Endeavor Management would like to present its latest report on the O&G Sector in Brazil, recently published in World Oil magazine.  Ricardo Giamattey and Bruce Crager describe the current landscape in Brazil for the O&G industry, also including a section on renewables.  To understand the challenges and opportunities in this country that today is the 10^th largest global producer of crude oil and natural gas is essential for all players involved in the industry. The interest and reaction the article has generated confirms to us that interest in this market is as high as ever.

Brazil joined the “senior league” of O&G countries in the last decade, following the discovery of the largest offshore O&G province of the world, the pre salt, that currently produces 2 MM boe/d and exports roughly 75% of that production.  Even after the COVID pandemic, we forecast that by 2030 pre salt production can reach 5MM boe/d.  But for that to happen, lessons from the mistakes of the past have to be deployed to deliver upon the huge challenges of the sector in Brazil.  And this time the Brazilian government has to provide the correct incentives for the industry to thrive – now it´s all-in for the O&G industry in Brazil!

This special report includes the Brazil pre salt recent developments and its challenges going forward and the massive divestment program that NOC Petrobras has been carrying out to better focus its operations and to open space for the creation of a “non-Petrobras O&G industry in Brazil” through the presence of dozens of new agents in all parts of the value chain.  Either by operating divested Petrobras assets or by exploring new investment opportunities in the sector, there is plenty of value to be created, but the proper conditions to unlock all this value are not in place yet. The government and the private sector have to work side by side to create these necessary conditions for a dynamic and competitive O&G industry to flourish in Brazil.

This reports covers all the relevant aspects of the current pre salt scenario in Brazil, and Endeavor Management through its vast group of specialists in Brazil is ready to further discuss any topic and clarify any aspect that our clients are interested in developing a deeper understanding.