Petrobras 2Q Oil Output Flat on Maintenance Stoppages, Divestments

Gram Slattery and Marta Nogueira
Friday, July 23, 2021

Brazil's state-run oil company Petrobras on Thursday presented flat production numbers in the second quarter, as the ramp-up off some major platforms was largely offset by maintenance stoppages and divestments.

In a securities filing, Petroleo Brasileiro SA, as the company is formally known, said it produced 2.796 million barrels of oil equivalent per day in the period, a decrease of 0.2% in annual terms and a 1.1% increase from the first quarter.

Crude production came in at 2.226 million barrels per day, down 0.8% from the same period a year ago and up 1.4% in quarterly terms.

Ongoing ramp-ups at two major platforms, known as P-68 and P-70, boosted those numbers, Petrobras said. 

Production numbers were hit, however, by stoppages at several fields in the offshore Campos Basin, as well as at some shallow-water and onshore assets. The divestment of the company's Frade field also hit the firm's figures in annual terms, Petrobras said.

In the filing, the company noted strong growth in domestic gasoline and diesel demand during the quarter.

Domestic diesel sales increased 11.4% in quarterly terms and 28.8% from the same period last year, while gasoline sales in Brazil climbed 12.7% from the first quarter and 36.9% in annual terms. In addition to the progressive loosening of coronavirus-related restrictions, Petrobras cited changes in ethanol blend requirements and a temporary tax relief program as positive catalysts.

In terms of exports, Petrobras said it increased crude sales to Latin America, the United States, Europe and India during the second quarter, while sales to China decreased. 

(Reporting by Gram Slattery and Marta Nogueira Editing by Sonya Hepinstall and Sandra Maler)

Categories: Production South America Floating Production

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