Brazil’s Oil Production Dips 2% in January as Natural Gas Output Rises

Brazil’s oil production fell to 3.449 million barrels per day in January 2025, a 2% decrease compared to January 2024, according to new data from the National Petroleum Agency (ANP).

The figures reveal a contrasting trend in the country’s energy sector as natural gas production rose during the same period. Natural gas extraction reached 160.76 million cubic meters per day in January, marking a 4.4% increase compared to January 2024.

This growth partially offset the decline in oil output. The overall combined production of oil and natural gas totaled 4.46 million barrels of oil equivalent per day. Pre-salt fields continue to dominate Brazil’s energy landscape, accounting for 77.9% of total production.

These deep-water reserves yielded 3.471 million barrels of oil equivalent daily in January. This represents a 2.4% year-over-year decrease and a 0.3% drop from December 2024 levels.

The Tupi field emerged as the country’s top producer in January. Located in the Santos Basin pre-salt region, Tupi delivered 788,490 barrels of oil daily and 40.49 million cubic meters of natural gas per day.

Petrobras maintained its commanding market position despite production challenges. The state-controlled company and its consortium partners accounted for 88.56% of Brazil’s total hydrocarbon production in January.

Key Production & Revenue Outlook

This output came from 6,499 wells across Brazil, including 533 offshore and 5,966 onshore wells. The government expects to collect R$120 billion ($20 billion) from oil activities in 2025 through royalties and special participations.

Industry analysts project total revenue from petroleum could reach R$600 billion ($100 billion) between 2025 and 2028. Despite January’s decline, experts remain optimistic about Brazil’s production trajectory.

The Brazilian Institute of Petroleum forecasts oil output will climb to 3.6 million barrels daily by year-end, a 6% increase from 2024 averages. Recent regulatory challenges could impact these projections.

Brazilian authorities have increased drilling oversight since December, temporarily halting operations at several offshore rigs. These suspensions affect both exploration and development activities necessary for production growth.

Oil has surpassed soybeans as Brazil’s primary export, underscoring the sector’s economic importance. The pre-salt discoveries, first tapped in 2008, have transformed Brazil into a major global energy producer.

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