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It Remains to Be Seen What Will Happen to Important Oil and Gas Projects in the Pre-Salt Zone Explored by Petrobras in Partnership with Foreign Oil Companies
The oil and gas sector was extremely affected by the crisis caused by the coronavirus pandemic, directly impacting projections for the development of new exploration and production (E&P) areas in Brazil and worldwide. Job openings at the Jurong Aracruz shipyard in Espírito Santo, today July 20, for the roles of Deckhand and Accounting Analyst
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By next semester, Petrobras will inform the market of a review of its future ventures, deciding the fate of its projects for the sector, which, given the current industry scenario and the price of oil, may have affected timelines.
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According to projections made by Rystad Energy, the financial commitments of oil companies to exploration and production in the oil and gas sector this year could drop by 75%. This represents about US$ 47 billion.
Of this amount, about US$ 27 billion will be invested in offshore projects, and the remaining US$ 20 billion will remain onshore. By way of comparison, the total financial commitments announced last year reached US$ 197 billion.
According to the analysis made by Karan Satwani, energy services analyst at Rystad Energy, “At the beginning of this year, the projected project commitments for 2020 were comparable to 2019, but the sector’s slowdown due to Covid-19 caused commitments to drop drastically. In the future, we estimate that sanctions will not resume again and will not recover to 2019 levels anytime soon.”
In Brazil, it remains to be seen what will happen to important oil and gas projects in the pre-salt zone explored by Petrobras in partnership with foreign oil companies.
The exploratory activities in recently auctioned blocks were already defined. This is the case of the oil block Dois Irmãos, awarded to the consortium formed by Petrobras, Equinor, and BP in the 4th Production Sharing Round, with drilling scheduled to start in the 1st quarter of 2021.
Another oil block also awarded in the 4th Round, Jfpsoá in the Três Marias block, whose operator is Petrobras, was scheduled to start drilling in the 1st quarter of 2021.
While Brazil still awaits a clear definition of the fate of new projects, a package of tax exemptions announced by the Norwegian government last month provided relief to the country’s oil and gas operators.
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