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Property, plant and equipment
 12 Months Ended
Dec. 31, 2022
Property, plant and equipment [abstract]  
Property, plant and equipment

 

23.Property, plant and equipment
23.1.By class of assets
 

Land, buildings

and

improvement

 Equipment and other assets (*)

Assets under

construction (**)

 Exploration and development costs (***) Right-of-use assets Total
Balance at January 1, 2022 2,383 53,126 16,922 35,847 17,052 125,330
Cost 4,080 98,085 25,954 61,906 26,382 216,407
Accumulated depreciation and impairment (****) (1,697) (44,959) (9,032) (26,059) (9,330) (91,077)
Additions − 841 7,525 48 7,126 15,540
Decommissioning costs - Additions to / review of estimates − − − 3,269 − 3,269
Capitalized borrowing costs − − 1,021 − − 1,021
Signature Bonuses Transfers (*****) − − − 1,177 − 1,177
Write-offs (20) (746) (2,152) (667) (1,469) (5,054)
Transfers (******) 130 5,162 (8,611) 3,617 2 300
Transfers to assets held for sale (27) (1,874) (410) (1,976) (140) (4,427)
Depreciation, amortization and depletion (88) (4,746) − (5,306) (4,478) (14,618)
Impairment recognition (note 25) − (693) (605) (142) (13) (1,453)
Impairment reversal (note 25) − 223 15 52 − 290
Translation adjustment 160 3,854 1,133 2,515 1,132 8,794
Balance at December 31, 2022 2,538 55,147 14,838 38,434 19,212 130,169
Cost 4,343 105,429 23,938 67,581 29,670 230,961
Accumulated depreciation and impairment (****) (1,805) (50,282) (9,100) (29,147) (10,458) (100,792)

 

 

             
Balance at January 1, 2021 3,043 58,680 15,443 31,166 15,869 124,201
Cost 5,450 107,199 27,544 60,902 23,780 224,875
Accumulated depreciation and impairment (****) (2,407) (48,519) (12,101) (29,736) (7,911) (100,674)
Additions − 1,650 5,761 5 6,954 14,370
Decommissioning costs - Additions to / review of estimates − − − (1,069) − (1,069)
Capitalized borrowing costs − − 971 − − 971
Signature Bonuses Transfers (****) − − − 11,629 − 11,629
Write-offs               (38) (588) (599) (1,645) (279) (3,149)
Transfers (******) (295) 2,934 (3,160) 1,781 3 1,263
Transfers to assets held for sale (53) (2,776) (575) (822) (14) (4,240)
Depreciation, amortization and depletion (97) (4,235) − (4,342) (4,281) (12,955)
Impairment recognition − (377) (1) (27) (4) (409)
Impairment reversal − 1,796 114 1,879 34 3,823
Translation adjustment (177) (3,958) (1,032) (2,708) (1,230) (9,105)
Balance at December 31, 2021 2,383 53,126 16,922 35,847 17,052 125,330
Cost 4,080 98,085 25,954 61,906 26,382 216,407
Accumulated depreciation and impairment (****) (1,697) (44,959) (9,032) (26,059) (9,330) (91,077)
(*) It is composed of production platforms, refineries, thermoelectric power plants, natural gas processing plants, pipelines, and other operating, storage and production plants, including subsea equipment for the production and flow of oil and gas, depreciated based on the units of production method.
(**) See note 12 for assets under construction by operating segment.
(***) It is composed of exploration and production assets related to wells, abandonment and dismantling of areas, signature bonuses associated with proved reserves and other costs directly associated with the exploration and production of oil and gas (oil and gas production properties).
(****) In the case of land and assets under construction, it refers only to impairment losses.
(*****) Transfer from intangible assets related to Atapu, Sepia and Itapu fields in 2022 (related to Búzios in 2021).
(*****) It includes mainly transfers between classes of assets and transfers from advances to suppliers.

 

 

The investments made by the company in 2022 were mainly for the development of oil and natural gas field production, primarily in the pre-salt (Búzios, Mero, Tupi, Itapu, among others), including the contracting of new leases.

23.2.Estimated useful life

The useful life of assets depreciated by the linear method are shown below:

 
Asset Weighted average useful life in years
Buildings and improvement 40 (25 to 50)
Equipment and other assets 20 (3 to 31) (except assets by the units of production method)
Exploration and development costs Units of production method
Right-of-use 8 (2 to 47)

 

 

The estimated useful life of buildings and improvements, equipment and other assets is as follows:

