Brazil oil production surpasses United Arab Emirates output

Brazil produced an average of 2.94Mb/d (million barrels a day) of oil in 2020, surpassing output of Opec’s third largest oil producer, the United Arab Emirates (UAE), which produced 2.779Mb/d.

According to latest data from local watchdog ANP, Brazil’s production was up 5.5%, compared to 2019 output of 2.785Mb/d.

Production that year was 300,000b/d lower than the UAE’s, but already 107,000b/d higher than Kuwait’s, which was Opec’s fourth largest oil producer, behind Saudi Arabia, Iraq and the UAE. 

In 2017 and 2018, the production of the UAE and Kuwait was 2.7Mb/d and 2.9Mb/d, respectively, compared to Brazil’s 2.6Mb/d. 

Brazil’s growth was mainly driven by NOC Petrobras’ pre-salt fields like Tupi (formerly Lula) and Búzios in the Santos basin over the past decade. 

With four FPSOs operating, Búzios has overtaken Sapinhoá as the country’s second largest field and is on track to become the biggest producer as Petrobras plans to install up to eight new production platforms in the area. 

The NOC’s 2021-25 strategic plan foresees first oil from 13 FPSOs, including Búzios’ next four units. Two units – Guanabara in the Mero field and Carioca in Sépia – are scheduled to come online this year. 

Meanwhile, operators like Equinor and Shell are expecting first oil at the Bacalhau and Gato do Mato offshore fields this decade. 

Still, Brazil has not yet recovered to pre-pandemic production. January 2020 output had reached a record 3.1Mb/d.

In a recent report, S&P Global Platts said it expected Brazil to add about 120,000b/d of oil year-on-year in 2021 and 150,000b/d in 2022, driven by the ramp-up and start of pre-salt projects. 

ANP projects offshore oil production in 2021 will average 3.08Mb/d, while onshore output is expected to total 97,000b/d. 

NATURAL GAS 

According to the regulator, national gas output was 127Mm3/d (million cubic meters) in 2020, up 4.1% from a year ago. It projects 2021 offshore and onshore output will average 108Mm3/d and 21Mm3/d, respectively.