NEW REPORT: Why Brazil is Latin America's new oil and gas crown jewel

Despite the disappointing results of licensing rounds this week, Brazil's oil and gas sector is in the midst of a veritable a boom. In addition to record production levels, investment opportunities are multiplying, spurred by regulations that have become more friendly to private companies in the past three years.

SEE THE FULL REPORT HERE

The wave of drilling rights auctions – including an established schedule for the next two years – promises to continue wooing oil and gas companies of all sizes. “The pre-salt rounds will continue to attract the interest of the big companies because those areas demand a gigantic capital outlay," says Adriano Pires, director of the Brazilian Infrastructure Center (CBIE), in Rio de Janeiro. "But there are also mature shallow water areas that are attracting medium-sized companies and onshore acreage that is the focus of smaller firms."” 

The busy auction schedule means that infrastructure investments are becoming increasingly urgent. The need to build new pipelines and expand refinery capacity will grow in tandem with rising production levels.  To this end, the ambitious divestment program of state-run oil company Petrobras will continue to lure major international investors. 

Brazil is also set to benefit from uncertainty in neighboring markets. A decision to halt new licensing rounds by Mexican President Andrés Manuel López Obrador and a change in Argentina's political landscape indicate that Brazil will capture a growing portion of Latin American hydrocarbon investments in the coming years. 

In this report we will outline the sector's production projections and identify opportunities for investments – both in exploration and production [E&P), and infrastructure. Finally, we will analyze the potential of the onshore areas following recent regulatory changes.