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Leading companies of the Oil sector in Brazil in 2022Posted 15/04/2022
Brazil has a large presence in the world oil sector. For some years now, the country has stood out strongly in the production and marketing of oil and gas. So much so that Petrobras, one of the largest oil companies in Brazil, appears in the current ranking of Forbes magazine.
In conjunction with Wood Mackenzie, Forbes produced a ranking covering the 20 largest oil companies in the world. The document is based on the average volume of oil produced by the companies. In 2003, the volume was 3.4 million barrels/day. Currently, there are about 4 million barrels produced per day.
Ranking overview: the top 5
The leadership goes to Saudi Aramco, a company from Saudi Arabia. In 2003, the company produced a total of 9.9 million barrels of oil and natural gas daily. Now in 2013, the total volume increased to 12.7 million barrels of oil and natural gas per day.
Gazprom, from Russia, appears in second place on the list, with production, in 2013, of 8.1 million barrels/day of oil and natural gas. Iran’s National Iranian Oil Company ranks fourth with production of 6.1 million barrels of oil and natural gas per day in the year 2013.
ExxonMobil, in turn, stands out with 5.3 million barrels of oil and natural gas per day in 2013. Rounding out the top five is the Russian company Rosneft, with 4.6 million barrels of oil and natural gas per day.
Petrobras: the largest Brazilian oil company
Petrobras, a Brazilian oil company, ranks in thirteenth place. The company’s ranking on the list was driven by production growth between 2003 and 2013, with a variation of 66.66%.
While in 2003 the registered production was 1.5 million barrels of oil and natural gas per day, in 2013, the record was 2.5 million barrels of oil and natural gas.
Brief history of Petrobras
Created in 1953, the state-owned multinational held, for a few years, the legal monopoly on oil exploration in Brazil. However, more than two decades after the end of the monopoly, the company, one of the largest oil companies in Brazil, still maintains control of the oil sector.
Crude oil production in 2020
In 2020, a year marked by the pandemic and economic uncertainties, the oil and gas segment in Brazil did not present major concerns.
After all, Petrobras’ crude oil production exceeded one billion barrels, a volume 60 times greater than the production of competitor Shell Brasil.
Also in 2020, the Brazilian oil company maintained its share of 98.5%, which represents practically the country’s total refinery capacity.
With such a solid performance in the market and with its multibillion-dollar operation, Petrobras, one of the largest oil companies in Brazil, is certainly a barrier to entry for potential competitors.
In fuel distribution, Petrobras finds competition
While the oil giant is sovereign in oil exploration and refining in Brazil, in fuel distribution the company suffers from fiercer competition.
Petrobras remains, in fact, the main fuel distributor in Brazil, through its former subsidiary BR Distribuidora.
However, new entrants are gaining strength in this market, such as the companies Raízen (licensed from Royal Dutch Shell in Brazil) and Ipiranga, from the Ultrapar group.
Both have extensive operations in the distribution of diesel and gasoline, reducing Petrobras’ participation in this area.
Pre-salt production in 2021
The Brazilian oil company had many reasons to celebrate in 2021 by achieving record production in the pre-salt layer. In summary, the company obtained an average extraction of 1.95 million barrels of oil equivalent per day (boe/day) throughout the year.
According to Petrobras, the volume (70% of the oil company’s total production in the year) corresponds to twice the production in the region five years ago.
The company’s performance, especially after the pre-salt activities, attracts attention from national and international investors, who believe in the exploration and commercialization of commodities as a form of secure and consolidated economic growth.
Therefore, if you are an investor or a potential investor in the oil sector, or plan to start your commercial operations in Brazil in the segment, count on the experience of Europartner‘s international accounting advisory team.
Contact us and meet our expertise!