Key non-Opec producer Brazil posted output of 2.93mn b/d for September, up over 400,000 b/d year-on-year and second only to the previous month’s all-time high of 2.99mn b/d (see chart). The IEA projects that Brazil will be second only to the US (and just ahead of Iraq) in terms of global oil output growth to 2024, by when it reckons production will be just shy of 4mn b/d.
These ambitious expansion plans are based on tapping massive reserves from ‘pre-salt’ deepwater formations. Key players here include Shell, Total and BP as well as state firm Petrobras. Though the leap in output over the coming years is all but assured given investment commitments already in place, growth beyond this has started to look shaky: two highly-anticipated ‘auctions’ for offshore exploitation rights flopped this week. Petrobras, partnered by Chinese state firms, was the only bidder in the 6 and 7 November auctions. International majors say the terms on offer were too tight. (CONTINUED - 335 WORDS)
