Brazil has seen its share of political and economic turbulence in recent years. As the fallout from Operation Car Wash subsides, and the dust settles on new regulations and leadership, many oil and gas industry insiders are anxious to capitalise on novel opportunities tied to the region’s extensive network of deepwater fields in the months and years ahead.
Going forward, much of the growth in Brazilian FPSO market will be driven by Petrobras, which is projected to deploy six planned and nine announced FPSOs by 2025. Key domestic commitments include $84 billion worth of investments between 2019 and 2023, of which $68.8 billion will be spent solely on exploration and production.
As noted in a new report produced by the organisers of the upcoming FPSO Brazil Congress 2020 in association with IHS Markit, according to Petrobras, the Campos and Santos basins have an estimated 6 billion barrels reserve of pre-salt oil. Coupled with the recent passage of new local content regulations that imply easier and lower requirements with reduced fines for E&P contracts, the future looks promising for FPSOs.
With these investments and strategies in place, Brazil’s total production of oil is set to grow at an average rate of 5% per year for the period between 2020 and 2023. In terms of projected FPSO deployments, Brazil is expected to lead the pack with 21 planned and announced projects between 2019 and 2025. In addition to Petrobras, Modec and SBM Offshore have projects in the pipeline.
What else is on the horizon for the Brazilian FPSO market in 2020 and beyond? IHS Markit analyst Carlos Rocha explores this question at length in a new report produced in association with The FPSO Congress in advance of a conference that convenes in Rio de Janeiro this May.
Download the free eight-page report to discover more about:
- The current state of Brazil’s offshore oil and gas market
- Selected FPSO projects
- Bids that closed in 2019
- New bidding rounds
- The global outlook for FPSOs in 2020 and beyond