Brazil

Brazil's government-owned oil sales to climb sharply, official says

Reuters
05/05/2022 14:40
Visualizações: 1245 (0) (0) (0) (0)

Brazil's direct sales of crude will more than double this year and rise sharply this decade, as oil majors deliver more of their output to the government under production sharing agreements, according to a state official.

 

Government-owned volumes, until now nearly irrelevant, are ramping up and will reach 1.127 million barrels per day (bpd) by 2031, according to Eduardo Gerk, head of Pré-Sal Petróleo SA (PPSA), the state-run company that oversees the country's production-sharing contracts.

 

"Our scale of magnitude has started to change," he said on the sidelines of the Offshore Technology Conference (OTC) in Houston.

 

PPSA was created in 2013 to manage Brazil's stake in the vast pre-salt oil discoveries found off its coast.

 

The state's share of the oil comes from fields run by Shell Plc , TotalEnergies SA (TTEF.PA) as well as state-controlled oil producer Petrobras (PETR4.SA). They are newly delivering higher volumes under production sharing regulation the country inaugurated last decade.

 

PPSA has sold all of the 9.5 million barrels it expects to receive from commitments this year, in 19 shipments delivered to Petrobras. And as new wells go on stream, annual volumes should jump to 411 million barrels of oil in 2031, Gerk said.

 

Petrobras thus far has bought all of PPSA's allotted oil through competitive auctions in two-to-three year contracts, outbidding Shell, Total, Portugal's Galp and Chinese producers.

 

Future auctions will likely be held through Brazil's stock exchange operator B3, Gerk said, that will handle government-owned production that should average 95,000 bpd in 2024, he said.

 

However, hiring a trading firm to market the oil also is a possibility, Gerk said.

 

"We will have to review market conditions then," he said.

 

The next big slug of Brazil's oil to be sold will come in mid-2024, when Petrobras contracts from its massive Buzios and Mero fields start to expire, Gerk said. Future production from Sepia, Atapu, Itapu and Bacalhau fields also is yet to be marketed, he said.

 

Brazil produces about 3 million bpd of crude today, with the government stake responding for less than 1% of the total. The government stake is projected to rise to about 20% of the country's total production in 2031, when total country production is estimated at more than 5 million barrels per day of crude, Gerk said.

 

The government's oil volumes include a stake of the Mero deepwater field, where consortia among Brazil's Petrobras, Shell and China's CNOOC and CNPC on Monday started production. The group's platform is designed to pump up to 180,000 bpd of crude.

Most Read Today
see see
International Women's Day
Women in the Electric Sector: Driving Advances and Trans...
10/03/25
Merger
Saipem and Subsea7 join forces to create Saipem7
25/02/25
Royalties
Values related to December's production for production-s...
24/02/25
Drilling Operations
Constellation Oil Services Holding S.A. announces intent...
21/02/25
Permanent Offer
CNPE Approves Inclusion of Four New Pre-Salt Blocks in t...
21/02/25
Royalties
Values related to December production for concession and...
21/02/25
Natural Gas
Eneva and Samarco Sign Contract for Natural Gas Supply i...
21/02/25
Results
Four FPSOs operated by MODEC rank among the 10 largest o...
20/02/25
Record
Fulkrum Achieves Record Growth in 2024 with Global Expan...
20/02/25
Results
Foresea Closes 2024 with a Net Profit of $18 Million and...
20/02/25
Results
Sergipe Maintains 1st Place in the Free Gas Market Ranking
10/02/25
International Company News
Interocean awarded Morgan, Mona, and Morven Offshore Win...
06/02/25
Natural Gas
ANP approves prior consultation aiming at new regulation...
06/02/25
Permanent Offer
Permanent Sharing Offer (OPP): ANP approves update of th...
06/02/25
Paraná
Renewable energy with savings of up to 35% drives the ex...
06/02/25
Pre-Salt
PPSA launches a new spot sale process for Union oil carg...
06/02/25
RD&I
Research Discovers Enzyme That Converts Corn Ethanol Dis...
06/02/25
Results
Petrobras reaches 2024 annual production target
28/01/25
International Company News
Pipetech Launches Game-Changing Downhole Scale Remediati...
28/01/25
Geology
Investments totaling R$ 271 million are boosting researc...
28/01/25
RD&I
Miniaturized devices are poised to transform oil extract...
28/01/25
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.