January 20, 2025 [Oil Price]- Brazil’s state-owned oil and gas multinational Petroleo Brasileiro S.A., aka Petrobras, saw output from its refineries hit an all-time high in 2024 thanks to record production of gasoline and S-10 diesel. Petrobras reported that gasoline output totaled 24.4 billion liters, eclipsing the previous record of 24.2 billion liters posted in 2014 while diesel production reached 26.3 billion liters. The company’s annual refinery utilization rate was 93.2% last year, up from 92% in 2023.

Last year, Petrobras lowered capital expenditure (capex) for 2025 to $17 billion from an earlier estimate of $21 billion. According to the company, the lower capex is more realistic and in line with its financial wherewithal. In its latest strategic plan, Petrobras plans to invest $102 billion in the 2024-2028 period, good for a 31% increase over the previous plan amid pressure from Brazil’s President Luiz Inacio Lula da Silva for the firm to ramp up investments in a bid to prop the country’s economy and generate local jobs.

Previously, global research and consultancy group Wood Mackenzie predicted that Brazil’s private oil companies will increase oil production by 75% from 1.221Mb/d to 2.123Mb/d by 2030. According to WoodMac, international oil companies such as Shell Plc ,Equinor ASA, TotalEnergies SE, Repsol Sinopec Brasil S.A. and Petrogal will be among the top producers thanks to their partnership with Petrobras in the pre-salt and fields under development. Brazil’s oil and gas production has hit the highest level ever, with oil output increasing 18.6%Y/Y to 3.51 million barrels per day while natural gas production grew 13.6%Y/Y to 154.08 million cubic meters per day.

Last August, Petrobras and Colombia’s integrated energy company Ecopetrol S.A. confirmed a large natural gas discovery at the Uchuva-2 well off Colombia’s coast. Uchuva-2 is a deepwater well with natural gas previously discovered in the nearby Uchuva-1 well, drilled in 2022.

According to a Petrobras official, the promising area off Colombia’s coast could justify a large project to supply natural gas to the Andean country and for exports.