Brazil oil and natural gas output up 5% in May

The total production of oil and natural gas at Petrobras grew 5% in May this year from the previous month, and added up to 2.83 million barrels equivalent per day (boepd). When compared with May last year, the increase reached 2%. Figures were released today (Jun. 8) by the state-run oil giant.

The average oil output alone totaled 2.24 million barrels per day (bpd) in May, an increase of 6% compared to the previous month (2.12 million bpd). Against May 2015, the increase was reported at 1%.

The production of natural gas in the fields across the country, in turn,  liquid petroleum gas not considered, added up to 76.4 million cubic meters a day (m³/d) in May—up 4% from the previous month (73.5 million m³/d).

According to Petrobras, the country's total production in May is the fifth highest monthly average for an output rate registered by the state-controlled firm. This growth is due chiefly to the record-breaking value observed in pre-salt exploration, with the establishment of new wells linked to the Cidade de Maricá production unit, of the FPSO (Floating Production Storage and Offloading) type, the latter located in the Lula Field, in Rio de Janeiro. The result was also made possible by the oil rigs that resumed operation after scheduled halts and correctional maintenance in April.

A new record in pre-salt production

The data indicate that the production of oil and natural gas in the fields run by Petrobras in the pre-salt layer rose 15% in May this year compared to April, reaching 1.15 million boepd and setting a new monthly record.

The oil output in the fields operated by the oil company in the pre-salt layer also showed a record-breaking rate in May single-handedly, by growing 16% from the previous month and hitting an average of 928 thousand bpd.

Costs

The Brazilian oil giant further notes that the average extraction costs of the pre-salt wells have been on the wane, and plunged below $8 a barrel equivalent. Also in decline is the average time needed for building and bringing into operation wells drilled in the region: 89 days now—down 71% from six years ago.

According to Petrobras, the high productivity in pre-salt reserves, which led to a smaller number of wells in a single production system and more efficiency in the construction of wells, have ensured a significant decline in investment in implementation projects and boosted its profitability.

Translated by Fabrício Ferreira