Espirito Santo Oil & Natural Gas Yearbook 2021
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ESPÍRITO SANTO OIL & NATURAL GAS YEARBOOK | 2021
CHAPTER 2 EXPLORATION AND PRODUCTION OF OIL IN ESPÍRITO SANTO
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2.6.2. Projection of Onshore
Production in Espírito Santo
Onshore production is responsible
for the minority portion of the pro-
duced oil and natural gas volume.
The evolution of onshore production
does not significantly affect the total
produced by the State. However, this
activity is important in the regional
socioeconomic development of the
producing municipalities, particularly
in the creation of jobs and income.
By 2025, onshore oil production is
expected to experience an average
annual decline of 3.58%, reaching
in 2025 a production of 2.5 million
barrels. For natural gas, an average
annual drop of 3.62% is projected by
2025, reaching a production volume
of 21.7 million m³.
Charts 23 and 24 present the recent
evolution and projection of onshore
production for 2025. The downward
trend in input production is because
all the main fields are mature and in
a downward production trend (Ap-
pendix II). Moreover, Petrobras has
no interest in developing onshore
assets, which reduces the capacity
to absorb new projects in the region.
Onshore natural gas production does
not necessarily follow oil production.
Consequently, the concentration
in oil production areas differs from
the concentration of natural gas. In
terms of oil production, the Fazen-
da Alegre, Cancã, Inhambu and Fa-
zenda São Rafael fields account for
78.9% of total onshore production.
In terms of natural gas production,
the Fazenda Alegre, Fazenda São
Rafael, Fazenda Santa Luzia and Rio
São Mateus fields account for 80.2%
of the total onshore production. The
natural downward trend in produc-
tion in these fields explains the recent
and future evolution of onshore pro-
duction in the state.
After 2022, the drops in production
are likely to be less intensive due to
the temporary non-interruption of
production caused by low prices, an
episode witnessed in 2020 related
to the Covid-19 health crisis. Further-
more, the sale of Petrobras assets to
other operators could start a process
of revitalization and extension of the
useful life of onshore reserves, which
should improve future production.
It is also worth noting that there are
new onshore projects in Espírito San-
to which have still not been disclosed
by the new companies operating in
the region, as a result of the diversifi-
cation of operators promoted by the
ANP and due to the sale of Petrobras
assets.
As onshore production values are
lower, any new projects or unconsid-
ered interruptions can cause large
deviations from projected volumes.
3.58%
is the expected average
annual decline through
2025 in annual onshore oil
production, reaching 2.5
million barrels
3.62%
is the average annual drop
expected by 2025 in an-
nual onshore natural gas
production, reaching 21.7
million m3
The downward trend
in input production
is due to the fact
that all the main
fields are mature
and with a tendency
to present a decline
in production.
Chart 23 - Projection of Onshore Oil Production in Espírito Santo (in thousands of barrels)
4,690
3,891
3,588
3,472
3,256
2,989
2,818 2,710
2,612
2,491
2016 2017 2018
2019 2020
Production
2021 2022 (p) 2023 (p) 2024 (p) 2025 (p)
Projected
Prepared by: Ideies and LCA
Chart 24-Projection of Onshore Natural Gas Production in Espírito Santo (in millions of m³)
80
62.9
31.1 32.0
27.0
26.1 24.6 23.7
22.8
21.7
2016
2017 2018
2019 2020
Production
Prepared by: Ideies and LCA
2021 2022 (p) 2023 (p) 2024 (p) 2025 (p)
ProjectedView entire presentation