During the past 10 years, Brazil has transformed from one of the biggest energy importers to the 12th largest producer globally, establishing a juggernaut of an oil & gas industry, and opening its markets to international investors. Most of the major E&P service providers are actively investing or looking into the most optimal way to invest in Brazil, in order to be part of one of the biggest oil & gas industries in Latin America.
Brazil: A bastion of production and E&P growth
Brazil has a daily production of more than 2.73 million barrels of oil. The country has the second-largest oil reserves in South America, with 12.6 billion barrels of proven oil reserves discovered already. Its production is increasing by 5% every year, setting a precedent for the entire Latin America industry. In addition to this, Brazil is rapidly becoming a major producer of natural gas, with its production growing by more than 12.5% every year. The country produces more than 27.5 bcm, and has more than 400 bcm of proven reserves, with the potential for more as exploration continues.
Currently, Brazil has more than 123 blocks under exploration, with more than 371 fields in production, 273 onshore and 98 offshore.
Why is Brazil constantly on the news?
Brazil has been making waves in the past few years, generating a stream of constant updates, new investments and project developments.
During the COVID-19 pandemic, when most neighbouring countries had their production decline or stop, Brazil doubled its oil exports during August 2020 to 8.19 million tons from 3.76 million tons within a month, expanding its exportation to Asia.
In addition to that, Petrobras is selling acreage to new partners, such as the Santos and Dó-Ré-Mi basin block sale, with new players entering the country and Latin America.
New opportunities are opening for service providers, as Brazil is investing in increasing the life cycle of mature fields, acquiring new recovery technologies, and enhancing the oilfield recovery factor.
Furthermore, Total is planning to increase its Brazil oil production fivefold within five years.
The IOC aims to reach 150,000 bpd in 2025, with its current production estimated at 26,000 bpd. They currently have acquired 24 blocks in Brazil, with 10 operated, and 14 more open for partnerships and collaborative opportunities.
Brazil's regulatory reforms and new incentives
Major steps are being taken towards market privatization, as Brazil is undergoing significant reforms in its natural gas regime. Brazil’s government is voting on and updating its hydrocarbons laws and regulations. This means that 2021 has the potential to bring huge midstream opportunities to new investors.
Major IOCs and key regional players are investing in Brazil, creating extensive midstream opportunities, such as new pipeline network projects for storage and transportation of hydrocarbons. With 94% of oil reserves and 84% of gas reserves being located offshore, many opportunities are open for companies providing offshore services.
ANP is providing a new wave of incentives for IOCs, including reduction of royalties for the exceeding production; extension of the production phase, and incentivizing the assignment of rights of fields in order to maximize the recovery factor.
Meet ANP’s new Acting Director General
Raphael Moura, ANP’s newly appointed Acting General Director will announce new and upcoming oil & gas projects and opportunities in Brazil in front of international service leaders and IOCs from all over the world at the Latam & Caribbean Oil, Gas & Energy Summit on October 15th.
The Brazilian National Agency of Petroleum, Natural Gas and Biofuels is the federal government agency responsible for the regulation of the oil sector, and new opportunities in the country.
Discover first the newest investment opportunities on Latam & Caribbean´s largest gas projects, LNG transportation and more here: www.in-vr.co/latam-caribbean-online