Overview

Brazil is Latin America’s top oil producer. The country owns the largest ultra-deep oil reserves in the world, with 95.1% of Brazil’s oil production produced offshore.  The 2023 average oil production was 3.4 million barrels per day, 12.57% higher than the previous annual record in 2022, totaling 1.2 billion barrels of oil and 54.7 billion cubic meters of natural gas, according to ANP (The Brazilian National Agency for Petroleum, Natural Gas and Biofuels). Brazil’s deep water pre-salt fields accounted for 76% of national production. 

Table 1: Oil, Gas and Oil Equivalent Production Data - Brazil 
 

Table 2: Production Data by Environment by year (Mboe/d)

Source: Translated and adapted from ANP “Encarte de Consolidação da Produção 2023” - Yearly bulletin on production.

Brazil’s 2024-2034 Energy Expansion Plan forecasts that the country’s oil production will reach 4.4 million barrels of oil per day by 2034. Onshore production is expected to grow by 46% in the next 10 years, reflecting production enhancements of mature fields and the growth of independent oil companies within the onshore market.  Brazil’s 2023 natural gas (NG) production was 149.8 million cubic meters/day - up 8.6% from 2022. The average NG supply in 2023 was 47.74 million m³/day (discarding losses, gas reinjection, burn, and E&P consumption). NG domestic production represented approximately 77% of Brazil’s supply, while imports from Bolivia reached 25%, followed by Liquefied Natural Gas (LNG) imports at 2.9%. 

The United States was the largest LNG exporter to Brazil in 2023 supplying 1.04 million m³, representing 79% of the total imports. Common challenges facing the Brazilian gas market include high percentage of associated gas, reinjection rates for increased oil recovery, long distances from the offshore gas fields to the coast, limited gas pipeline infrastructure, and the need to boost domestic demand. Significant energy reforms, frequent oil field finds, and the opening of oil bidding rounds have attracted International Oil Companies (IOCs) from around the world. IOCs have acquired oil field concessions, gas pipeline networks, and are developing LNG terminals.    

The EPE 2034 Energy Expansion Plan (PDE) forecasts oil and gas exploration and production (E&P) investments to reach US$435 billion, representing 78% of all investments in the energy sector for the next 10 years. These figures reflect an evaluation of aggregated investments of all E&P in Brazil, including those from national oil company Petrobras. Other relevant investments on refined products’ supply are forecasted to reach over US$22 billion, while future investments in natural gas are expected to reach US$3 billion.

In line with climate commitments, oil operators are seeking to increase efficiency while reducing the industry’s carbon footprint. The Brazilian National Oil and Gas Regulator (ANP), which oversees oil operators’ mandatory R&D spending, will prioritize projects focused on hydrogen, biofuels, energy storage, and digital transformation, among others, in line with a recent Brazilian Energy Policy Council resolution. ANP has recently reported that in the last three years, artificial intelligence, machine learning, smart completion, and CO2 capture have been the top focus categories for new R&D projects. A list of the R&D projects by oil operators, is available at ANP´s dynamic panel (in Portuguese).

Leading Sub-Sectors and Opportunities 

ANP keeps an interactive dashboard with information about forecasted investment in exploration activities as informed by the operators. Different types of activities can be sorted and grouped by main areas of assessment. Drilling and other well interventions represent the vast majority of the investments, followed by seismic and other geological assessments.

Pre-salt projects have the most investment from Petrobras, with significant opportunities for U.S. suppliers of offshore equipment and services. Most of the Brazilian Oil & Gas industry is dedicated to offshore production through a mature supply chain and several international companies established in the market. Equipment manufacturers and service providers with leading edge technology and cost-saving solutions are competitive and usually require local partnerships to increase the chances of success in supplying to Petrobras and other operators.

While the current unfavorable exchange rate is impacting price competitiveness, there is still high potential for U.S. exports of equipment and services. Additionally, the U.S. oil and gas industry enjoys an excellent reputation due to its advanced and innovative technology and expertise. Exporters should contact the U.S. Commercial Service in Brazil to discuss demand for specific products and services.

U.S. companies should also consider bidding on the Open Acreage Permanent Oil Block Offers organized by ANP. Since mid-2018, Petrobras has followed a new and more transparent bidding process decreed by Brazilian law. All tenders must be published in advance on the Petronect Portal. One improvement is the option for unregistered suppliers in the Petrobras system to submit bids. Should the bidder be selected, the company will be able to pursue the supplier’s registration process subsequent to the tender process. Still, U.S. oil and gas suppliers are encouraged to secure a supplier’s registration to facilitate contracting procedures with Petrobras.  

Petrobras’ recent divestment program for onshore and shallow water assets changed the landscape of this segment dramatically. Independent oil companies that acquired onshore fields increased the production of these assets, adopting new strategies based on vertical management models such investments in manpower and drilling rigs along with well intervention technologies to maximize the oil recovery of mature fields. More efficient equipment and processes are the top priorities of these companies that are optimizing operations by introducing new technologies and innovative business models to generate profit and sustainable growth.

