Brazil's independent oil producers set to benefit from sharing Petrobras' gas infrastructure

Brazilian federal oil giant Petrobras started operations last week under contracts with Petrorecôncavo, Origem Energia and 3R Petroleum for access to the outflow and processing infrastructure at the Catu natural gas treatment unit in Pojuca, Bahia. 

The contracts replace a transitory solution known as a commercial swap, in effect since January 2022, which made it possible for the independent producers to serve the natural gas market before accessing Petrobras' infrastructure.

According to sector watchdog ANP, Catu has the capacity to treat 2Mm3/d (million cubic meters a day) of natural gas.

The CEO of Origem Energia, Luiz Felipe Coutinho, said access to the Catu gas treatment unit is key to independent producers in Bahia state. 

However, that is just an intermediate solution for Origem, which plans to start operations of its own infrastructure within the next two years. 

“We understand that only by owning the infrastructure can we sell the natural gas with competitive pricing, high flexibility, and low penalties,” Coutinho told BNamericas. 

The size of the investment will depend on how ANP categorizes Origem’s gas, which is produced in the Tucano Sul basin.  

“The Tucano gas is very rich, so we could have a simpler treatment unit, which would make it ready to be injected into TAG's transportation [pipeline] grid,” Coutinho said. 

Origem Energia currently produces approximately 1.3Mm3/d of natural gas, and it expects to significantly increase output in the coming years, according to the executive. 

Through its press office, 3R Petroleum told BNamericas that the new contract gives the company greater commercial, financial and legal efficiency by allowing access to the gas processing infrastructure via service contracts. 

“In addition to better monetizing the sale of gas, 3R will also be able to monetize the liquids extracted from processing. And, with the end of the swap, the company will gain commercial flexibility and optimize contractual conditions, with positive financial effects,” 3R said. 

Despite the progress since the introduction of the new regulatory framework for Brazil’s natural gas segment, there are still several bottlenecks for accessing essential infrastructure. 

“3R will seek to adjust all of its contracts, aiming to increase financial and operational benefits, as well as to actively participate in the change brought about by the opening of the gas market,” the company said. 

The company produced 672,000m3/d of natural gas in 2022, with about a third coming from its Recôncavo hub in Bahia. 

BNamericas also contacted PetroRecôncavo, but the company declined to comment because it is in a quiet period prior to the release of its 4Q22 financial results.