ANP Reports That Oil And Gas Sector Should Receive Investments Of R$ 6.4 Billion By The End Of This Year

In the Report Released Yesterday (05) by ANP, It Was Announced That Besides Investments in the Oil and Gas Sector, About 38 Wells Will Be Drilled

Yesterday, Monday (July 5), ANP released information during the virtual seminar New Information Disclosure Instruments on Oil and Natural Gas Exploration. During the meeting, the 1st Annual Exploration Report and the Dynamic Exploration Panel were presented, informing that the oil and gas segment may receive investments of R$ 6.4 billion by the end of this year, 2021. See also: Oil – ANP Approves and PetroRio Will Drill 4 Wells in the Frade Field, in the Campos Basin

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In Addition to Investments in the Oil and Gas Segment, More Wells Will Be Drilled

The oil and gas sector is expected to receive R$ 6.4 billion this year, including the drilling of 38 wells, more than double the amount realized in 2020. Drilling activities represent the main indicator of investments in the exploration phase, accounting for more than 80% of the total investment expected for the year, totaling R$ 5.2 billion.

Of the 38 oil and gas wells planned to be drilled, 18 are to be offshore, while 20 will be onshore, compared to a total of 16 drilled last year, according to ANP.

The document also states that, as a reflection of the volume of activities and investments reported by contractors, the forecasts for 2021 indicate the expectation of the beginning of a recovery in the oil and gas exploration segment. ANP states that if completed, in 2021 more wells will be drilled than in any other year from 2016 to 2020, surpassing, for example, the year 2019 when 27 wells were drilled (8 offshore and 19 onshore).

Contracts and Investments

ANP highlights that from the signing of the exploration and production contract, the contracted companies undertake exploratory activities with the aim of discovering oil and natural gas. The exploration phase is characterized by high risk, involving substantial investments, without the guarantee of success in the commercial discovery of reserves.

ANP’s document also emphasizes the success of the pre-salt, the importance of the Santos and Campos basins, the longevity of the mature onshore basins of Recôncavo, Potiguar, Espírito Santo Terra, and Sergipe-Alagoas Terra, and the most recent gas fields in the Parnaíba Basin.

The oil and gas exploration segment is also responsible for job creation and technological advancement. As will be evident in this ANP report, investments in exploratory activities projected for 2021 exceed R$ 6.4 billion.

See Also: New Agreement Signed Between ANP and the Government of RJ to Enhance Oversight of Oil and Gas Production

On Monday (06/14), the state government of Rio de Janeiro and ANP – National Agency of Petroleum, Natural Gas and Biofuels – closed a cooperation agreement to enhance oversight of royalty payments and special participations on oil and gas production in the state.

In a press release, the government of Rio de Janeiro clarifies that the agreement with ANP defines parameters to improve the methodology for overseeing the compensatory revenues from oil and gas exploration in Rio. The State Department of Finance (Sefaz-RJ) estimates that the state of Rio de Janeiro may have lost around R$ 10 billion in special participation revenues over the past ten years.