Page 14 - LatAmOil Week 29 2020

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Brazil increases crude oil

exports by 36.8% in H1-2020

BRAZIL increased its exports of crude oil by consumption on the back of the coronavirus
36.8% year on year in the first six months of (COVID-19) pandemic.
2020, according to government trade data. In late March, Petrobras reduced yields by
The country’s crude exports reached 200,000 bpd in the face of sliding demand and
38.98mn tonnes, or 1.56mn barrels per day lower global oil prices. But it rapidly reversed the
(bpd), between January and June, bringing in a production cut, which was equivalent to around
total of $10.3bn. During the same period, Brazil 3% of its total oil output, when it became clear
imported 4.1mn tonnes (164,451 bpd) of crude that Chinese demand had remained strong.
oil worth $1.7bn, dropping by 11.5% y/y. Most of Brazil’s oil production consists of
More than half of Brazil’s oil exports in the high-quality grades of crude that can be sold to
first half of the year went to China. The East a wide range of buyers – including refineries that
Asian country bought 21.9mn tonnes (878,407 turn out low-sulphur marine fuels that comply
bpd) of crude, accounting for 56% of the total. with the IMO 2020 standard. By contrast, other
The remaining 44% went to 19 other coun- Latin American producers such as Mexico,
tries. Of these, the US was the largest importer, Colombia and Ecuador produce lower-quality
receiving 2.16mn tonnes (86,637 bpd), while grades that tend to find more limited markets.
India took 1.9mn tonnes (76,209 bpd). Brazil has seen oil production rise in recent
Brazil’s national oil company (NOC) Petro- years as Petrobras and other companies have
bras has embarked on a strategy to increase brought offshore fields in the pre-salt zone on
exports, especially to Asia, in recent months. It stream. Its output levels rose by 7.8% y/y in 2019,
is doing so to compensate for domestic reduced reaching 2.8mn bpd.

China was the main destination for Brazilian oil in the first half of the year (Photo: Açu Petróleo)

Petrobras sells offshore oilfields to Trident

BRAZIL’S state-run oil and gas major Petro- that the transaction would be finalised pending
bras has completed the sale of a stake in Polos the payment of an additional $650mn.
de Pampo e Enchova, a cluster of 10 offshore The cluster, which Petrobras initially began
oilfields, to the independent company Trident developing in the 1980s, includes the Enchova,
Energy do Brasil. Enchova Oeste, Marimba, Pirauna, Bicudo,
Petrobras reported last week that the offshore Bonito, Pampo, Trilha, Linguado and Badejo
fields had been sold for $365.4mn. It also stated fields.

P14 www. NEWSBASE .com Week 29 23•July•2020