Brazil's Oil Industry Scale Up Production, Looks to Growth

Researched by Industrial Info Resources (Sugar Land, Texas)--After surpassing this year's expectations for oil production, Brazil is pushing for a further increase in volumes, aligning Petrobras' strategy with Brazil's goals for 2025 and 2030. Brazil's production averaged 2.8 million barrels per day (BBL/d) in 2023, with peaks in June and July ranging from 3 million to 4 million BBL/d.

Roughly 75% of Brazil's total 2023 production comes from the pre-salt offshore region, while 20% is derived from the post-salt region. The remaining 5% comes from onshore fields, primarily mature fields in the recovery phases.

Brazil's National Agency for Petroleum, Natural Gas and Biofuels is forecasting a substantial increase in production, aiming to reach 4 million BBL/d by 2025 and 5 million BBL/d by 2030. Despite the diversity of fields with active investments in Brazil, the Buzios Field, which is owned by Petrobras, has emerged as the main driver for projected growth.

Industrial Info is tracking 531 active projects, valued at more than US$56 billion, in Brazil's Oil & Gas Production Industry. More than 90% of this investment is concentrated in the development of offshore fields, with a special focus on the Buzios Field, which is located in the pre-salt basin of Santos, which has an investment surpassing US$20 billion.

Petrobras, as the owner and operator of the field, is using floating, production, storage and offloading (FPSO) units in Buzios: P-74, P-75, P-76, P-77 and Almirante Barroso. Six additional units have already been ordered, out of which five are under construction. The state-owned company expects the sixth and seventh units, known as Almirante Tamandare and P-78, respectively, will begin production between late 2024 and early 2025.

The construction of the eighth FPSO, named P-79, has been awarded to a consortium comprising Saipem SpA (Milan, Italy) and Daewoo Shipbuilding & Marine Engineering Company (DSME) (Geoje-si, South Korea), with delivery scheduled for late 2025.

The first oil for 2026 is projected for FPSOs P-80 and P-82, which are under construction and have been awarded to Keppel Offshore and Sembcorp Marine Limited. Keppel Offshore is also leading the engineering, procurement and construction (EPC) of FPSO P-83, the 11th unit planned to be installed in the field, with construction set to begin in the first quarter of the upcoming year.

During 2024, Petrobras is expected to open EPC bids for the contract for the last unit destined for the Buzios Field, currently known as Buzios 12.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).