Petrobras Holds Steady in Q1 2025 as Oil Prices Slide, Shifts Export Focus to Asia

Brazil’s state-run oil company Petrobras reported its first-quarter 2025 operational results on April 29, 2025, revealing a story of resilience and strategic adjustment in a challenging global market.

Petrobras produced 2.77 million barrels of oil equivalent per day (boed) in the first quarter, a slight 0.2% decrease from the previous year. Oil production in Brazil dropped 1% year-on-year to 2.21 million barrels per day.

These figures align with Petrobras’ annual target, which allows for a 4% variation on its 2.8 million boed goal. The company attributes its stable output to improved operational efficiency, fewer maintenance shutdowns, and the addition of new wells, partially offset by natural field decline.

The company brought 11 new production wells online this quarter, six in the Campos Basin and five in the Santos Basin. Notably, the FPSO Almirante Tamandaré began operations in February at the Búzios field, marking a strategic step in maintaining output.

Petrobras also ramped up production at the FPSO Marechal Duque de Caxias in the Mero field. Despite these operational gains, Petrobras faced a tough market. Total sales of oil, gas, and derivatives fell 1.9% year-on-year to 2.86 million boed.

Exports saw a sharper decline, dropping 10.4% to about 760,000 barrels per day. The company’s export mix shifted: while sales to China and the United States decreased, shipments to other Asian markets rose.

Petrobras Shifts Export Focus to Asia Amid Market Volatility

The share of oil exports to Asia, not including China, jumped from 10% to 33%. Petrobras recently signed an agreement with India’s Bharat Petroleum to export up to 6 million barrels of oil annually, starting this year.

This move signals a deliberate pivot toward India and other Asian buyers as Petrobras looks to diversify and stabilize its export revenues. Domestically, Petrobras increased sales of oil products by 2.9% compared to the previous year, driven by higher demand for diesel, gasoline, and jet fuel.

The company processed a record 73% share of pre-salt oil in its refineries, up two percentage points from the previous quarter. This focus on pre-salt oil aims to optimize the production of higher-value products and reduce emissions.

Trade data for January and February 2025 shows Brazil’s refined petroleum exports fell by 20.8% year-on-year, while imports rose by 3.4%.

Russia became the leading supplier of refined petroleum to Brazil, with imports from Russia surging 464%. Petrobras’ first-quarter results reflect a company navigating price volatility and shifting global demand.

The firm’s operational stability, focus on efficiency, and new export partnerships position it to weather ongoing market pressures. The full financial results for the quarter will be released on May 12.

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