Brazil's offshore oil wells will quadruple this year

According to a report from the Petroleum World Journal in Rio de Janeiro on April 30, the exploration director of Brazil’s National Petroleum Agency said in a webinar on April 28 that as oil companies increase exploration activities, the new crown epidemic has weakened.

After the oil and gas industry takes measures to prevent offshore oil and gas leakage from interrupting operations, exploration activities are expected to rise.

Marina Abelha of ANP said that what we have seen is that the company is cautious but optimistic.

According to Abelha, ANP expects to drill 45 wells in 2021, 19 of which will be drilled offshore.

As Brazil continues to fight the world's second deadliest COVID-19, the increase in activity means recovery.

Brazil also reduced its exploration area in 2020, suspending the 17th round of bidding, the 7th round of sub-salt production sharing auctions and the second rights transfer sale.

ANP did hold the second cycle of public land sales by regulators, which was triggered by the interest shown by various oil companies.

Executives pointed out that Brazil's promotion of license sales in 2021 is an important part of the restart activity, because exploration is the lifeblood of oil companies.

Hao Fen translated from Petroleum World Journal

The original text is as follows:

Brazil's offshore wells to quadruple in 2021 -ANP

Brazil's National Petroleum Agency expects the number of exploration wells drilled off the country's coast to nearly quadruple in 2021 to 19 wells as oil companies ramp up activity and the coronavirus pandemic wanes, the regulator's superintendent for exploration said during a webinar April 28.

The expected upswing in exploration activity came after the industry implemented measures to guard against offshore outbreaks that can disrupt operations.

"What we're seeing is that companies are cautious, but optimistic," the ANP's Marina Abelha, said.

"We expect 2021 to be better than 2020," Abelha said.

The ANP expects 45 wells to be drilled in 2021, with 19 offshore, according to Abelha.

The increased activity represents a restart as Brazil continues to battle the world's second-deadliest coronavirus outbreak.

Brazil also reduced access to exploration acreage in 2020, suspending the 17th bid round, 7th subsalt production-sharing auction and second transfer-of-rights sale.

　　The ANP did hold the second cycle of the regulator's Open Acreage sale, which is triggered by a manifestation of interest by individual oil companies.

　　Brazil's push to hold licensing sales in 2021 is an important part of restarting activity because exploration is the lifeblood of oil companies, executives noted.
Latin America's biggest oil and gas producer also faces increased global competition for oil-industry investments, including neighboring rivals in Guyana and Suriname.