Business

The (promising) state of Brazil’s oil sector, during the pandemic

Oil has been one of the few Brazilian economic sectors largely unharmed by the Covid-19 pandemic. Further improvements are expected as opportunities open for foreign companies

Oil rig and platform in Rio de Janeiro. Photo: Marchello74/Shutterstock
Oil rig and platform in Rio de Janeiro. Photo: Marchello74/Shutterstock

Even with Brazil’s catastrophic coronavirus epidemic — which disrupted nearly all sectors of the economy — the country still managed to produce 2.94 million barrels of oil per day last year, 5.5 percent more than in 2019. Latin America’s biggest market is now the world’s seventh-largest oil producer, overtaking OPEC big hitters Venezuela and the United Arab Emirates.

And there has been further good news for the country’s oil sector, with reports of new deepwater reserves discovered off Brazil’s northern coast.

Meanwhile, state-controlled oil firm Petrobras has implemented a broad divestment plan that is set to make room for...

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