Prio Rises Among Brazil’s Oil Giants with Major Field Acquisitions and Production Gains

Prio S.A., one of Brazil’s largest independent oil producers, reported a daily average output of 99,800 barrels of oil equivalent per day in May 2025, according to official company data.

This performance, while robust, reflects both the company’s aggressive expansion and the operational hurdles typical in Brazil’s offshore sector.

Prio, listed as PRIO3 on the B3 exchange, specializes in the revitalization and operation of mature oil fields in Brazil’s Campos Basin and has rapidly expanded its portfolio through strategic acquisitions.

In May, the Frade field produced 22,837 barrels per day, rebounding from a planned maintenance shutdown but still trailing recurring targets due to a gas compression failure.

This technical issue halted Frade’s oil sales for the month, underlining the operational risks inherent in offshore production. The Polvo and Tubarão Martelo cluster, another core asset, averaged 10,688 barrels daily, a slight month-on-month decline.

Two wells remained offline due to pump failures, with workover operations pending regulatory approval. Albacora Leste, where Prio holds a 90% stake, produced 26,671 barrels per day, down 2% from April as compressor replacements and minor setbacks weighed on output.

Peregrino, Prio’s latest and most significant acquisition, contributed 39,570 barrels daily in May. The company recently secured a 40% stake in the field, with an option to acquire the remaining 20%.

The full transaction, valued at US$3.35 billion, will add 202 million barrels of reserves and make Prio the sole operator, pending regulatory approval. Peregrino’s December 2024 output, following the acquisition, had already pushed Prio’s total production above the 100,000-barrel mark.

Prio’s Performance Snapshot

Despite these operational advances, Prio’s sales in May dropped to 2.32 million barrels, a 25% decrease from April. The decline stemmed from the Frade outage and ongoing maintenance elsewhere.

Analysts expect output to stabilize around 100,000 barrels daily until the Wahoo field comes online, projected for late 2025. Financially, Prio reported R$14.36 billion ($2.52 billion) in net sales for 2024 and net income of R$10.3 billion ($1.81 billion).

The company increased its share capital by R$3 billion ($526 million) in late 2024 to finance ongoing investments. Revenue estimates for 2025 have been revised downward to R$14.8 billion ($2.60 billion), reflecting market caution after recent setbacks.

Prio’s strategy relies on acquiring underperforming assets, streamlining operations, and leveraging Brazil’s regulatory framework to maximize tax credits.

In Q4 2024, net profit surged 231% year-over-year to $1.1 billion, largely due to a one-off tax credit from asset transfers. Looking ahead, Prio faces the challenge of integrating Peregrino, restoring full capacity at Frade, and bringing Wahoo online.

The company’s low operating costs and focus on mature fields offer resilience, but operational risks and regulatory delays remain significant.

Prio’s story is one of calculated expansion, careful capital management, and the constant balancing of growth ambitions with the technical realities of offshore oil production.