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350 THOUSAND jobs and over R$280 BILLION in investment! The Equatorial Margin is the new era of oil for Petrobras, potentially surpassing the pre-salt layer and generating billions for the state-owned company and other oil companies such as Shell

Written by Alisson Ficher
Published 15/10/2024 às 18:33
Petrobras has been waiting for 16 months for Ibama's decision on the pre-salt layer in Foz do Amazonas, an area that could yield more than 5 billion barrels.
Petrobras has been waiting for 16 months for Ibama's decision on the pre-salt layer in Foz do Amazonas, an area that could yield more than 5 billion barrels.

The Equatorial Margin is the new promise of oil growth in Brazil, with the potential to rival the pre-salt and bring billions to the country.

It seems that a new era is about to dawn in Brazil's oil and gas sector, one that could surpass even the mighty pre-salt.

With the expectation of generating 350 thousand jobs and investments that exceed $ 280 billion, the exploration of the Equatorial Margin has the potential to transform the country's economy.

However, what few people know is that this transformation will come from a region that is still little explored.

But what makes this new frontier so promising and at the same time challenging? The answer lies in an area that extends from the coast of Amapá to Rio Grande do Norte: the Brazilian Equatorial Margin.

According to estimates, this region holds an impressive potential of up to 30 billion barrels of oil equivalent.

If this comes to fruition, Brazil could see a new boom in the oil sector, similar to the revolution that pre-salt brought a few years ago.

It is no coincidence that large companies in the sector, such as Petrobras, PRIO, Shell and Brava Energia, are already keeping an eye on the opportunities that this new territory can bring.

Comparison with pre-salt

Many comparisons have been made between the Equatorial Margin and the pre-salt, which raised Brazil to a prominent position in the world oil market.

However, while expectations are high, there are significant challenges in this new frontier. The Equatorial Margin, still little explored, has geological similarities with neighboring regions, such as Guyana and Suriname.

These countries have experienced meteoric economic growth following their oil discoveries, as in the case of Guyana, whose GDP grew by an incredible 44,1% in 2023.

According to the National Petroleum Agency (ANP), if everything goes as planned, the Equatorial Margin could add up to 1,1 million barrels per day to Brazil's oil production by 2029, which would represent about a third of current production.

This is a projection that makes oil companies dream big and promise big investments, but it also raises environmental concerns that need to be taken into account.

Environmental and economic challenges

Despite its enormous potential, the Equatorial Margin is located in an environmentally sensitive region.

The Foz do Amazonas Basin, for example, is known for its rich biodiversity, and any oil exploration needs to be done with extreme care.

This became clear in 2023, when the Brazilian Institute of the Environment (Ibama) denied a drilling request from Petrobras, citing the need for more rigorous environmental assessments.

Minister Alexandre Silveira, however, highlighted that Petrobras is committed to sustainability standards and that the government seeks to create a balance between economic development and environmental protection.

The future scenario will depend on how this balance is achieved, especially considering the potential for economic growth that this exploration can bring.

A job creation and tax revenue generation are two of the direct benefits that the exploration of the Equatorial Margin can provide to Brazil.

According to the Brazilian Institute of Oil and Gas (IBP), the full exploration of this area could generate around 350 thousand new direct and indirect jobs.

Furthermore, the increase in the collection of royalties and taxes will allow states and municipalities to invest more in infrastructure and improvements for their populations.

Billion-dollar investments and the strategy of oil companies

Petrobras is already positioning itself as one of the main beneficiaries of exploration on the Equatorial Margin.

The state-owned company allocated US$3,1 billion to this region between 2024 and 2028, demonstrating its commitment to the development of this new frontier.

The company has already conducted more than 700 drillings at the site, accumulating experience in offshore operations that could be crucial to future success.

Other companies, such as Brava Energia and PRIO, are also keeping an eye on the opportunities.

Brava, the result of the merger between Enauta and 3R Petroleum, has shown agility in acquiring undervalued assets, and sees the Equatorial Margin as an opportunity to expand its portfolio.

This new offshore frontier could bring a leap in these companies' proven reserves, leveraging its results and solidifying Brazil as one of the world's largest oil producers.

A promising but uncertain future

Although the economic potential of the Equatorial Margin is undeniable, The coming years will be crucial in determining whether the region can truly rival the pre-salt.

The government is working to balance economic interests and environmental demands, while oil companies adjust their strategies to maximize their profits and mitigate risks.

In addition to the economic issue, there is also the debate about the role that the Equatorial Margin will play in Brazil's energy transition.

The country, known for its relatively clean energy matrix, can use profits from oil exploration to invest in renewable energy, such as solar and wind.

In this way, the Equatorial Margin can not only guarantee Brazil's energy sovereignty, but also support the development of more sustainable energy sources.

With so many challenges and opportunities ahead, the question remains: Will the Equatorial Margin be able to deliver everything it promises and become a new revolution for Brazil, like the pre-salt?

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Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines and over 12 thousand online publications. Specialist in politics, jobs, economics, courses, among other topics. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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