Brazil’s state-controlled oil company, Petrobras, achieved a substantial turnaround in its financial performance for the second quarter of 2023, recording a net profit of approximately $1.6 billion. This marks a significant recovery from the $480 million loss it reported in the first quarter. The increase in profitability occurred despite a backdrop of declining average oil prices.
During the three-month period ending June 30, 2023, Petrobras noted an average production rate of 2.91 million barrels of oil equivalent per day. This figure represents a 5% increase compared to the production rate of 2.77 million barrels in the first quarter. The company has attributed this growth to operational enhancements and the introduction of new production systems.
New Developments and Production Goals
Petrobras successfully commenced production from 14 new wells during the second quarter, evenly split between the Campos Basin and the Santos Basin. The crude oil component of its production rose to 2.32 million barrels per day, up from 2.21 million barrels in the previous quarter.
Chief Financial Officer Fernando Melgarejo expressed optimism, stating, “We had excellent operational performance in the second quarter, driven by the implementation of new production systems and improved efficiency in the fields in operation.”
A significant development for the company was the recent discovery at the Buzios field, which could potentially elevate production levels to 2 million barrels per day by 2030, up from the current output of around 800,000 barrels daily. Enhancing production from existing fields remains a critical priority for Petrobras.
In addition to its production gains, Petrobras updated its proven oil and gas reserves, increasing the total by 500 million barrels to 11.4 billion barrels. Notably, around 85% of these reserves consist of crude oil and condensates, while the remainder is attributed to natural gas.
As Petrobras continues to navigate the complexities of the global oil market, its focus on operational efficiency and resource expansion appears poised to drive further growth in the upcoming quarters.
