Brazil Offshore Oil and Gas Upstream - Growth, Trends, and Forecasts (2020-2025)

The offshore brazil oil and gas upstream market is expected to grow at a CAGR of over 4% in the forecast period of 2020-2025. Factor such as deep-water and ultra-deep-water exploration and production is likely to drive offshore brazil oil and gas upstream market in the forecast period. However, the volatile nature of crude oil prices is expected to have a negative impact on the offshore brazil oil and gas upstream market.

• The deep-water and ultra-deep-water segment held a significant market share in 2019, and it is likely to dominate the market during the forecast period.
• An increase in the development activities in Santos Basin, which is a deep-water basin is likely to create an ample amount of opportunities for offshore brazil oil and gas upstream players in the near future.
• Increasing oil and gas production from the offshore is likely to drive the brazil offshore oil and gas upstrem market during the forecast period.

Key Market Trends

Deep-Water and Ultra Deep-Water Activities to Dominate the Market

• Deep-Water and Ultra Deep-Water projects in the past decade have dominated the offshore brazil oil and gas upstream and are likely to dominate the market during the forecast period as well. Since 56% of the oil and gas production of Brazil comes from deep-water and ultra deep-water activities, and 37% from shallow water, so deep-water and ultra deep-water segment expected to dominate the brazil offshore oil and gas upstream market during the forecast period.
• In 2018, the total oil production of Brazil was 140.3 million tons (MT) which was higher than what the country produced in 2015, 132.2 million tons (MT).
• Libra oil field in Santos Basin in Brazil is an ultra-deep-water basin, is the largest oil field in Brazil, is under development phase, and is expected to complete in 2021. This is likely to have a positive impact on the brazil offshore oil and gas upstream market in the forecast period.
• Petróleo Brasileiro S.A. (Petrobras) in 2019 has awarded MODEC to install the fifth Floating, Production, and Storage Offshore (FPSO) Unit in Buzios field for its development. These development activities are likely to drive the brazil offshore oil and gas upstream market in the forecast period.
• Hence, the above points indicate that deep-water and ultra deep-water activities are expected to dominate the brazil offshore oil and gas upstream market in the forecast period.

Increasing Offshore Oil and Gas Production Expected to Drive the Market

• After oil prices fall in 2014 many countries shifted towards onshore projects. Still, it turned out that the return on investment period of onshore projects are 10 to 15 years, so Brazil started deep-water and ultra-deep-water explorations which are more profitable having a return period of 5 to 6 years and are likely to drive the offshore brazil oil and gas upstream market in the forecast period.
• According to the National Agency of Petroleum, Natural Gas, and Biofuels (ANP), in 2019, out of the total oil and gas production in the country, 93% is from offshore, and only 7 % is produced from the onshore. This discovery is expected to drive the brazil offshore oil and gas upstream market in the forecast period.
• In 2018, Brazil was the 10th largest producer of oil and gas in the world, the largest producer in South America and the 7th largest oil products consumer in the world. The majority of the oil and gas are produced offshore, which is expected to drive the Brazil offshore oil and gas upstream market in the forecast period.
• Equinor ASA is in the second phase of the development of its Peregrino Oil field in Brazil offshore. Equinor is planning to invest USD 3.5 billion on the project, which will start production by the end of 2020.
• Therefore, owing to the above points, increasing production of oil and gas from the offshore is liklely to the brazil offshore oil and gas upstream market in the forecast period.

Competitive Landscape

The Brazil offshore oil and gas upstream market is moderately consolidated. Some of the key players in this market include Petroleo Brasileiro SA Petrobras Preference Shares, Exxon Mobil Corporation, B.P. plc, Royal Dutch Shell Plc, and Total S.A.

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