention of investors. Data from the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) indicate that there are about 177 GW in offshore wind projects with an open en- vironmental licensing process in the agency, four projects located on the coast of Espírito Santo to- taling more than 5 GW in the region. Thus, Brazil is positioned as a strategic location for bringing together characteristics that place it in a privileged position in terms of energy transition, espe- cially in aspects involving existing synergies with the O&G sector for decarbonization. The relatively clean energy matrix gives the country a differentiated pro- file of its emissions: while in most countries the ener- gy sector is the largest responsible for emissions, in Brazil this role is in the agriculture and land use sec- tor. In addition, the country is also notable for having an oil production with carbon intensity around 18 kg CO2eq per barrel, lower than some of the main play- ers in the Middle East that reach carbon intensities of the order of 70 kgCO2eq per barrel. These characteristics make it possible for Brazil to con- tinue investing in the oil and natural gas sector and reap the rewards in socioeconomic terms without taking the country off the path of energy transition and decarbon- ization. In this way, the construction of a decarbonized future in the country goes through a path that should be paved with an important contribution from the oil and gas sector, especially with the use of the existing syner- gies between the sector and renewable sources. This does not mean, however, that there is not much work to be done ahead nor any challenges. The oil and natural gas sector is aware of its role in the process of decarbonizing the economy and its commitments in the transition. Increasingly, it will be necessary to invest, innovate, research new technologies, improve methods and form partner- ships and the sector has already been directing efforts to deliver a more resilient barrel of oil with lower CO2 emission rates. This path has already begun to be trodden and the willingness of com- panies in the sector to seek a better future walks in the same direction as the desires of society.
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