Brazil Oil & Gas Northeast
The Northeast of Brazil, a geographic region comprising 9 Brazilian states, has attracted investments in the Oil & Gas sector over the last years, creating opportunities for U.S. companies with expertise in the onshore, offshore and downstream industries.
Petrobras’ recent divestment program for its downstream and onshore assets has opened the door to new players and created further opportunities in the Northeast region of Brazil. Independent oil companies that acquired onshore fields significantly increased the production of some of those assets, grounding their business model on integrated vertical management that include investments in manpower and drilling rigs, operations optimizations through the introduction of new technologies and concepts, including the integration of natural gas underground storage and power generation.
Independent oil and gas companies that operate onshore assets, such as Brava Energia, Origem Energia, Petrorecôncavo, Seacrest, Eneva, Elyisiam, and Carmo Energy, are forecasting growing investments and expect a 300% increase in production over the next ten years. The investments in new technologies in the region have reached over US$1 Billion per year including well intervention and optimization, and new drillings that extend the productive life of mature fields. U.S. industry expertise related to onshore exploration and production combined with the technical knowledge of production optimization technologies represents a significant competitive advantage - attracting interest from Brazilian engineers, geologists, and procurement specialists.
In the downstream sector, the 2021 acquisition of the Mataripe Refinery, in Salvador, by Mubadala Capital represented a big shift in the Northeast region. The refinery is one of the largest by capacity in the region and has strategic importance to the supply of diesel, sustainable aviation fuels (SAFs) and other petrochemical products. Mubadala Capital has announced over US$3 billion in investments to diversify its refining capacity and modernize the industrial complex by targeting new fuels, enhancing productivity, and reducing the environmental impact of its operations.
The discovery of natural gas deposits on the Sergipe-Alagoas Basin, and the exploration of the Equatorial Margin also put the Northeast at the center of the discussions of a new exploratory frontier, raising the profile of investments and foreign interest in the region. New infrastructure projects, such as the LNG Terminal in the Port of Suape in Recife, and the Itaqui terminal in Maranhão, confirm that besides traditional E&P investments, infrastructure will also be a highlight for the energy sector in the Northeast region.
For more information on opportunities for U.S. companies, please contact Carlos Oliveira Carlos.Oliveira@trade.gov, Oil and Gas Commercial Specialist, U.S. Commercial Service, Rio de Janeiro.