 
  Buildings and improvements, equipment and other assets
       
Estimated useful life Cost Accumulated  depreciation Balance at December 31, 2022
5  years or less 4,762 (3,894) 868
6 - 10 years 8,316 (6,288) 2,028
11 - 15 years 5,442 (1,767) 3,675
16 - 20 years 27,705 (16,590) 11,115
21 - 25 years 30,195 (7,709) 22,486
25 - 30 years 11,727 (3,480) 8,247
30 years or more 4,600 (1,855) 2,745
Units of production method 16,907 (10,498) 6,409
Total 109,654 (52,081) 57,573
Buildings and improvements 4,225 (1,799) 2,426
Equipment and other assets 105,429 (50,282) 55,147
       

 

 

23.3.Right-of-use assets

The table below shows the split by type of asset and readjustment clauses with possible impacts on accumulated depreciation and impairment, as follows:

       
  Platforms Vessels Properties Total
Balance at December 31, 2022 9,211 8,254 1,747 19,212
Cost 12,604 14,788 2,278 29,670
Accumulated depreciation and impairment (3,393) (6,534) (531) (10,458)
Without contractual readjustment clauses − (5,322) (64) (5,386)
With contractual readjustment clauses  - Brazil (3,393) (218) − (3,611)
With contractual readjustment clauses – abroad − (994) (467) (1,461)
Balance at December 31, 2021 9,840 5,997 1,215 17,052
Cost 13,362 11,267 1,753 26,382
Accumulated depreciation and impairment (3,522) (5,270) (538) (9,330)
Without contractual readjustment clauses − (4,375) (97) (4,472)
With contractual readjustment clauses  - Brazil (3,522) (196) − (3,718)
With contractual readjustment clauses – abroad − (699) (441) (1,140)

 

 

Accounting policy for property, plant and equipment

Property, plant and equipment are measured at the cost of acquisition or construction, including all costs necessary to bring the asset to working condition for its intended use and the estimated cost of dismantling and removing the asset and restoring the site, reduced by accumulated depreciation and impairment losses.

A condition for continuing to operate certain items of property, plant and equipment, such as industrial plants, offshore plants and vessels is the performance of regular major inspections and maintenance. Those expenditures are capitalized if a maintenance campaign is expected to occur, at least, 12 months later. Otherwise, they are expensed when incurred. The capitalized costs are depreciated over the period through the next major maintenance date.

Spare parts are capitalized when they are expected to be used during more than one period and can only be used in connection with an item of property, plant and equipment, and are depreciated over the useful life of the item of property, plant and equipment to which they relate.

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the costs of these assets.

General borrowing costs are capitalized based on the Company’s weighted average cost of borrowings outstanding applied over the balance of assets under construction.

In general, the Company suspends capitalization of borrowing to the extent investments in a qualifying asset hibernates during a period greater than one year or whenever the asset is prepared for its intended use.

Assets directly associated to the production of oil and gas in a contracted area whose useful lives are not less than the life of the field (reserve exhaustion time), including rights and concessions such as signature bonus, are depleted by the unit-of-production method.

The unit-of-production method of depreciation (amortization) is computed based on the monthly production volume over the proved developed oil and gas reserves, except for signature bonuses for which unit of production method takes into account the monthly production over the total proved oil and gas reserves on a field-by-field basis.

Assets related to oil and gas production with useful lives shorter than the life of the field; floating platforms and other assets unrelated to oil and gas production are depreciated on a straight-line basis over their useful lives, which are reviewed annually. Note 23.2 provides further information on the estimated useful life by class of assets. Lands are not depreciated.

Right-of-use assets are presented as property, plant and equipment and, according to the useful lives of their respective underlying assets and the characteristics of lease agreements (term, asset transfer or exercise of call option), are depreciated using the straight-line method based on contractual terms.

23.4.Oil and Gas fields operated by Petrobras returned to ANP

In 2022, the following oil and gas fields were returned to ANP: Anequim, Congro, Corvina, Garoupa, Garoupinha, Malhado, Namorado, Parati and Viola. These fields were returned to ANP mainly due to their economic unfeasibility and, as a consequence, the Company wrote off the amount of US$ 619 in addition to impairments recognized in prior years.

In 2021, the following oil and gas fields were returned to ANP: Bijupirá, Lagosta, Merluza e Salema. These fields were returned to ANP mainly due to their economic unfeasibility and, as a consequence, the Company wrote off the amount of US$ 27 in addition to impairments recognized in prior years.

In 2020, the following oil and gas fields were returned to ANP: Agulha, Caioba, Camorim, Dourado, Guaricema, Piranema, Piranema Sul, Salgo e Tatuí. These fields were returned to ANP mainly due to their economic unfeasibility and, as a consequence, the Company wrote off the amount of US$ 12 in addition to impairments recognized in prior years.

23.5.Capitalization rate used to determine the amount of borrowing costs eligible for capitalization

The capitalization rate used to determine the amount of borrowing costs eligible for capitalization was the weighted average of the borrowing costs applicable to the borrowings that were outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. For the year ended December 31,2022, the capitalization rate was 6.55% p.a. (6.17% p.a. for the year ended December 31, 2021).