Brazil is an offshore oil and gas powerhouse, and it plans to double down on its status with a new investment program designed to turn it into the number-four oil producer worldwide.
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More than 90 percent of Brazil’s oil and gas production comes from offshore resources, and the vast majority from waters off Rio de Janiero. The administration of President Ignacio Lula da Silva intends to expand on the sector’s strength with the “Potencializa E&P Programme,” a development plan that will be debuted shortly.
The program’s focus is on frontier areas which have never been developed; fields that are known but would require a new approach to be economically viable; and maturing fields with declining production.
In addition to boosting output, the objective is to extend the benefits of the oil and gas boom to Brazil’s regions. The pre-salt reservoirs off Rio dominate the industry, but the government believes that there is strong potential in waters along the nation’s northern coast, which have yet to be fully explored.
“We need to take advantage of the wealth of the Brazilian people that is underground. Without measures to promote its exploration and production, there are no jobs, income or regional development,” said Brazilian Minister of Mines and Energy Alexandre Silveira. “We have a window of opportunity, we cannot miss the new pre-salt that may be on the equatorial margin and that will be the passport to the future of the north and northeast regions of Brazil.”
With expanded investment in E&P, including private participation from foreign investors, Brazil hopes to expand output from 3.0 million bpd today to 5.4 million bpd by 2029. New projects are required to sustain current levels of production as well as prepare for expansion, Silveira’s department noted.