Brazil oil industry pdf

Click the links to find company profile, jobs and contact details for each company. Also, use the search buttons as there are many more in the company database:. Oceanic and Erifon water-based fluids are used for hydraulic control of valves in offshore drilling and production systems.

The metropolitan region has… Jakarta, Indonesia Jakarta, the capital and largest city of Indonesia, on the northwest coast of Java, at the mouth of the Ciliwung River. Jakarta is a separate metropolitan area with provincial status. The port is an important… Perth, Australia Perth is the oil capital and the largest city in Australia's largest state Western Australia. As for Petrobras, between and , the NOC intensified its investments in the industrialization of the Brazilian oil sector [45].

Over this period, several analyses have been conducted by Pires, ; Nunes and Campos, ; Victor et al, ; Ribeiro, ; Braga, ; Pinto Jr, Petrobras has stood out in the offshore exploration, increasing considerably the volume of its production and its reserves from the discoveries in deep waters. The discovery of the pre-salt, during the 9th Bidding Round, led the CNPE to determine the drafting of a new regulatory framework appropriate to the exploitation of such a province.

Thus, the oil sector inaugurated a new phase with a new institutional organization. The discovery of Lula field Tupi prospect in the province of pre-salt in [46] , considered as one of the largest in the world in the last three decades [47] , opened a new phase in the Brazilian oil sector.

This was the last bidding round performed before changes were made to the regulatory framework. A new regulatory framework was launched in The third was the Production Sharing Law [51] , which instituted the production-sharing regime for the pre-salt area polygon delimited in the Annex of the Law and for the strategic areas.

With the publication of these new laws, a mixed regulatory regime was introduced in Brazil, composed of three fiscal regimes [52]. In the Brazilian government made significant legal changes in its oil sector, inverting the previously undertaken market reforms and intensifying state interference in the sector.

The main goal was to increase governmental strategic resource control to guarantee that future Brazilian generations could take advantages of the proceeds of the oil reserves.

In the terms of this agreement, Petrobras has the right to produce up to 5 billion barrels of oil and natural gas for 40 years, extendable by five more. In ANP restarted the auctions, organizing the Eleventh Bidding Round, focusing on new technological frontiers and mature areas, and the Twelfth Bidding Round, focusing on the exploration of shale gas [58] : both under the concession regime.

The profit oil rate offered was the minimum foreseen in the tender protocol of It is important to mention that PPSA, which is responsible for monitoring the PSA and has a mandatory presence in the consortium as a government representative, was only officially established in , through Decree n. Its directors were appointed days before the Production Sharing Bidding Round. The uncertainty regarding the performance of PPSA in the consortium could have caused some concerns for potential investors, adding risks to investments in the Pre-salt area [61].

Due to this result, discussions on a proper regulatory framework for the Pre-salt continued to occur. In addition, considerations were made regarding the return of the concession regime to the Pre-salt area [63] and the adoption of service contracts for direct contracting of Petrobras [64].

In , two bills were proposed to change the Production Sharing Law. The Thirteenth Bidding Round was carried out in December , and the results were weak in relation to the collection and the blocks acquired [66]. It was the first time that Petrobras has not participated in an auction since the First Bidding Round in This is because the increase in its production and reserves was accompanied by a strong debt, which, in a context of falling oil prices [67] and devaluation of the Brazilian exchange rate, proved unsustainable [68].

The presidency of Petrobras was also changed. In taking control of the state-owned company, Pedro Parente warned that Petrobras needed partners to explore the Pre-salt. Thus, it was necessary to change the Production Sharing Law, opening the possibility for other companies to operate in the Pre-salt [72]. At the end of , Federal Law no. Federal Decree n. Furthermore, CNPE solved issues that caused complaints and increased uncertainties in the oil sector [78].

It reduced the local content requirements [79] and changed the methodology for calculating the reference price [80].

New rules on unitization [81] , commercialization of profit oil in PSA [82] and waiver for local content [83] were launched. The intense production of rules, corresponding to the demands of the industry, inaugurates a new phase for the Brazilian oil sector. New rules have been tested in the bidding rounds carried out in and the 14 th and 15 th Bidding Rounds under concession regime and the 2 nd and 3 rd Bidding Rounds under production sharing regime.

According to ANP General Director, there were diversity of operators, geographical diversity and extraordinary bonuses [86]. For the 4th Bidding Round under production sharing regime, to be carried out in June of , is expected the same positive results of the recent rounds, since it has already reached a record in the enrollment of IOCs [88]. The change in the Brazilian regulatory framework characterizes the fourth phase of the Brazilian oil sector.

Three new laws were passed, which allow the capitalization of Petrobras and the signature of the onerous assignment agreement; the creation of the new Brazilian NOC, PPSA; and the adoption of the production sharing agreement for the Pre-salt area and strategic areas [89].

The result of the first Production Sharing Bidding Round, without competition, aroused several criticisms about the adopted model pressing for changes in the Production Sharing Law. In response to the requests of the industry, the Production Sharing Law was changed.

CNPE also published new rules to relax and complement the regulation enforced and a calendar of Bidding Rounds was announced. There is an effort by the government to attract investments to the Brazilian upstream sector. The recent Bidding Rounds results seems to confirm the attractiveness of the Brazilian sector and the achievement of objectives by the new rules implemented. Nevertheless, it is still early to make a complete assessment of the new context of upstream Brazilian Industry.

This article has detailed the evolution of Brazilian oil sector, highlighting the government interference, as well the geological achievements since its beginning until reach the current level of exporter with the production of Pre-salt area.

Through this article, it is possible to analyze the policies that have stimulated the current results and those that have hampered the development of the industry.

Thus, this article can serve as a material to be considered for the elaboration of future policies for the sector, in order to do keep the progress of Brazil Petroleum Industry. I am grateful to Prof. Catherine Locatelli, Prof. Helder Queiroz and Sylvain Rossiaud for all the advice in the drafting of this article. World Energy Outlook of Rio de Janeiro. Brazil has also reduced requirements to use locally produced goods and services that had previously contributed to delays, and reinstated a regular schedule of annual licensing sales.

However, some IOCs have nevertheless declined to participate in such biddings, due to the high initial payments and overly complicated contracts required. These downsizing processes should create an increase in the market share for small- and medium-sized companies, as well as for large foreign multinationals. Brazil needs to rapidly permit more companies to invest in oil production, especially now that Brazil faces new competition from other Latin American countries, such as Uruguay and Guyana the latter of which has been drawing intense interest recently since ExxonMobil made 18 discoveries in its Stabroek block.

Both countries are also planning to offer licensing sales in Additionally, as the global economy transitions toward renewable energy and decarbonization, competition for investments in oil exploration and production will only increase exponentially.

Nonetheless, the current forecast for Brazilian oil production remains promising. If these projections are accurate, within the next decade Brazil will become the fourth-largest oil producer in the world, behind the United States, Saudi Arabia, and Russia.