Spotlight: Brazil’s onshore oil and gas outlook

Over 20 onshore oil and gas production projects are expected to be deployed in Brazil by the end of 2025, according to data from the local independent oil companies’ association ABPIP shared with BNamericas. 

The undertakings involving new fields will be carried out in the states of Alagoas, Bahia, Espírito Santo, Rio Grande do Norte and Sergipe.

Three projects will be based in the Jacaré field, in the Recôncavo basin, in Esplanada, Bahia (Block REC-T-99).

Nine projects will be in the Sergipe municipality of Santo Amaro das Brotas and the Rio Grande do Norte municipalities of Governador Dix-sept Rosado, Mossoró and Felipe Guerra.

Two projects will be in unspecified locations in Alagoas and Bahia states; five will be in Couripe, in Alagoas; two in Jaguaré, Espírito Santo, and the remaining two have unspecified locations.

“This movement highlights the strengthening of onshore exploration, which can contribute significantly to the creation of local jobs and the development of regional economies,” ABPIP’s president Márcio Félix told BNamericas. 

Next year will also mark progress in projects to revitalize mature fields in Rio Grande do Norte, seeking to extend their useful life and improve production efficiency, for example by using vented gas in the wells to generate energy. 

Another important milestone, still in the planning stage, will take place in Alagoas with the first underground natural gas storage (ESGN) project in the country. The undertaking is the result of a joint venture between Origem Energia and Transportadora Associada de Gás (TAG) and involves an expected investment of US$200mn. 

There is also the continuation of activities started in 2024 in the Espírito Santo basin and the development of a project to drill an exploratory well in the Parnaíba basin, which open up opportunities for the discovery of new reservoirs.

“These projects and investments demonstrate the commitment of independent operators to seek innovation and sustainability in order to expand production capacity and promote exploration, generating opportunities to strengthen the onshore E&P industry in Brazil,” said Félix. 

Capex

The onshore E&P segment in Brazil projects investments of approximately US$575mn through 2025, according to data published in watchdog ANP's exploratory work plan and annual work programs and budgets, released in January this year, and shared by ABPIP with BNamericas. 

Onshore exploration will receive US$15mn, with a focus on seismic data and the drilling of exploratory wells. The projects include the acquisition of 55km of 2D seismic and 23km2 of 3D seismic requiring a total of US$7mn, as well as the reprocessing of 120km of 2D seismic and 60km2 of 3D seismic, requiring US$99mn. 

A survey of 2,000km of new seismic data is also planned, with investment of US$15mn. 

In terms of drilling, 16 exploratory wells are planned, with an investment of US$38mn, and two well tests with investments of US$28mn and US$1mn, respectively.

Onshore production in 2025 is due to see capex of US$387mn, mostly earmarked for drilling and recompletion, with the aim of increasing the efficiency and profitability of well production in the Potiguar and Recôncavo basins. 

In the Potiguar basin, 323 new wells are planned with investment of US$191mn, while in the Recôncavo basin 35 wells will be drilled with investment of US$95mn. 

In terms of well recompletion, the highlights are the Recôncavo basin, with 130 recompletions and investment of US$58mn, and the Potiguar basin, with 173 recompletions and investment of US$31mn.

With investment of US$37mn, decommissioning will include the permanent abandonment of wells and the environmental recovery of operational areas. 

Most of the work will be in the Solimões, Sergipe, Espírito Santo and Recôncavo basins with US$12mn earmarked for Solimões, US$9mn for Espírito Santo, and US$8mn for Recôncavo and Sergipe.

Players

According to the latest ANP data, onshore production in Brazil in September averaged 263,000boe/d through 5,933 wells. 

Onshore output for 2025 is forecast at approximately 252,000boe/d, according to the regulator. 

Among the main onshore producers are Petrobras, Brava Energia, Petrorecôncavo, Eneva, Origem Energia, Carmo, Seacrest and Alvopetro. 

State-owned Petrobras is the operator of the two onshore producing fields with the highest accumulated oil and gas output in the country (Leste do Urucu and Rio Ucuru).

Brazil's 20 onshore fields with the highest total accumulated production in millions of barrels of oil equivalent

Source: ANP

There are a total of 279 onshore exploration blocks under contract, of which 122 are operated by Elysian Petroleum, 34 by Petro-Victory, 24 by Imetame, 22 by Eneva and 18 by Origem Energia. 

Other operators of onshore blocks include Brava Energia, TOG Brasil, Geopark, Petroil, BGM, Petroborn, Rosneft, Capixaba Energia, Great Energy, Níon Energia, NTF, Perbras, Petrorecôncavo, Phoenix Óleo e Gás, Ubuntu, Alvopetro, Cemes, Guindastes Brasil and Vipetro.

Of the total blocks contracted, 151 are in the Potiguar basin, 33 in the Recôncavo basin, 28 in the Alagoas basin, 26 in the Espírito Santo basin, 16 in the Parnaíba basin, nine in Tucano Sul, six in the Paraná basin, three in the Amazonas basin, three in the São Francisco basin, three in Solimões and one in Mucuri.