Brazil’s oil reserves drop 6.7% in 2020, ANP says

RIO DE JANEIRO, BRAZIL – Brazil’s proven reserves (1P) of oil fell 6.7% in 2020, compared to 2019. According to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), 11.89 billion barrels were declared last year.

The ANP points out that the impacts of the Covid-19 pandemic on the development of oil and gas exploration and production projects, and the record production registered in 2020, help explain the drop in reserves.

In general, the volume of reserves is negatively impacted by production during the year and positively impacted by additional reserves from new development projects and declarations of commerciality of discoveries. Revisions can also impact the numbers due to technical and economic factors.

Last year, 1.076 billion barrels of oil were produced in Brazil. The country was only able to replenish 25.6% of reserves, equivalent to 275 million barrels.

While the post-salt reserves fell 24.5%, there was an increase of 3.37% in the pre-salt compared to 2019, to 8.511 billion barrels.

Meanwhile, the 2P reserves (proven and probable) totaled 17.496 billion barrels in Brazil in 2020, a 3.3% drop. The 3P reserves (which include possible volumes), in turn, fell 24.6%, to 20.273 billion barrels.

In natural gas, 1P reserves of 337.238 billion cubic meters were declared, a drop of 7.9%. There was also a 59.6% decline in 2P reserves (408.343 billion cubic meters) and 72.1% for 3P reserves (450.247 billion cubic meters).

According to the ANP, proven reserves correspond to the amount of oil or natural gas that geoscience and engineering data analysis indicates with reasonable certainty as commercially recoverable. When probabilistic methods are used, the probability that the amount recovered is equal to or greater than 90%.

For probable, the probability that the amount recoverable is equal to or greater than the sum of the estimates of proven and probable reserves, should be at least 50%. For possible reserves, the probability that the amount recoverable is greater than or equal to the sum of the estimates of proven, probable, and possible reserves should be at least 10%.

Source: Valor