Brazil: Oil swell may affect exploration contribution

Wood Mackenzie experts told Reuters on Tuesday (17) that the drop in oil prices could bring a cut of 300 million to 600 million dollars in investments planned for oil exploration in Brazil in 2020, in addition to deferring or even even prevent the development of new borders in the country.

Considering the plans of Petrobras, Anglo-Dutch Shell, Norwegian Equinor, among others, the expectation for this year were contributions of 3 billion dollars in Brazil in exploration. In its business plan, Petrobras pointed out, for example, an average of investments in exploration of US$2.3 billion per year between 2020 and 2024.

"I think everybody… is making an assessment of what it can do to save money, our expectation is to cut capex," Marcelo de Assis, head of Latin American research in the upstream area at Wood Mackenzie, told Reuters. The expert pointed out that exploratory activities are more likely to be carried out, however, the tendency is that companies prefer to generate cash than commit to new commitments.

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