The Road to Rio looks promising

The three South American countries are at the centre of this century’s black gold rush: billions of barrels of oil equivalent of discovered recoverable resources generating billions of dollars of E&P spending, while creating demand for hundreds of offshore drillships, new floating production, storage and offloading units, and new and existing OSVs, and thousands of jobs for local mariners and workers.

To complete its US$53Bn acquisition of Hess, Chevron had to square off against US-based supermajor ExxonMobil and China’s CNOOC. As partners of Hess in the prolific Stabroek Block, both oil companies claimed they had first rights on the American independent’s stake in the Guyana asset. The legal kerfuffle tied up Chevron’s acquisition of Hess for a year, before the International Chamber of Commerce (ICC) ruled in its favour in the arbitration case.

Both ExxonMobil and CNOOC were disappointed with the arbitration ruling, but there is no appealing the ICC decision.

The acquisition plumps up Chevron’s global oil and gas portfolio, including a 30% position in the Guyana Stabroek Block, which has more than 11Bn barrels of oil equivalent discovered recoverable resource. Chevron chair and chief executive, Mike Wirth, said Hess built “one of the industry’s best growth portfolios including Guyana, the world’s largest oil discovery in the last 10 years.” Added Mr Wirth: “This merger of two great American companies brings together the best in the industry.”

“Petrobras needs offshore support vessels — lots of them”

Despite some hiccups, investment in Suriname’s upstream oil and gas sector is expected to hit US$9.5Bn between now and 2027, according to energy analysts.

Like other international oil companies, Chevron has interests in Suriname and Brazil.

Brazil has ambitions to become the world’s fourth largest oil and gas producer by 2029, primarily through deepwater production from its pre-salt layer. State-owned Petrobras is gearing up to support the country’s goal of reaching 5.4M bbl per day production by 2029. It plans to spend US$77Bn to develop offshore projects over the next five years. It is even investing in offshore blocks outside Brazil, including Colombia, Sao Tome & Principe and South Africa.

To meet its offshore oil and gas production demands, Petrobras needs OSVs — lots of them. Its open tenders for new and existing OSVs of all types, with attractive charter rates and terms, are luring domestic and European vessel owners in droves, while creating new opportunities for Brazilian shipbuilders, which now hold contracts for 24 newbuilds. Petrobras wants at least 52 newbuilds by 2028.

For OSV owners, the Road to Rio, along with those to Georgetown and Paramaribo, look promising, paved with stronger day rates backed by long-term charters.

If you are interested in exploring the market opportunities further and meeting some of the major players, join us for ‘A new cycle of growth: seizing opportunities and maximising return’ at the Offshore Support Journal Conference, Americas, Rio de Janeiro, Brazil, 7-8 October 2025.