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LatAm Energy Corner
LatAm Energy Corner - Brazil's rising FPSO market
Welcome to the fourth and final edition of this year's LatAm Energy Corner, a quarterly update on the intricate energy dynamics shaping Latin America. Our focus in this edition lands back on Brazil. We are in an auspicious time for the Brazilian floating production storage and offloading (FPSO) market, with many projects reaching their final investment decision (FID) since 2020. Fourteen new FPSOs were contracted from 2020 to this year, six being large units with vast processing capacities to be installed in the Buzios field. We have seen a growth in CAPEX for offshore projects of approximately 18% per year from 2021 to date, going from around $11 billion to a little over $18 billion this year.
Furthermore, the investment level could reach approximately $21 billion in 2026-2027. There is a lot of potential for this market in the near future. Watch the update to learn more about our outlook for the Brazilian FPSO market.
We are delighted to have Thais Vachala, Vice President, Supply Chain Research for Latin America, as our expert for this edition. Thais has more than 10 years of experience in the oil and gas supply chain, as well as midstream and distribution gas segments. She is proficient in strategic research covering subsea technologies, offshore development and portfolio, conceptual design, regulatory issues and offshore construction. She holds a Bachelor's degree in Chemical Engineering from the Federal University of Rio de Janeiro and a Master's in Naval Engineering from Coppe.
All FPSOs that will come into operation by 2026 will significantly increase Brazil's potential production curve and greatly increase Brazilian oil production.
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