By Brazil Stock Guide – Brazil’s average annual production of oil and natural gas climbed to a record 4.897 million barrels of oil equivalent per day (boe/d) in 2025, according to figures released on Feb. 2 by the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis. The volume was 12.7% higher than the previous record set in 2023 and 13.3% above 2024 levels, marking the strongest annual output growth in more than a decade.
Crude oil production averaged 3.77 million barrels per day (bpd), a 12.3% increase from the prior year and the highest level ever recorded. Natural gas output reached 179 million cubic meters per day, up 17% year over year. The expansion reflects the startup of new offshore wells, higher utilization of existing production units and the continued maturation of Brazil’s largest deepwater fields.
Pre-salt as the growth engine
The bulk of Brazil’s output comes from the so-called pre-salt, a geological layer located beneath thick salt formations in ultra-deep waters off the southeastern coast. In 2025, pre-salt reservoirs accounted for 79.63% of national oil and gas production, underscoring their dominance in the country’s energy mix. Post-salt offshore areas contributed 15.45%, while onshore fields represented just 4.92%.
Monthly data highlights the acceleration at the end of the year. In December, total oil and gas production reached 5.237 million boe/d, up 6.4% from November and nearly 20% higher than December 2024. Pre-salt output alone averaged 4.164 million boe/d in the month, accounting for 79.5% of the national total.
According to the ANP, such month-to-month variations are typical in offshore production systems and reflect a mix of scheduled maintenance, well interventions and the gradual ramp-up of new units.
Offshore dominance and Petrobras control
Offshore fields supplied 97.9% of Brazil’s crude oil and 86.5% of its natural gas production in December, reinforcing the country’s structural reliance on deepwater assets. Fields operated by Petrobras, either alone or in partnership with international oil companies, accounted for 90.03% of total national output.
The Tupi field, located in the Santos Basin pre-salt, remained Brazil’s largest producing field, delivering 838,980 bpd of oil and 41.79 million cubic meters per day of natural gas in December. Among production units, the FPSO Almirante Tamandaré led oil output at the Búzios field, while the FPSO Guanabara topped gas production at the Mero field.
Gas utilization and efficiency gains
Beyond volume growth, the data points to operational improvements. Brazil’s natural gas utilization rate reached 97.5% in December, meaning only a small share of associated gas was burned off. Gas flaring declined to 4.86 million cubic meters per day, a drop of nearly 15% from November and 14% from a year earlier.
Higher gas utilization is a key metric for regulators and investors, as it reflects both efficiency gains and compliance with environmental standards. Brazil has faced international scrutiny in the past over flaring levels, particularly as production expanded rapidly in deepwater areas.
Why it matters
The record-setting output cements Brazil’s position as one of the world’s fastest-growing large oil producers, alongside the U.S. and Guyana. The expansion strengthens the country’s role in global crude supply at a time of heightened geopolitical risk and shifting energy trade flows.
However, the concentration in ultra-deepwater pre-salt assets also raises long-term challenges. Production growth depends on continued capital investment, regulatory stability and Petrobras’s execution capacity, while environmental licensing and global energy transition pressures could shape the pace of future development.
Looking ahead to 2026, Brazilian output is expected to fluctuate with the commissioning of new floating production units, planned maintenance shutdowns and well interventions. Even so, the 2025 record underscores a structural shift: Brazil’s energy profile is now firmly anchored in large-scale offshore production, with global implications for oil markets, investment flows and energy security.
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