Brazil - Country Commercial Guide
Oil and Gas
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Brazil is Latin America’s top oil producer. The country owns the largest recoverable ultra-deep oil reserves in the world, with 97.6% of Brazil’s oil production produced offshore.  The 2022 average oil production was 3.02 million barrels per day, 2.47% higher than the previous annual record, in 2020, totaling 1.1 billion barrels of oil and 50.3 billion cubic meters of natural gas, according to ANP (The Brazilian National Agency for Petroleum, Natural Gas and Biofuels). 


Oil, Gas and Oil Equivalent Production Data - BrazilOil, Gas and Oil Equivalent Production Data - Brazil







2022 vs 2021 

Oil (MMb/d)







Gas (MMm³/d)







Oil Equivalent (MMboe)







Source: ANP   “Encarte de Consolidação da Produção 2022” - Yearly bulletin on production, National Oil & Gas Regulator


Brazil - Production Data by Environment (Mboe/d)
Brazil - Production Data by Environment (Mboe/d)


Source: Translated and adapted from ANP  “Encarte de Consolidação da Produção 2022” - Yearly bulletin on production, National Oil & Gas Regulator

Brazil’s deep water pre-salt fields accounted for 75% of national production.  Brazil’s 2022-2032 Energy Expansion Plan forecasts that the country’s oil production will reach 4.9 million barrels of oil per day by 2032 with the pre-salt fields accounting for nearly 80% of total production.  Shallow water and onshore fields are not expected to exceed 7% of total oil output. However, there is an expectation of improvement in the production of these fields due to the Revitalization Program for the Exploration and Production of Onshore Oil and Natural Gas Areas (REATE 2020) and the Revitalization and Incentive Program for the Production of Maritime Fields (Promar). By 2030, Brazil is expected to become the world’s fifth largest crude oil exporter.

Brazil’s 2022 natural gas (NG) production was 138 million cubic meters/day - up 2.98% from 2021. The average NG supply in 2022 was 47.56 million m³/day (considering losses, gas reinjection, burn, and E&P consumption). NG domestic production represented approximately 70% of Brazil’s supply, while imports from Bolivia reached 25%, followed by Liquefied Natural Gas (LNG)imports at 9%. The United States was the largest LNG exporter to Brazil in 2022 supplying 5.1 million m³, representing 76% of the total imports. Common challenges facing the Brazilian gas market include high CO2 content, 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 2031 Energy Expansion Plan (PDE) forecasts oil and gas exploration and production (E&P) investments to range from $428 billion to $474 billion during this period.  These figures reflect an evaluation of aggregated investments of all E&P in Brazil, including those from national oil company Petrobras, as announced in its 2022-2026 Strategic Business Plan.

In line with climate commitments, oil operators are seeking to increase efficiency while reducing costs and 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

According to ANP, from 2023 to 2027, Brazil is expecting investment of approximately $4.3 billion in exploration activities, including forecasts for 91 new wells, 63 onshore and 28 offshore. 32 of these news wells are expected to start exploration activities in 2023, and 35 are forecasted for 2024. ANP keeps an interactive dashboard with information about forecasted investment in exploration activities.

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 since Brazil has decreased local content requirements. 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. Registration requires that foreign firms have a local legal representative. In some tenders, this requirement may be waived, depending on the bid specifications. 

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 some of these assets by up to 300% in the first half of 2023, based on vertical management models that include investments in manpower and drilling rigs. 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, such as 3R Petroleum, Origem Energia, Petrorecôncavo, Imetame, ENP, Seacrest, Eneva and Carmo Energy, are forecasting significant investments and expect to increase production by four times over the next five years. Such a drastic increase requires investments in interventions and new drillings that increase the productive life of the fields and extend the use of existing operating assets. Consequently, this cycle is increasing the demand for more services and equipment, particularly in the area of new technologies that reduce costs and increase competitiveness.

According to ANP annual industry report, in 2022, Petrobras was involved in 88% of Brazil’s total oil and gas production. Petrobras’ net participation, considering partnerships with other companies, represents 68% of the total production. Companies like Shell, Repsol Sinopec, Equinor, Petrogal, and TotalEnergies, among other international and local independent operators share the remainder.

Petrobras´ current Strategic Plan (2023-2027) calls for an investment of US$78 billion of which 83% (US$64 billion) will be made in exploration and production (E&P) activities.

The graphic below shows, between 2023 and 2027, it is estimated that 18 new floating production, storage, and offloading (FPSOs) units will begin operations. 


Estimated New floating production, storage, and offloading (FPSOs) - 2003-2027
Estimated New floating production, storage, and offloading (FPSOs) - 2003-2027

Source: Petrobras Strategic Plan 2023-2027  


Petrobras anticipates investments of US$ 3.7 billion in decarbonization and US$0.6 billion in biofuels over the next five years, with initiatives that include Renewable Diesel and Bio Jet Fuel projects.

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 emissions per barrel than the world average, according to Petrobras. 

In December 2021, Petrobras recorded 30 million tons of CO2 being reinjected into the pre-salt reservoirs, preventing its venting into the atmosphere.  Petrobras’ forecast indicates that by 2025, 80 million tons of CO2 will be reinjected, representing one of the largest Carbon Capture, Usage and Storage (CCUS) deep water technology projects in the world.  Since 2015, the company recorded a 15% reduction in its total operating emissions, 15% short of its goal by 2030 of a 30% reduction. Between 2009 and 2021, Petrobras reduced greenhouse gas emissions per barrel of oil produced by approximately 50%. 


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 (17 refineries) with Petrobras owning 10 refineries with the capacity of 1.9 MMbpd.  Petrobras plans to invest over US$ 9.2 billion to expand its Biorefining capabilities, retrofit its assets, improve efficiency gains, increase operational availability, lower energy intensity, and decrease emissions.

LNG Terminals in Brazil:

There are five LNG regasification terminals in operation in Brazil (three owned by Petrobras); three more are under development; and several others are planned for the coming years.  Among the new terminals, the Port of Açu LNG-to-power project, developed by GNA, is the largest of its kind in South America. Two natural gas-fired power plants with a combined capacity of 3GW are fed by the LNG import terminal with regasification capacity of 21 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. Barges and coastal shipping/cabotage will distribute the imported LNG from floating storage units (FSUs) in the Amazon region to locations in northern Brazil in order to replace fuel, oil and diesel for industrial and power generation markets. These barges will be equipped with mobile cryogenic tanks.  However, the Ukraine-Russia war and the resulting gas scenario may impact planned LNG projects in Brazil.

EPE LNG Terminal Plan
EPE LNG Terminal Plan

Source: EPE LNG Terminal Indicative Plan 2021- PITER


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For additional information about Brazil’s energy sector, please contact Oil & Gas and Civil Nuclear Specialist,