Historic $3 Billion Boost To Brazil's Onshore Oil & Gas Production

2025-09-24 06:12:25

(MENAFN- The Rio Times) The Brazilian oil regulator ANP extended 139 onshore field contracts and unlocked R$17 ($3.2) billion for drilling and maintenance.

Operators will sink 2 115 new wells, recomplete 5 546 existing wells and intervene in 1 039 others to sustain output. These fields won in the 1998 Round Zero faced expiry in 2025 and risked sharp production drops.

ANP approved updated development plans to avoid supply gaps and preserve local jobs in onshore hubs. By boosting oil recovery from 22.56 percent to 26.34 percent, Brazil secures about 600 million barrels of additional oil.

Raising gas recovery from 40.06 percent to 65.33 percent will yield roughly 72 billion cubic meters of gas. The move steers revenue from royalties and taxes back into producing regions, funding schools, hospitals and roads.

It also lets operators use water flooding and gas injection at lower royalty rates on extra volumes, improving project returns. This strategy taps mature brownfield potential before seeking new reserves.

It shows Brazil's pragmatic resource management, balancing private investment with energy security and public benefit.

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