Brazil’s May oil output slashed by pandemic

Brazil’s production of oil shrank 6.5 percent in May 2020 from April, and rose 1.3 percent year on year. Natural gas production went down 7.8 percent in the monthly comparison, and slipped three percent from the same month the year before. The figures come from the Monthly Report on Oil and Natural Gas Production, published today by the National Agency of Oil, Natural Gas, and Biofuels (ANP).

The country’s May output was a daily 3.485 million barrels of oil equivalent, with a total of 2.765 million barrels of oil and 114 million cubic meters of natural gas every day.

According to the agency, the main reasons behind the slash in production was the stop made by floating production, storage and offloading vessels (FPSO) Mangaratiba and Cidade de Angra dos Reis, and the restriction on the production at oil rigs P-67, P-74, and P-76.

“In May, 34 fields had their production temporarily cut short due to the effects of the COVID-19 pandemic, of which 16 maritime and 18 land fields, and a total of 60 maritime production units still have not resumed production. In April, 38 fields and 66 units had their production halted for the same reason,” ANP reported.

Pre-salt fields accounted for 67.8 percent of the national output in May, with a daily 2.363 million barrels of oil equivalent. These were 1.875 million barrels of oil and 77.57 million cubic meters of natural gas every day at 115 wells. The reduction in pre-salt production was nine percent from the previous month, but up 12.2 percent from May 2019.

Maritime fields accounted for 96.5 percent of the oil produced in the month and 86 percent of natural gas. “The fields operated by Petrobras were responsible for 95.9 percent of oil and natural gas produced in Brazil. However, the fields where Petrobras holds exclusive stakes produced 41.8 percent of the total,” ANP said.