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ESAI Energy: Brazil's crude growth set for takeoff

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Oilfield Technology,

Brazil’s crude production growth, off to a slow start so far in 2019, is about to ramp up quickly, according to ESAI Energy’s Latin America Watch publication released on June 25. The increase in medium crude will be one of the few sources of non-US supply growth this year.

ESAI Energy’s report details how, after disappointing production over the last 12 months, Brazil’s production is about to take off. Seven new offshore production units are ramping up in Brazil and should eventually bring online more than 1 million bpd of new crude production. ESAI Energy’s detailed analysis shows that the new capacity has ramped up at below average rates over the last twelve months. At the same time, declines at mature fields have accelerated and heavy maintenance at Lula and other fields has knocked off some production. Because of that, crude production has fallen by 30 000 bpd through the first four months of the year.

“Brazil will turn a corner in the second half of 2019,” said ESAI Energy analyst Chris Cote. “The Santos basin, which contains the Lula and Búzios fields, has long promised tremendous growth. After more than eighteen months of delays, it finally looks ready to deliver. Besides the US, Brazil is one of the few places increasing production.”

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Upstream news Brazil upstream news Oil & gas news