Brazil’s Share Regime Drives Surge in Oil and Gas Production, report says

By Brazil Stock Guide – Brazil’s oil and gas production has seen substantial growth under its share regime, with the latest report from the Institute for Strategic Studies in Petroleum, Natural Gas, and Biofuels (INEEP) revealing a sharp increase in production. In 2024, Brazil produced approximately 1.3 million barrels of oil equivalent per day (MMboe/d), contributing around 38.7% of pre-salt output and 30.3% of national production. By mid-2025, output grew to 1.6 million boe/d, further solidifying Brazil’s position in the global energy market.

The period between 2017 and 2024 saw Brazil’s oil and gas production under the share regime grow at a remarkable annual rate of 115%. This growth was driven by high productivity from pre-salt fields, as well as the commencement of production from excess volumes from the onerous assignment. Key fields such as Búzios and Mero produced an average of 597,800 and 419,600 boe/d, respectively.

While the share regime has contributed significantly to Brazil’s energy security, boosting public revenue through royalties and oil sales, it also reflects a broader shift in the country’s oil exploration policies. In 2016, the government revised the rules governing the share regime by eliminating the obligation for Petrobras (PETR3.SA) to be the sole operator in all blocks, with a minimum 30% stake.

Instead, Petrobras retained the right of first refusal, allowing the company to choose whether or not to participate in each consortium. This regulatory change reduced Petrobras’ financial burden but also diminished the state’s direct control over Brazil’s largest oil reserves, creating space for multinational companies like TotalEnergies (TOTF.PA) and Shell (SHEL) to have a larger role in pre-salt exploration.

In 2024, Petrobras maintained its dominant position, accounting for 64% of the production under the share regime. However, the influx of foreign investment from 14 multinational companies highlights the growing importance of external players in Brazil’s oil sector. These companies are increasingly influencing the trajectory of pre-salt exploration, making Brazil a more open and competitive market.

As of mid-2025, Brazil’s oil exports continued to rise, with the country sending 56.6% of its total production to international markets. China remains the leading destination, receiving 46% of Brazilian exports, followed by the United States and Spain.