Brazil expects US$78bn in O&G investments by 2023

Brazil expects investments of around 300bn reais (US$78.3bn) for oil and gas production development by 2023, according to regulator ANP.

The country’s oil output could then reach 3.75Bb/d of oil and almost 168Mm3/d of natural gas. For this year, average production of oil is expected to reach around 2.9Bb/d of oil and 131Mm3/d of natural gas, which could grow to 3.3Bb/d of oil and nearly 144Mm3/d of gas next year.

During 2019-23, production activities are expected to demand at least 14 platforms, 1,169 well drillings, and 2,776 well completion activities. Decommissioning activities of older fields will increase as 325 wells will be closed.

Investment figures could still go up as the country will hold more bidding rounds during the second half.

In September, Brazil will start the first phase of its permanent offer system, followed by the 16th bidding round on October 10. A transfer-of-rights surplus auction is penciled in for November 6, and the 6th pre-salt auction the day after. 

Anderson Dutra, an associate member at consultancy KPMG, told BNamericas the auctions present an opportunity for companies of all sizes to increase activities in the country.

“An important movement to attract the market’s attention to Brazil is the higher predictability in the tenders. The permanent offer, for example, is an opportunity for smaller companies to position themselves in Brazil and also for the country to start developing different areas, such as the Northeast onshore basins,” Dutra said.

Besides, state-run Petrobras‘s divestment plan is also helping to attract new firms to Brazil. This year, the company has already sold fields to Malaysia’s Petronas, Britain’s Trident Energy, Australia’s Karoon and Norway’s BW Offshore, all of which will start producing soon. Those companies are also expected to invest to increase output on the midlife assets.