Government Launches Onshore Oil and Gas Production Program

RIO DE JANEIRO, BRAZIL – The Ministry of Mines and Energy launched yesterday, August 22nd, the REATE 2020 — Program for Revitalization of the Activity of Exploration and Production of Oil and Natural Gas in Land Areas. According to Minister Bento Albuquerque, the goal is to double production in ten years, with the gas sector growing at a faster pace than that of oil.

“Production will double by at least 2030, rising from 270,000 barrels per day of oil equivalent to 500,000 barrels. As a result of the cooperation between the REATE 2020 programs and the Novo Mercado de Gás (New Gas Market), we will move from an onshore level of natural gas production of 25 million cubic meters per day to more than 50 million,” said Minister Bento Albuquerque, at the launching of the project.

The portfolio estimates that investments in onshore oil and gas exploration and production will rise from the current threshold of R$1.6 billion per year to approximately R$4 billion per year, with the prospect of generating roughly 700,000 jobs. “Thus, by 2030, the onshore segment will earn R$40 billion in new investments,” he added.

According to the minister, due to the market’s interest, 263 coastal areas for oil and natural gas exploration and production will be auctioned on September 10th, in seven Northeastern states — Alagoas, Bahia, Ceará, Maranhão, Piauí, Rio Grande do Norte, Sergipe, and in northern Espírito Santo.

To revitalize the sector, REATE 2020 includes the stimulation of the establishment of domestic companies, including startups (technology-based companies) and the attraction of foreign investment, among other actions.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error