Brazil’s pre-salt extraction costs just $8 per barrelStaff Writer | August 16, 2017
Discovered ten years ago, Brazil’s pre-salt area has rapidly become the biggest oil-producing area in the country.
Oil exploration The geological layers
Brazil just announced a fantastic first half, with pre-tax profits reaching $4.4 billion in 2017, a staggering increase from $395 million a year ago.
This is thanks in huge part to falling production and exploration costs, which dropped by 68%.
In June Brazilian output rose nearly a full percent from May to a daily average of 2.675 million barrels. Production in the pre-salt areas alone skyrocketed to an average of 1.353 million bpd, a growth of 6.4% from May.
In July, for the first-time output from the pre-salt wells surpassed the rest of the country’s fields combined.
Now, according to Petroleo Brasileiro chief executive officer Pedro Parente, oil is being extracted from the pre-salt offshore wells at the jaw-dropping cost of just $8 per barrel.
This is an investment opportunity that has not gone unnoticed, attracting domestic as well as foreign interests to invest heavily in exploration in the previously stagnant market. ■