Companies that invested in onshore assets are forecasting significant investments and expect to increase production over the next years. Consequently, this cycle has sharply increased the demand for new service providers and drilling equipment. According to ANP, in 2023, Petrobras was involved in 88.4% of Brazil’s total oil and gas production. Companies like Shell, Repsol Sinopec, Equinor, Karoon, and TotalEnergies, among other international and local independent operators share the remainder.

Petrobras´ current Strategic Plan (2025-2029) calls for an investment of US$98.2 billion of which 77.8% (US$76.4 billion) will be made in exploration and production (E&P) activities. New exploratory frontiers, such as the Equatorial Margin in the North and Northeast regions of Brazil and the Pelotas Basin in the South, account for a significant portion of such investments. The development of the pre-salt fields located in the Southeast of Brazil, which currently represent around 80% of Petrobras´s production, is also a big priority for the company in the upcoming years.

Decarbonization and Energy Transition

Petrobras has shown its deep commitment to energy transition by increasing its related budget by 42% to US$16.3 billion, representing 15% of the total CAPEX for the next five years. US$5.3 billion of that budget is allocated towards decarbonization of its operations to mitigate Scope 1 & 2 emissions. Deep and ultradeep water technological advancements have helped make Brazil’s pre-salt oil extraction among the least carbon-intensive in the world, registering around 40% fewer emission per barrel than the world average, according to Petrobras.  

Brazil has a consolidated experience with Enhance Oil Recovery (EOR) projects using CO2 to increase the overall pressure of oil reservoirs to increase production. Petrobras recorded 53.8 million tons of CO2 being reinjected into the pre-salt reservoirs from 2015 to 2023, preventing its venting into the atmosphere, in what is considered the world’s largest deep water Carbon Capture, Usage and Storage (CCUS). Such foundation of CCUS projects put the Brazilian oil & gas industry in a good position to expand its projects portfolio and search for profitable commercialization models.

In 2024, Petrobras started the first Carbon Capture and Storage (CCS) pilot project in Brazil. The facility, in the state of Rio de Janeiro, has the capacity to inject 100,00 tons of CO2 per year into a saline reservoir. The company aims to test cost reduction technologies and process safety to enable commercial-scale projects in different areas of Brazil.  

U.S. companies with expertise in CCUS, BECCS (Bioenergy with Carbon Capture and Storage), and other carbon storage technologies may find opportunities in Brazil, as the overall market for such expertise is growing and creating demand for innovative solutions. After the regulatory framework for Carbon Capture and Storage was approved by the Brazilian government in October 2024, new commercial CCS projects are expected to be announced, creating a demand for goods and services related to this industry. Technologies for industrial carbon capture (particularly for hard to abate sectors), transportation and reservoir infrastructure for the permanent storage of CO2 are some of the main demands of the sector for the development of such projects in Brazil.

Downstream

The downstream subsector is also expected to generate business opportunities, mainly related to refineries and gas processing units. Brazil holds the eighth largest refining complex in the world and the largest in Latin America (19 refineries) with Petrobras owning 11 refineries with the capacity of 1.9 MMbpd. Petrobras plans to invest over US$15.2 billion to expand its refining capabilities, retrofit its assets, improve efficiency gains, increase operational availability, lower energy intensity, and decrease emissions. The company also announced the investments in Fertilizers, Biorefining and expansion of logistics capacity within the downstream segment.

LNG Terminals in Brazil

There are eight LNG regasification terminals in operation in Brazil (two owned by Petrobras); others are planned for the coming years. Among the new terminals, the Port of Açu LNG-to-power project, developed by GNA (Gas Natural Açu) in 2021, is the first private use terminal in Brazil. Two natural gas-fired power plants with a combined capacity of 3GW are fed by the LNG import terminal with regasification capacity of 28 million m³/day.  

Several new gas-to-power projects under construction in Brazil are anchored to imported LNG. The Energy Research Office (EPE) notes that LNG will continue to play an important role in the Brazilian market by ensuring flexibility to the integrated power grid and to fill in the intermittence of non-dispatchable renewable energy sources, seasonality, and power peaks. Additionally, EPE sees an increase in demand for small-scale LNG to places not yet served by natural gas pipelines, particularly in underserved regions and areas with infrastructure restrictions on gas pipelines.  

Resources 

• Brazilian Oil and Gas Regulator (ANP)  
• Petrobras  
• Energy Research Enterprise (EPE)
• Brazilian Association of Oil Goods and Service Companies (ABESPETRO)  
• Brazilian Association of Independent Oil and Gas Producers (ABPIP)
• Brazilian Petroleum Institute (IBP)

Trade Shows 

• EOTC Brasil – 28-90 October 2025
• FPSO Brazil Congress – 20-23 May 2025
• Rio Pipeline – 9-11 September 2025
• ROG.e (Formerly called Rio Oil & Gas) – 2026 – TBD Dates

For additional information about Brazil’s energy sector, please contact Oil & Gas and Civil Nuclear Specialist, Carlos.Oliveira@trade.gov