Economy & Business - September 2024

BRAZIL | Investment in oil exploration expected to rise. On 2 September, Brazil’s federal oil and gas regulator (ANP) published its 2023 annual report on exploration, which includes projections for investments in the sector between 2024 and 2027. ANP expects overall investments in the oil and gas exploration phase to total R$18.31bn (US$3.29bn) over this period. Investments in this phase, during which studies are carried out in exploratory blocks to determine the presence and viability of oil or gas, are predicted to be highest this year at R$9.97bn (of which R$9.5bn for offshore exploration). Expected investment will fall to R$7.64bn in 2025 and then just R$701m in 2026-2027. According to the ANP report, 2024 is expected to be a record year for oil and gas exploration, with 39 wells due to be drilled by the end of the year, surpassing the previous record in 2019, when 27 wells were drilled. From 2024-2027, seven new wells are expected to be drilled in the Santos basin along Brazil’s south-eastern coast, while eight wells are projected for the Foz do Amazonas area, in the ecologically sensitive waters near the mouth of the Amazon River.