Brazilian Oil Producers See Growth in January, Brava Leads the Surge

Brazilian oil companies Brava Energia (BRAV3), PetroReconcavo (RECV3), and PRIO (PRIO3) reported significant production growth in January, driven by new wells and operational improvements, according to a Santander report.

Analysts highlighted Brava’s standout performance, with production surging to approximately 68,000 barrels of oil equivalent per day (kboed), up from 39,000 kboed in December.

Brava’s growth stemmed primarily from offshore operations in deep and ultra-deep waters. The Atlanta and Papa-Terra fields exceeded expectations, delivering higher-than-anticipated volumes.

The company projects stabilization between 80,000 and 85,000 kboed in the coming months, supported by Atlanta’s recent output of about 28,000 barrels per day (kbpd), as reported by Brazil’s National Petroleum Agency (ANP).

PetroReconcavo also posted gains, reaching 27,000 kboed in January. New wells in the Tiê and Sabiá fields contributed to this growth. In the Potiguar basin, production rose to 13,300 kboed, while Bahia’s output reached 13,500 kboed.

However, PetroReconcavo faces challenges such as transportation constraints in Miranga and occasional maintenance interruptions. Despite these hurdles, the company expects modest improvements from normalized natural gas production in the region.

PRIO’s Production Growth and Market Outlook

For 2025, it maintains a conservative projection of 28,500 kboed. PRIO recorded a 3% monthly increase in production, hitting 114,000 kboed. This growth was largely driven by a 13% rise at the Albacora Leste field after a turbine replacement boosted output to 24,600 kboed.

The Peregrino field also performed well at 38,900 kboed. However, Frade’s production dipped slightly to 39,400 kboed due to planned maintenance scheduled for the coming months.

Market expectations focus on upcoming reserve certifications that could influence Brava’s strategic plans for its onshore operations in 2025. PRIO might adopt more conservative assumptions for certain assets amid delays in acquiring additional stakes in the Wahoo field due to regulatory issues.

Santander views Brava and PetroReconcavo as top picks among Brazil’s independent oil producers. Brava’s sustained high production levels and PetroReconcavo’s steady growth could bolster investor confidence.

Meanwhile, PRIO’s production gains and share buyback program are promising but lack a near-term catalyst for significant stock movement.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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