Petrobras Explained: Brazil's State Oil Company, Output and Political Role
Petrobras is Brazil's state-controlled oil and gas company, founded in 1953 and based in Rio de Janeiro. In the second quarter of 2026 it produced 3.34 million barrels of oil equivalent per day, mostly from deep-water pre-salt fields, and reported net income of US$10.4 billion. The federal government controls a majority of voting shares, making fuel-price decisions politically sensitive.
Petrobras began as a legal monopoly in October 1953 under Getúlio Vargas, dominating Brazilian oil for over forty years until the sector opened to rivals in the late 1990s. It remains the country’s largest producer, with exploration and production generating US$15.9 billion of adjusted EBITDA in Q2 2026.
Its pre-salt fields lie beneath salt layers up to two kilometres thick off Rio de Janeiro and São Paulo. Lifting costs there were US$4.45 per barrel before taxes and leasing, while Brent averaged US$104.52. Refineries set a record by operating at 101.2% of nominal capacity, producing about 1.9 million barrels per day.
Because the federal government controls a majority of voting shares, Petrobras fuel-price decisions may carry direct social consequences. Drivers, transport operators and low-income households could feel changes through pump prices and bus or delivery costs, while broader inflation may shift. Investors may weigh political risk against dividends and output. Any perceived political interference could affect confidence in Brazil’s energy sector, though the company’s deep-water production and refining scale may cushion some effects.