Oil production in Brazil reached a new high in August 2024, with Union-managed production surpassing 89,000 barrels per day (bpd). This growth includes a substantial output from production-sharing contracts and areas under Individualization of Production Agreements (AIPs), strengthening Brazil’s position as a significant global oil producer. In tandem, natural gas production also saw an uptick, reaching 182,000 cubic meters per day, a 3.8% increase from July. These figures, released by Pré-Sal Petróleo S.A. (PPSA), highlight Brazil’s strategic expansion in energy resources under the Ministry of Mines and Energy (MME).
Record-Breaking Oil Production in August
In August, Union-controlled oil production hit 89,000 bpd. Of this total, 84,290 bpd originated from eight production-sharing contracts, while an additional 5,140 bpd came from AIPs in the Tupi and Atapu non-contracted areas. This growth reflects a 4% rise over July’s production levels, largely driven by the operational return of platform P-74 in the Búzios field after scheduled maintenance. With this achievement, the Union solidifies its standing as the sixth-largest oil producer in Brazil—a position expected to strengthen further as production increases in the coming months.
Production-Sharing Contracts: Key Drivers of Growth
Brazil’s production-sharing model has played a vital role in maintaining a steady output of around 1 million barrels of oil per day, with eight active contracts driving this growth. The Búzios field continues to dominate as the country’s largest oil producer, with an output of approximately 447,000 bpd. It is closely followed by Mero, producing 317,000 bpd, and Sépia, with a daily output of 97,000 bpd. This structure ensures that the Union captures a significant share of Brazil’s oil resources, reflecting a sustainable and productive model for managing national energy assets.
In addition to oil, Brazil’s natural gas production under these contracts has remained strong, particularly for export. In August, total natural gas output available for export under production-sharing reached nearly 4 million cubic meters per day (m³/day). The Búzios field led the way, producing 3.42 million m³/day and accounting for 84% of Brazil’s gas exports. From this production, the Union received an allocation of 118,000 m³/day.
The Impact of the Búzios Field
The Búzios field has emerged as a critical component of Brazil’s energy landscape, responsible for much of the country’s oil and gas output under production-sharing contracts. The platform P-74’s successful maintenance and swift return to production contributed substantially to August’s record-breaking numbers. Given its production volume, Búzios is poised to remain central to Brazil’s energy strategy, supplying significant quantities of both oil and natural gas. As the world moves toward cleaner energy, Brazil’s oil and gas sectors remain crucial for ensuring energy security and supporting economic growth.
Future Outlook for Brazil’s Oil and Gas Production
With steady growth in Union-controlled oil and natural gas production, Brazil is well-positioned to continue expanding its share of the global energy market. The PPSA’s Monthly Production Bulletin suggests a trend of increasing output, driven by efficient operations and robust infrastructure management. As Brazil continues to invest in its energy infrastructure, further expansions in both oil and gas production are expected.
This increase in production not only bolsters the national economy but also positions Brazil as a pivotal energy supplier in the global market. The strategic focus on optimizing production-sharing agreements and maintaining high standards of operational efficiency in fields like Búzios and Mero ensures that Brazil can meet both domestic energy demands and contribute to international markets.
Conclusion
August 2024 marked a milestone for oil and natural gas production in Brazil, highlighting the effectiveness of its production-sharing contracts and efficient management of key energy fields. With its continued expansion, Brazil is setting itself apart as a leading energy producer. The successful integration of infrastructure, policy, and operations reinforces the country’s capacity to sustainably manage its natural resources and drive economic progress. As Brazil’s energy landscape evolves, its commitment to growth, security, and sustainability in oil and gas production positions it for a resilient future.