Company: PBR
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001292814-25-001352
Chunk: 89

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-04-03
Form: 20-F
Item: Item 17
Chunk 89
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 U.S. dollar. They were negotiated under the new gas law.
 In 2024, we offered customers new products with flexible contractual conditions, allowing them to build their own portfolio:
 
–                                 inclusion                              
    of Henry Hub, a gas-to-gas indexer, in addition to the Brent indexer;
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–                        diversified                     
    contractual terms, ranging from four to 10 years; and
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–                                                 two                                              
      location options for delivering natural gas: (a) at the hub in which we are responsible for  
    contracting the entry into the transport system and the customer is responsible for contracting
     the exit or (b) at the delivery point (city-gate) in which we are responsible for contracting 
                                    the entry and exit of transport.                               
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 In addition, we offered customers two different types of mechanisms for the market to reach more competitive price levels and increase overall natural gas demand:
 
–                                            Performance                                         
                                      Mechanism (only offered to                                 
    local gas distribution companies): customers receive a price reduction up to 11% of the Brent
                indexer for quantities between 60% and 100% of the contracted volume.            
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–                                              Demand                                           
                                   Incentive Mechanism: customers                               
    receive a price reduction up to 10% of the Brent indexer for quantities between 90% and 100%
                                     of the contracted volume.                                  
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 In addition to this diversification and flexibility, our commercial conditions seek to make the competitive environment and the market opening process more dynamic by enabling, among others, the reduction of volumes contracted by distributors in the event of migration of volumes from captive customers to the free environment.
 As a result, new contracts and contractual amendments were signed with 15 local distribution companies and free industrial consumers, totaling 1.6 MM m³/d of additional contracted volume to be delivered in 2025.
 The Brazilian natural gas market is becoming increasingly competitive, as new suppliers gain access to local distribution companies and, more importantly, to industrial customers. This shift is driven by recent reforms in the legal and regulatory frameworks in Brazil, along with our initiatives that facilitated new suppliers to access the natural gas market (e.g., new contracts to allow new suppliers access to our natural gas processing units and gas pipelines).
 In this context, some industrial customers exercised the option to buy natural gas directly from suppliers (including, in some cases, Petrobras), therefore, the volume contracted by Petrobras with local distribution companies was reduced by 5 MM m³