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Brazil's Energy Industry

Brazil

in figures

Oil reserves11.9 billion barrels

Oil production2.99 million bopd

Gas reserves300 bcm

Gas production24.3 bcm

Brazil: A Model for Offshore Development

Brazil’s oil and gas industry has grown significantly due to the country’s massive hydrocarbons potential. The nation has the second-largest reserves in South America after Venezuela, with more than 95% of its oil and gas offshore. The nation boasts the largest recoverable ultra-deep oil reserves in the world, with the International Energy Agency forecasting that 50% of the world’s offshore oil could come from Brazil in 2040.

The industry is overseen by the National Agency of Petroleum, Natural Gas and Biofuels, known as ANP, which hands out exploration and production licences and ensures compliance with state regulations. Hydrocarbons are produced predominantly by Brazilian NOC Petrobras. The company held a monopoly on the industry for around 40 years until the market opened up in 1997. Since then, the sector has attracted super-majors such as Shell, BP, Chevron and Exxomobil and local independents.

A rise in production from the prolific Santos and Campos basins has also played a part in attracting IOCs to Brazil’s downstream sector. To attract FDI and participation in the market, Petrobras recently began selling off a predominant part of its refining capacity. While Petrobras remains the largest player in the local downstream sector, it has been joined by international players Repsol, Shell and Chevron.

Due to the country’s large size, a vast pipeline infrastructure is necessary to link the various oil-producing regions, refineries, terminals and distribution points. Most of the country’s pipelines are located in the southeast and northeast of the country. The nation’s midstream sector is supervised and controlled by the National Centre for Logistics Management.

While still one of the world’s largest oil and gas producers, Brazil’s renewable energy sector has seen titanic growth and accounts for around 80% of the country’s energy mix, predominantly through its hydropower stations and biofuels and waste facilities. Brazil is the third largest hydroelectricity producer after China and Canada. The government is looking to grow the mix of solar and wind facilities to meet its large potential and avoid losses caused by droughts.

Vale completes Brazilian renewables acquisition
NEWS
Brazil - March 28, 2024

Brazilian mining giant Vale has taken full ownership of renewable energy company Aliança Energia.

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Westlawn joins Enauta in $1.5-billion Brazilian block
NEWS
Brazil - March 25, 2024

Westlawn has bought a 20% stake in BS-4 block offshore Brazil from Enauta for $300 million.

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Spain’s Iberdrola to invest €41 billion in electrification
NEWS
Multinational - March 21, 2024

Iberdrola plans to invest EUR 41 billion in electrification over the coming three years, including expanding power grids in the…

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Growth through diversification in the chemicals sector t_Faisal-MALALLAH
Interview
Kuwait - March 12, 2024

Faisal Malallah of Al Kout Industrial Projects talks about Kuwait's market for chemical products.

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Brazil maps

Exploration and Production in Brazil’s Pre-Salt Polygon 2019

    ALL MAPS
    Equinor launches production at 531-MW Brazil solar plant
    NEWS
    Brazil - March 08, 2024

    Equinor has brought its 531-MW Mendubim solar plant on line in Brazil, as it aims to double renewable power generation in 2024.

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    BW Energy reaches first oil at Gabon play
    NEWS
    Gabon - March 08, 2024

    BW Energy has launched production at the Hibiscus South play offshore Gabon just five months after its discovery.

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