Proper management tactics in the energy sector are essential for the prosperity of any country, no matter the level of its development. Energy lies at the core of every modern economic activity. This is why to reach or maintain a sufficiently high level of development, it is of paramount importance to ensure secure access to oil and gas at affordable prices. The use of energy is of great importance for the proper functioning of every developed economy.
Two of the major energy sources in the world are oil and gas. The extraction of these fossils began in the 1950’s, when the first facilities were anchored on the seabed. Since 1970’s, oil and gas extraction has moved to large depths in the open sea, which lead to the design and construction of floating rigs and the neverending plans for bigger and bigger offshore projects.
Offshore oil and gas projects can be expensive and slow, but they have a long life and relatively low operating costs. It looks like one of the most stable segments of the full industry in this unprecedented crisis, which the world is currently experiencing.
The Oil and Gas industry of Brazil
The Brazilian energy usage that comes from oil and gas currently is estimated at about 15%. At the end of the first quarter of 2020, the South American country produced just under 3 million barrels of oil and just over 120 million m3 of gas per day. The total reserves that have been proven are about 12,7 million barrels of oil and about 365 million m3 of gas per day.
The Oil and Gas industry of Brazil is very mature, offering innovation and lucrative opportunities for all sorts of companies. The country is number 1 oil producer for South America and the 9th largest in the world. It is the 15th largest country in terms of proven oil reserves and is the 7th biggest oil consumer on the planet.
The largest country in South America has a huge potential for investors. Brazil offers the world’s most prolific offshore potential. The potential growth of oil and gas production by 2030 has been estimated at 5 million barrels per day. The oil production is mainly offshore with about 95% representation. The largest oil and gas company in Brazil is Petrobras, which owns 93% of the county’s oil and gas production.
Petrobras has budgeted 55 billion US dollars for its projects in the next 5 years, with 46 billion US dollars of the sum allocated to offshore oil and gas production. Around two-thirds of that amount will be allocated to the company’s offshore Brazil projects.
Upcoming offshore oil and gas projects in Brazil
There are about 30 offshore oil and gas projects currently planned across South America. The projects are expected to be completed within the next 3 years. Brazil is one of the major offshore producing countries in the region and together with Guyana will account for over 30% of the offshore investments. Therefore, the Latin region is predicted to become the biggest offshore player by 2030.
Some of the upcoming offshore oil and gas projects in Brazil include:
- Libra oil field – this is an ultra-deep-water project and the largest oil field in the Latin country. It is located in the Santos Basin. Currently, the Libra oil field project is in its development phase with an estimated date of completion in 2021. It is predicted that the project will have a huge positive impact on the country’s offshore oil and gas market.
- Frade field revitalization – PetroRio, which is one of the largest Brazilian oil companies, plans a revitalization project of the Frade field, by the end of 2021. The field is located off the country’s southeast coast.
- Interconnection of the Polvo and Tubarão Martelo fields – currently PetroRio is carrying out the interconnection project of the 2 fields. The fields are located in the Campos Basin. The completion date of the project is expected to be 2021.
- Búzios field – the deepwater offshore field operated by Petrobras with a 90% share will undergo major development. The reason for that is the recent discovery of oil with excellent quality. The field is at a water depth of nearly 2 kilometers.
- Mero-3, Mero-4, Itaipu, and Buzios-6 – also expected to be given green light within the next few years.
3 Comments
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