Portugal’s Galp Energia expects its oil production in Brazil to grow by 40% in the coming years, driven by the launch of the Bacalhau field, a major offshore project set to start in late 2025, according to Nuno Bastos, Executive Vice President of Upstream.
Currently, Galp produces about 110,000 barrels of oil equivalent per day (boepd) from its assets in Brazil. These include stakes in several deepwater fields in the pre-salt layer of the Santos Basin, a region known for its large oil reserves.
The upcoming production boost will come from Bacalhau, operated by Norway’s Equinor. Galp, through its Petrogal Brasil joint venture with Sinopec (70%-30%), owns a 20% stake in the field. Bacalhau is expected to produce up to 220,000 barrels per day at full capacity. Equinor and its partners estimate more than 1 billion barrels of recoverable reserves in the first phase of the project.
“Once the FPSO reaches plateau over the next few years, Galp’s production in Brazil will increase by around 40%,” Bastos told Reuters during an energy industry event.
In the first quarter of 2025, Galp invested $334 million (295 million euros), focusing on offshore reservoir assessments in Namibia, Bacalhau’s development, and upgrades to its Sines refinery in Portugal for hydrogen and biofuel production.
Bacalhau is one of several major offshore projects that are boosting Brazil’s oil output. The country is becoming a key source of non-OPEC+ oil growth, alongside the United States.
Earlier this week, TotalEnergies announced first oil from the fourth phase of the Mero field, also in the Santos Basin. With five FPSOs now operating, Mero’s total production capacity has reached 770,000 barrels per day.
Related Topics:
- USA EIA Predicts WTI Oil Prices Will Fall in 2025 and 2026
- Oil Prices Fall as EIA Reports Rising Crude Inventories
- USA EIA Unveils Updated Brent Oil Price Predictions