Brazil oil production to increase 70% by end of the decade, says minister

(U) The Brazilian government forecasts the country’s oil production will grow 70% by the end of the decade, propelled by multibillion-dollar investments from state-controlled company Petrobras and other operators.

Brazil is recovering faster when compared to the world’s largest economies, Mines and Energy Minister Adolfo Sachsida said Monday during the opening ceremony of the Rio Oil & Gas 2022 conference.

“Something different is happening in Brazil. We are cutting taxes and undergoing the largest economic revolution since 1990,” said Sachsida, highlighting that gross domestic product is on the rise and inflation is falling.

Brazil produced 2.82 million barrels per day of oil in June, according to the latest data from market regulator ANP.

Sachsida’s forecast implies output in Brazil will reach 4.8 million bpd by the end of the decade.

Petrobras is expected to play a prominent role in achieving this increase, as the company intends to place dozens of floating production, storage and offloading vessels on stream – mainly in the pre-salt province – over the next few years.

Sachsida also said Petrobras has already completed the sale of 60% of its planned divestments that are currently in the market, which helped improve competitiveness in Brazil’s oil sector with the entrance of new players.

“Production from the sold assets has increased on average 30% with new investments. Prior to that, production was actually declining,” the minister said.

Sachsida also called for the environmental licencing process in the northern equatorial margin to move faster, arguing Brazil could be losing one of its biggest opportunities in the area where the Foz do Amazonas, Para-Maranhao, Barreirinhas, Ceara and Potiguar basins are located.

“We want more responsibility in the environmental licencing but the answer must come faster. A process cannot be stalled for a decade,” he said.

Petrobras intends to resume exploration drilling in the northern equatorial margin in November, provided it secures the environmental license in time.

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