E&P revival off Brazil being driven by regulatory, legal changes; and increased Petrobras capex.
Offshore drilling and E&P activity is set to ramp up quickly in Brazil over the next four years, according to the latest analysis from Melius Research, a New York City-based investment research and data analytics firm.
Prompting this invigoration of Brazilian E&P are some key changes on the regulatory front, including reduced local content requirements; and reduced Petrobras ownership requirements for offshore leases, which has led to a surge in activity from the international supermajors.
Also spurring E&P activity offshore Brazil is Petrobras' 2025-2029 plan, which has been "upsized" compared to its 2024-2028 plan. Under the new schedule, Petrobras plans to increase capex spending by 5% to $77 billion. "We anticipate increases in further multi-year plans as they are unveiled," Melius Research said.