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Oil Production in Brazil Will Approach 4 Million Barrels Per Day by 2023

Written by Renato Oliveira
Published on 05/08/2019 at 15:49
Updated on 05/08/2019 at 17:14
Petróleo ANP Produção
aumento de 40% na produção
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40% Increase, According to ANP Forecasts, Will Be Accompanied by Increased Investments in New Oil Production Units

Investments of R$ 5.2 billion in platforms Oil next year, will cause national production to record a 40% increase, rising from the current 2.7 million barrels per day to 3.756 million barrels per day in 2023.
The data comes from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which forecasts an estimated investment of R$ 17.4 billion in new platforms by 2023.

The forecasts were released last Thursday (01/08) and also foresee an increase in natural gas production from 118 million cubic meters/day to 167.6 million cubic meters/day over the same period.
Aligned with the investment mindset in the oil and gas sector, ANP also announced on this date the approval of the bid notice and the contract models for the auction of the excess volumes from the onerous assignment, which is scheduled to take place on November 6.

The documents will undergo approval at the Ministry of Mines and Energy and then at the Federal Court of Accounts (TCU), before being published on September 6.

Fuel Prices

The Director of Strategic Planning and Market at the National Association of Fuel Distributors, Helvio Rebeschini, explained that Petrobras, when adjusting fuel prices at refineries, only does so in part, and the company is not solely responsible for the increases.

It is worth noting that Petrobras announced last Wednesday (31/07) a 3.75% adjustment in the average price of diesel and a 4% adjustment in the average price of gasoline at refineries. The new prices took effect on Thursday (01/08).

“This is a mathematical issue. If the price at the refinery drops by 5%, the percentage that will fall (at the pumps) is not 5%”, said the association’s director.

He further explained that the strong competition in distribution and resale prevents the full pass-through of the adjustment at oil refineries.
According to a survey by the Association, this year, until July 20, the average price of gasoline at refineries increased by 10.3%, while at the pump it rose only by 0.2%. In the case of diesel, the price at the refinery advanced by 14.2%, while the pump price increased by 3%.

Read here on your CPG portal! Petrobras announced that the Pre-salt has reached the lowest extraction cost in history!

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Renato Oliveira

Engenheiro de Produção com pós-graduação em Fabricação e montagem de tubulações com 30 anos de experiência em inspeção/fabricacão/montagem de tubulações/testes/Planejamento e PCP e comissionamento na construção naval/offshore (conversão de cascos FPSO's e módulos de topsides) nos maiores estaleiros nacionais e 2 anos em estaleiro japonês (Kawasaki) inspecionando e acompanhando técnicas de fabricação e montagem de estruturas/tubulações/outfittings(acabamento avançado) para casco de Drillships.

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