Oil companies accelerate prospecting in the pre-salt

Jan 28, 2020

Report by consultancy Wood Mackenzie highlights that Petrobras and Shell found evidence of oil and gas in their wells, but nothing economically attractive for now

Since 2017, oil companies have paid R$ 42 billion for exploration areas in the Brazilian pre-salt layer, one of the regions most coveted by multinationals. Despite this, the first perforations showed frustrating results. According to a report by the international consultancy Wood Mackenzie, only Petrobras and Shell found evidence of oil and gas so far, but in wells without economic viability, information that the two companies do not confirm.

The results, however, do not discourage companies. The expectation is that investments in exploration will accelerate starting this year. Petrobras should maintain its leading role in exploration, but competition is expected to increase in the coming years because large international oil companies have made dozens of acquisitions in the auctions promoted by the National Petroleum Agency.

The state-owned company plans to make eight pre-salt drilling in 2020. Last year, it did this in just four areas. Shell and Equinor, which started operating in the pre-salt two years ago, are also preparing new drilling.

The priority of the two multinationals continues to be the North of Carcará and the South of Gato do Mato, extensions of already known discoveries, concluded in the 2nd round of sharing, in 2017. The companies will also leave for unexplored areas. The Anglo-Dutch company, for example, has plans to drill in the Saturno field, acquired in 2018, during the 5th Sharing Round.

British BP should start the first exploratory campaign in the pre-salt in Pau Brasil, in the Santos Basin, between 2021 and 2022. The American Exxon Mobil, the main protagonist of the auctions alongside Petrobras, informed last year that it would do at least five drilling in Brazil between 2019 and 2020, including its minority stakes in Uirapuru and Norte de Carcará.

Uirapuru is the main focus of the market’s attention right now, according to Marcelo de Assis, head of research in the field of oil exploration and production at Wood Mackenzie in Latin America. “The result of the next wells will dictate the interest of the companies in the auctions to come,” observes Assis. The consultancy estimates investments of up to US U$ 30 billion (about R $ 125 billion) in exploration in Brazil this year.

Source: Valor