Investment in Brazil’s oil exploration to reach BRL 21 bi by 2027
Brazil’s oil, natural gas, and biofuel authority ANP has estimated investments adding up to BRL 21 billion by 2027 in oil and natural gas exploration. Of this, 94 percent will be directed at drilling.
The data were disclosed Wednesday (Jul. 19) during the presentation of the Annual Exploration Report 2022 – Diagnosis and Perspectives for Oil and Natural Gas Exploration in Brazil.
According to the document, BRL 11 billion in investments are planned for the offshore basins in the Equatorial Margin and BRL 8.5 billion for the Eastern Margin. The basin at the mouth of the Amazon should have the largest volume of investments, followed by the Campos and Santos basins.
At the end of last year, the number of blocks under contract in the exploration phase was 295—up 24 percent from 2021’s 238. A total 157 blocks were located in onshore basins and 138 offshore. One of the drivers behind this surge, Montez argued, was the average price of a barrel of oil at $100 in 2022.
The exploration phase begins with the signing of the exploration and production contract. At this stage, the areas are called blocks, and companies conduct studies and activities such as seismic surveys and drilling to find out whether there is enough oil and natural gas for extraction.
If so, the company notifies the agency and the block becomes a development area, which is when the production phase kicks off. Otherwise, the company may choose to return the block to the authority.
