Petrobras, the Brazilian state-run oil company, has reported a significant 7.6% increase in oil production during the second quarter (Q2), reaching 2.32 million barrels per day (mbbl/d) in Brazil.
This rise is attributed to the ramp-up of new production vessels, which have notably boosted output, according to a Reuters report.
In Q2, the company saw enhanced productivity from four floating production vessels. One vessel reached its peak production, while another commenced operation ahead of schedule, contributing to the overall increase for the period.
The company's total production, including oil, gas and gas liquids, rose to 2.91 million barrels of oil equivalent per day (mboe/d), a 7.8% increase from the previous year.
Sales of oil, gas and derivatives also increased to 2.98mboe/d, a 1.6% increase from last year.
Exports of oil and derivatives from Petrobras climbed by 2.7% to approximately 874,000bpd.
During this quarter, China remained the primary recipient of the company's oil, accounting for 54% of total exports, a four-percentage-point increase from the same period last year.
Meanwhile, the US saw an increase in its share of oil exports from Petrobras, receiving around 8%, up from 5% in Q2 of the previous year.
Petrobras CEO Magda Chambriard had indicated that the company is considering altering its export strategy in response to the annoucement of higher US tariffs on South American countries.
The company may shift its focus from the US market and increase its oil exports to Asia and Pacific regions.
Additionally, Petrobras is exploring the sale of Polo Bahia onshore oil and gas operations in Bahia state.
The Polo Bahia Terra, which currently produces less than a single well in the pre-salt region, stands out for its high production costs compared to the prolific pre-salt deep-water fields that generate more than 70% of Brazil's oil output.
The company is evaluating various options for the Polo Bahia hub, which includes 28 onshore fields, with a focus on returns and shareholder interests.
“Petrobras reports 7.6% increase in oil production in Q2” was originally created and published by Offshore Technology, a GlobalData owned brand.
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