Brazil opened 2026 pumping crude oil at a pace that would have seemed improbable a decade ago. According to the National Petroleum Agency (ANP), the country produced 3.953 million barrels per day in January, a 14.6% jump from the same month last year. The figure follows a record-setting 2025 in which annual average production hit 3.770 million bpd, itself a 12.3% increase over the prior year.
The January number was slightly below December’s output, down 1.5%, largely because of routine maintenance at offshore platforms. But the year-on-year trajectory tells the real story: Brazil is rapidly climbing the ranks of global oil producers, driven almost entirely by the deep-water pre-salt fields that lie beneath kilometers of rock, salt, and ocean floor off the southeastern coast.
The Pre-Salt Engine
Pre-salt fields accounted for roughly 80% of Brazil’s total crude production in January, contributing 3.167 million bpd from 177 active wells. The four largest fields are all operated by Petrobras and sit in the Santos Basin. Tupi led with 917,700 bpd, followed by Búzios at 875,700 bpd, Mero at 669,400 bpd, and Itapu at 152,900 bpd.
The Búzios field has emerged as particularly significant. Its newest floating production vessel, the FPSO Almirante Tamandaré, was the single most productive installation in January at 241,608 bpd. Two additional FPSOs scheduled for the Búzios field, one that came online in late 2025 and another expected by mid-2026, will push the field’s output even higher.
Petrobras Dominates, but Foreign Players Expand
Petrobras produced 2.41 million bpd as a concession operator in January, representing 61% of national output and a 14.8% increase from a year earlier. The state-controlled company’s $109 billion investment plan for 2026-2030 allocates $43 billion specifically to pre-salt operations, with a target of reaching 4.2 million bpd of crude by 2028.
International companies are also scaling up. Shell was the second-largest producer at 407,500 bpd, followed by TotalEnergies at 166,200 bpd. Equinor’s Bacalhau field, which began production in October 2025, marked the first major offshore project in Brazil managed by an international operator rather than Petrobras.
Natural Gas Follows the Trend
Natural gas production also climbed, reaching 193.16 million cubic meters per day in January, a 20.2% year-on-year increase. But the headline figure masks a structural limitation. Of that total, 107.77 million cubic meters were reinjected into producing fields to maintain reservoir pressure, a standard technique in deep-water operations. Only 61.92 million cubic meters per day reached the market.
This gas reinjection gap is a persistent feature of Brazil’s oil industry. The country produces significant volumes of associated gas alongside its crude, but the infrastructure to capture and monetize all of it has not kept pace with production growth.
The Global Context
Combined oil and gas production reached 5.168 million barrels of oil equivalent per day in January, reinforcing Brazil’s position as Latin America’s largest hydrocarbon producer by a wide margin. The U.S. Energy Information Administration forecasts that Brazil, along with Guyana and Argentina, will account for roughly half of all global crude oil production growth in 2026.
Brazil formally joined the OPEC+ alliance in early 2025, though it has not accepted production caps. The move was strategic rather than constraining: it gave Brasília a seat at the table in global supply coordination while preserving its freedom to expand output. With breakeven costs estimated below $40 per barrel and falling, and with pre-salt crude prized for being light, sweet, and low in carbon intensity, the economic case for continued expansion remains strong regardless of where oil prices settle.