Petrobras PBR, a Brazilian integrated oil and gas company, has announced investments exceeding R$70 billion in Sergipe, reinforcing its long-term commitment to Brazil’s energy sector, industrial development and agricultural growth. According to World Fertilizer, the announcement coincided with the visit of Brazilian President Luiz Inácio Lula da Silva to the Petrobras Fertilizer and Nitrogen Plant (Fafen-SE) in Laranjeiras, highlighting the state's strategic role in Petrobras’ expansion plans.
The investment package will support offshore oil and gas exploration, fertilizer production, infrastructure development and platform decommissioning activities. Together, these projects are expected to create approximately 28,000 direct and indirect jobs, strengthening Sergipe’s position as one of Brazil’s most important industrial and energy hubs.
Fafen-SE Returns to Production
A major milestone in Petrobras’ strategy is the reopening of the Fafen-SE fertilizer plant. The facility resumed ammonia production in December 2025 and restarted urea production in January 2026 following investments of approximately R$60 million.
Now operating at full capacity, the plant produces ammonia as well as pearl and granulated urea. With the ability to manufacture 1,800 tons of urea per day, Fafen-SE can meet roughly 7% of Brazil’s national demand, helping reduce dependence on imported fertilizers and strengthening domestic supply chains.
The facility’s return to operation has already generated 530 direct jobs and approximately 1,500 indirect jobs, delivering immediate economic benefits to the region.
Sergipe Deep Waters Project Receives Major Funding
The largest share of Petrobras’ investment will be directed to the Sergipe Deep Waters Project, which is set to receive more than R$60 billion under its strategic development plan.
Located offshore in deep-water areas, the project is expected to unlock significant oil and natural gas reserves, increase national production capacity and enhance Brazil’s energy security. The development is also expected to stimulate technological innovation and create opportunities across engineering, manufacturing, logistics and maritime services.
Supporting Industry and Agriculture
Petrobras’ investments connect two sectors that are critical to Brazil’s economy: energy and agriculture. Natural gas extracted from offshore fields serves as a vital raw material for fertilizer production, fostering synergies between energy development and agribusiness.
By increasing domestic production of both energy resources and fertilizers, Petrobras aims to improve supply security, strengthen industrial resilience and reduce exposure to global market volatility.
Platform Decommissioning Expands Economic Activity
In addition to exploration and production projects, Petrobras is investing in the decommissioning of shallow-water platforms. These activities require specialized engineering, environmental management and marine services, creating further opportunities for skilled workers and regional suppliers while ensuring compliance with environmental and operational standards.
Sergipe’s Growing Strategic Importance
The combination of fertilizer manufacturing, offshore energy development and infrastructure investments is transforming Sergipe into a key industrial center. As Petrobras advances these projects, local businesses, contractors and service providers are expected to benefit from increased demand and long-term economic growth.
With major energy and industrial projects moving forward simultaneously, Sergipe is emerging as a strategic pillar of Brazil’s future development, supporting both national energy security and agricultural competitiveness.
PBR's Zacks Rank & Key Picks
Petrobras is one of Brazil’s largest energy companies, with operations spanning oil and gas exploration, production, refining and distribution. The company is also expanding its presence in strategic sectors such as fertilizers and low-carbon energy to support Brazil’s energy security and industrial development. Currently, PBR has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Chevron CVX, Imperial Oil IMO and Marathon Petroleum MPC, sporting a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron is valued at $370.1 billion. It is one of the world's largest integrated energy companies, engaged in oil and natural gas exploration, production, refining and marketing across multiple continents. Chevron is also investing in lower-carbon technologies, including renewable fuels, hydrogen and carbon capture, to support the global energy transition.
Imperial Oil is valued at $58.42 billion. It is a major Canadian petroleum company involved in crude oil production, refining and fuel distribution, with operations concentrated in Canada. A majority-owned subsidiary of ExxonMobil, Imperial Oil benefits from advanced technology and expertise while maintaining a strong presence in Canada's energy sector.
Marathon Petroleum is valued at $75.51 billion. It is one of the largest downstream energy companies in the United States, operating extensive refining, transportation and fuel marketing networks. Through its refining assets and retail fuel brands, Marathon Petroleum supplies gasoline, diesel and other petroleum products to consumers and businesses nationwide.
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This article originally published on Zacks Investment Research (zacks.com).