The Brazilian National Petroleum Agency (ANP) forecasts that oil companies will invest approximately $900 million in exploration activities within the country this year. This follows a revival in exploration investments in 2025, driven by state-controlled Petrobras's efforts to replenish oil reserves through wildcat drilling.

Drilling Plans and Capital Expenditure

Capital expenditure is set to continue in 2026 with plans to drill 19 exploration wells—five offshore and 14 onshore. Investments in well drilling are expected to reach $601.9 million, constituting 68% of the total $888.3 million earmarked for exploration. The majority of this investment will focus on offshore drilling.

Key Offshore Activities

Petrobras is anticipated to lead offshore efforts, including drilling the Mae de Ouro wildcat in the Potiguar basin on the northern equatorial margin, along with other prospects in the prolific Campos and Santos basins. UK supermajor BP is also scheduled for additional drilling, having chartered the Transocean drillship Deepwater Mykonos for a 10-month campaign. This work will appraise the Bumerangue pre-salt discovery and spud a prospect in the Tupinamba pre-salt area. Furthermore, the ANP estimates an additional $140 million investment for up to four drillstem tests at offshore discoveries in 2026.

Seismic and Onshore Investments

Beyond drilling, exploration investments will include acquiring 16,518 square kilometres of new 3D seismic data, reprocessing 8,900 square kilometres of existing 3D data, and reprocessing 1,523 linear kilometres of 2D data, totaling $134.9 million. In contrast, investments in onshore drilling are expected to be more modest, totaling approximately $34.5 million this year.

Importance for Production Sustainability

Exploration is deemed essential for sustaining and accelerating Brazil's production curves, acting as the cornerstone for long-term resource availability in the oil and gas sector. The country currently produces around 3.6 million barrels of oil and 175 million cubic metres of natural gas per day. Without continuous investment in finding new resources, production from existing fields inevitably declines, leading to higher costs and reduced profitability.