Energy
Brazil Offshore Oil Hit by Regulator’s Crackdown on Drilling
The Valaris DS-17 drillship anchored for maintenance in Guanabara Bay, off the coast of Niteroi, Rio de Janeiro state, Brazil, in 2023.
Photographer: Dado Galdieri/BloombergThis article is for subscribers only.
Brazilian regulators are cracking down on some offshore drilling by oil giants like Petrobras and Equinor ASA, complicating exploration and production projects at a key moment in the nation’s effort to boost crude output.
The drilling delays will complicate the nation’s efforts to reverse last year’s oil-production decline. Prior to 2024, Brazil had been a booming source of non-OPEC supply growth in global oil markets. Should output continue to flatline in 2025, that may signal to the OPEC+ alliance that it can begin raising exports without risking a price-killing supply glut.