Driven by pre-salt, oil becomes Brazil's top export
Oil closed 2024 as Brazil's leading export, surpassing soybeans. Crude oil and mineral oil exports totaled $44.8 billion, according to data released last week by the Foreign Trade Secretariat of the Ministry of Development, Industry, Trade, and Services.
Crude oil is primarily composed of hydrocarbons, which account for 98 percent of its total composition. Minor constituents include sulfur, nitrogen, and oxygen, while trace amounts of metals such as vanadium, nickel, sodium, calcium, copper, and uranium are also present.
Brazil's top export in 2024 was crude oil, accounting for 13.3 percent of the country's total exports. It overtook soybeans, which saw their share drop by 3 percentage points, from 15.7 percent in 2023 to 12.7 percent in 2024. Soybean exports generated $42.9 billion in 2024, down from $53.2 billion in the previous year.
Oil extracted from the pre-salt layer was the key factor behind oil's rise to the top of Brazil's export list. According to Brazil´s National Agency of Petroleum, Natural Gas, and Biofuels (ANP), the country produced an average of 36.9 million barrels of oil per day from January to November—the latest available data—with 71.5 percent of this output coming from the pre-salt layer. In the second half of the year, this share increased to 80.3 percent.
History of the pre-salt
Discovered in 2006, pre-salt oil has played a pivotal role in bolstering Brazil's energy sovereignty, eliminating the need for imports. In addition to its high productivity, the reserves contain light oil, renowned for its excellent quality and high commercial value.
Production began in 2008 in the Jubarte Field, located in the Campos Basin in southeastern Brazil, encompassing the coasts of Rio de Janeiro, São Paulo, Paraná, and Santa Catarina. The reservoirs in this region lie at depths of 5,000 to 7,000 meters. To put that into perspective, 7,000 kilometers is approximately the height of the Andes' tallest peaks.
According to ANP, 69 percent of Brazil's pre-salt oil production comes from the Tupi, Búzios, and Mero fields, all located in the Santos Basin. Tupi, the country's largest producing asset, was the first to begin production in the Santos pre-salt region and reached 1.1 million barrels per day in the third quarter of 2024.
The history of pre-salt exploration and production is closely tied to Petrobras, the state-owned company that, in November 2024, accounted for 98 percent of Brazil's oil production, including wells operated in consortium. Approximately 80 percent of the company’s total production comes from the pre-salt fields.
Key oil companies operating in consortium with Petrobras include multinational giants such as Shell (Anglo-Dutch), TotalEnergies (French), and CNOOC (Chinese).
According to Petrobras, the pre-salt, which is expected to reach peak production in the 2030s, plays a strategic role in the energy transition. The comnpany states that the technologies it has developed allow the oil extracted from the pre-salt to have carbon dioxide (CO₂) emissions—one of the main contributors to the greenhouse effect and global warming—that are 70 percent lower than the global average.
Geology
Petrobras explains that the pre-salt is sedimentary rock formed over 100 million years ago during the separation of the South American and African continents. This geological event created large depressions that eventually gave rise to several lakes, which were later connected to the oceans.
"In the deepest regions of these lakes, large quantities of organic matter from microscopic algae began to accumulate. This organic matter, combined with sediments, formed the rocks that give rise to pre-salt oil and gas," the company's website explains.
"Due to the arid climate at the time, intense evaporation of seawater led to the accumulation of salts, creating the pre-salt layer. This layer acted as a protective barrier, preventing the oil from escaping and reaching the surface," the website adds.
Technology
The distance of the pre-salt reservoirs from the coast and their depth posed significant challenges for Petrobras in terms of locating, extracting, and transporting the oil to the continent. To overcome these logistical and exploratory difficulties, the company developed advanced technologies. One example is a processing technique that allowed for a clearer understanding of the position of the pre-salt rock.
Throughout its journey in pre-salt exploration and production, Petrobras has received multiple awards from the Offshore Technology Conference (OTC), a leading global research hub for offshore exploration, in recognition of its technological innovations. The company was honored in 2015, 2019, 2021, and 2023.
One of the technologies used in the Búzios field is systematic 4D seismic acquisition. "By emitting ultrasonic waves that reflect off the reservoir and return with data, we can determine its height, length, and depth, gradually building a detailed image of the reservoir," the company explains.
"Through systematic seismic surveys and detailed studies of the reservoir's configuration, one can determine the next steps, such as where to drill specific types of wells, optimizing production and reducing costs,” it adds.
Among the most advanced technologies today are those that reinject CO₂ resulting from production back into the reservoir. This approach helps prevent the release of pollutants into the atmosphere and reduces the company's “carbon footprint.”
Revenues
The discovery of the pre-salt was so significant for Brazil's oil production potential that it led the government to change the regime that authorized companies to explore the submerged resources.
As a result, the pre-salt areas are governed by the sharing regime. Under this model, surplus oil production—the balance after covering costs—is divided between the company and the Brazilian government. During the auction that authorizes exploration, the company offering the highest share of profits to the federal government is granted the right to explore.
This is distinct from the concession model, which applies to the post-salt period. In this system, the risk of investment and exploration lies with the concessionaire, who becomes the owner of all the oil and gas that may be discovered. In return, the company pays royalties and special participation fees, particularly for large production fields, in addition to a signature bonus upon winning the auction.
Alongside the sharing model, the state-owned company Pré-Sal Petróleo (PPSA) was established, under the Ministry of Mines and Energy, to represent the Brazilian government in receiving the generated revenues.
In 2024 alone, PPSA received BRL 10.32 billion from the sale of the government's oil and natural gas stakes in five production sharing contracts and a production agreement in the Tupi field. This amount represents a 71 percent increase compared to the BRL 6.02 billion collected in 2023.
According to the state-owned company, projections suggest that by 2034, the government will have accumulated BRL 506 billion in revenues.
New frontiers
With the pre-salt expected to reach its peak in the 2030s, Brazil's oil industry, led by Petrobras, is shifting its focus to new oil frontiers that are believed to hold significant production potential.
One such frontier is the so-called equatorial margin, located off Brazil's northern coast, where exploration is pending a favorable decision from the Brazilian Institute for the Environment and Renewable Natural Resources (Ibama), an agency under the Ministry of the Environment and Climate Change.
Another promising region is the Pelotas Basin, located off Brazil's southern coast. The growing interest in this area is fueled by the discovery of oil wells in Uruguay and off the coasts of Namibia and South Africa. Experts suggest that the geological conditions in these regions are similar, as the continents were once joined tens of millions of years ago.
According to Petrobras, the company plans to invest $79 billion in exploring new oil and gas frontiers by 2029. Of this amount, 40 percent will be allocated to the South and Southeast regions, 38 percent to the equatorial margin, with the remainder directed towards other countries.
