Brazil: Big Oil, big discovery and big plans

And a significant new discovery by BP in the country’s deepwater Santos Basin figures to underpin that reality for years to come.

Announced in August, the promising discovery in the Bumerangue block in water of more than 2,300 m was BP’s largest anywhere in 25 years. And it will figure strongly in the oil major’s plans. “Brazil is an important country for BP, and our ambition is to explore the potential of establishing a material and advantaged production hub in the country,” commented company executive vice president for production and operations, Gordon Birrell.

In a report to its clients, consultant Wood Mackenzie described BP’s discovery as “the biggest deepwater find since Buzios in 2010.”

Such large oil and gas discoveries are not only critical to BP and Brazil, but the world. There has been a dearth in large discoveries in recent years, creating a potential global shortfall in oil supply in the decade ahead.

This “huge” gap is forecast to be as much as 58M bbl of oil per day by 2030 even in a fast transition to clean energy, Rystad Energy project manager, advisory, Andreas Bakke Moan told delegates at the Offshore Support Journal Conference, Asia, in September. The Norwegian energy analysts don’t see peak oil demand coming until 2035.

This revelation has led oil majors like BP to restructure their portfolios, moving spending out of renewables and into hydrocarbon projects. And the timing couldn’t be any better for Brazil.

Brazilian regulator, ANP has scheduled a pre-salt production sharing round for 22 October for 13 blocks in the Campos and Santos Basins which has drawn strong interest. ANP reported 15 bidders have registered their interest for the third cycle of open acreage production cycle. The list reads like a who’s who in Big Oil: BP, Chevron, CNOOC, Equinor, Petrobras, Petronas, QatarEnergy, Shell, Sinopec, TotalEnergies, Petrogal, Karoon, Prio Forte, 3R Petroleum Offshore, and Ecopetrol are all eligible.

Meanwhile, open tenders issued by Petrobras for OSV tonnage will need to support its E&P activities which continue to attract assets from other regions – much of it drawn from the North Sea and Europe -and high-spec newbuilds. Lucrative long-term charters from Petrobras are supporting the placement of shipbuilding contracts at Brazilian shipyards, generating employment opportunities for workers and mariners and expanding the Brazilian-flag fleet.

And the country has big plans for its shipbuilding industry, with spending levels estimated at US$21Bn.

Among its latest fleet additions are eight new diesel electric battery hybrid OSVs for Starnav Serviços Marítimos that will be built at Detroit Brasil shipyard. The deal will see the construction of four platform supply vessels and four oil spill recovery vessels. These diesel-electric-battery hybrid vessels are anticipated to reduce greenhouse gas emissions by 18% compared to traditionally diesel-powered vessels. They will break new ground in maritime battery use and lay the groundwork for potential use of ethanol as a marine fuel.

Just as importantly, these contracts are backed by US$468M from the country’s Merchant Marine Fund (MMF) — an essential component to revitalising Brazil’s shipping and shipbuilding industry. Clearly, things are coming together for the OSV industry in Brazil.

Interested in meeting the major OSV players in Brazil? Make plans to attend Offshore Support Journal Conference, Americas 2025, 7-8 October 2025.