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Petrobras is about to revitalize the field after an agreement with the ANP. The plan aims to increase production and extend operations until 2064.
A Petrobras, one of the largest energy companies in the world, is preparing for a return that promises to change the oil production scenario in Brazil.
After years of uncertainty and disputes, the state-owned company is moving forward with negotiations that could free up one of the most valuable fields in the country's history, reopening an era of prosperity in the oil and gas sector.
The Tupi field, located in the Santos basin, was once a symbol of Brazilian success, but does it still have the strength to bring Brazil back to the top?
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According to information from Bloomberg published this Saturday (05), Petrobras is very close to ending a long-running tax dispute with the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which would allow the state-owned company to resume an ambitious project: the revitalization of Tupi.
This field, known as Petrobras’ “cash cow”, was crucial in placing Brazil among the world’s largest oil producers and, now, could be the key to a new phase of growth.
The strategic importance of Tupi
The Tupi field, discovered in 2006, revolutionized Brazil's energy sector.
Located in deep waters in the pre-salt layer of the Santos basin, it was responsible for propelling the country to the status of a major oil exporter in the 2010s.
Tupi alone produced an impressive average of 764.000 barrels per day in the first eight months of 2024, keeping Brazil competitive in the global energy scenario.
Now, Petrobras is seeking to extend the useful life of this field through a strategic plan to drill new wells and carry out more advanced seismic research.
According to Petrobras exploration and production executive, Sylvia dos Anjos, the company hopes this plan will help halt the natural decline in production, which has been a challenge for global oil giants.
The global impact of Tupi
In 2023, Tupi surpassed the production of entire countries, such as Colombia, Venezuela and the United Kingdom. This highlights the size and importance of the field, which continues to be one of Petrobras' largest assets.
With over a decade of operation, it has already generated billions of dollars in taxes, being a true gold mine for the Brazilian government.
Other countries are also watching closely. The decline in production from similar fields, such as the giant Cantarell in Mexico, is a warning to Petrobras.
The Mexican experience has shown that a lack of planning and new drilling can lead to a sharp drop in production., which would be catastrophic for Brazil's finances, which depend heavily on oil revenues.
Ambitious plans for the future
Petrobras has grand plans for Tupi. As stated by Cesar Cunha de Souza, executive manager for ultra-deep waters, the company intends to install a new FPSO (floating production, storage and offloading unit) platform in the field, which can significantly increase production capacity.
It is estimated that each of these platforms could cost up to $4 billion and take years to complete.
The new Petrobras strategic plan, which will be updated in the coming months, also provides for the extension of the Tupi operating contract for another 27 years, until 2064.
According to Bloomberg, this extension is essential to justify the billion-dollar investments that are being planned to revitalize the field.
Dispute with the ANP and the issue of taxes
However, the progress of these projects depends on one crucial issue: the resolution of a dispute with the ANP. The regulatory body and Petrobras disagree on the classification of the Tupi field.
Petrobras claims that it is composed of two separate deposits, Tupi and Cernambi, while the ANP argues that it is a single field.
This difference directly affects the calculation of the financial compensation that the company must pay to the Brazilian government.
Petrobras has already deposited around R$ 14 billion in judicial deposits due to alleged unpaid guest appearances.
According to Bloomberg, Petrobras initiated an arbitration process, but suspended negotiations in search of an amicable agreement.
Petrobras' partners in the field, Shell and Galp Energia, which hold stakes of 25% and 10%, respectively, still need to approve this suspension.
The future of Tupi
Despite the challenges, Petrobras is optimistic about the future of Tupi. The company believes it will be able to not only extend the life of the field, but also increase its production in the coming years.
According to Sylvia dos Anjos, Tupi still has great untapped potential, and Petrobras is determined to make the most of it.
In August 2024, daily crude oil production in Tupi returned to 830.000 barrels per day, after maintenance has been completed on one of the platforms.
This shows that even after more than a decade of exploration, the field still has a lot to offer.
The Búzios field, which is another big bet for Petrobras, should also play an important role in the company's future, but Tupi will continue to be the heart of Brazil's oil production.
With the right investments and the resolution of legal disputes, Tupi will be able to consolidate Brazil as one of the main players in the oil market for many years.
Do you think the revitalization of the Tupi field could be what Brazil needs to regain its leadership in the oil sector? Or should the country seek more sustainable energy alternatives? Leave your opinion in the comments!
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