Brazil: New field developments to receive US$36 billion in investments by 2025

(PN) With an enviable portfolio of new offshore field developments, Brazil is expected to attract around 10% of the resources earmarked for new oil and gas projects worldwide by 2025. In addition, the country will receive a total of US$ 36.7 billion in investments in this period, which will be applied in the development of offshore assets. The calculation is by Rystad Energy, which also recalls that operators present in Brazil sanctioned 10 projects over the last year. Looking ahead, a number of other developments are also planned, including the Barracuda-Caratinga revitalization project, the Natator discovery, Karoon’s Neon project and additional FPSOs at Sepia and Atapu.

Rystad points out that Brazil’s oil and gas sanctioning momentum has increased in the past year after stagnating in 2020 due to the Covid-19 pandemic. Among the projects approved in 2021 are four Petrobras ventures: Mero 4, FPSO Maria Quitéria (Parque das Baleias) and FPSOs Búzios 6 and 7. Before, the Brazilian oil company had already announced the sanction of large undertakings in 2019, including Búzios 5, Mero phase 2 and the Marlim field revitalization projects (FPSOs Anita Garibaldi and Anna Nery).

In addition to Petrobras, international oil companies also contributed to the growing portfolio of developments in Brazil. The list covers Perenco’s brownfield redevelopment plans in the Vermelho, Carapeba and Pargo areas, approved in January 2021. Meanwhile, Australia’s Karoon is preparing for the Patola development. Norway’s Equinor focuses its efforts on its project in the Bacalhau field, the first greenfield project not operated by Petrobras in the Brazilian pre-salt area.

Rystad Energy anticipates that five more pre-salt greenfield ventures will be operated by oil companies in the next two years: Shell’s Gato do Mato field and PetroRio’s Wahoo field in 2022, and the Pão de Açúcar, Gávea gas discoveries and Equinor’s Seat, in block BM-C-33, in late 2023. Activity is expected to remain strong over the next three and a half years, with several projects in line for sanction, including the FPSOs for Búzios 8 and Búzios 9 , Berbigão/Sururu Phase 2 and the Petrobras fields in Sergipe-Alagoas Águas Profundas (SEAP). There is also an expectation that three more FPSOs will be destined for the Búzios field.

Rystad also estimates that South American oil and gas spending is expected to increase by around $11 billion in 2022, up 27% from a year earlier, due to high oil prices, recovering global demand. for oil and healthier E&P balances. This will mark the biggest year-over-year percentage increase in nearly 15 years, contributing to the considerable overall growth of 54% in the region from 2020 to 2023, when prices are expected to start stabilizing.

“A relatively large increase in CAPEX is expected to come at a time of economic uncertainty, dominated by inflation, potentially increasing costs for homeowners who will perform the next work,” the energy research firm predicted.

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