Brazil oil and gas output rises nearly 14% in November, more pre-salt reserves to be developed

Brazil's oil and natural gas production reached 4.920 mn barrels of oil equivalent per day in November 2025, with crude output climbing 13.9% from the same month a year earlier despite a monthly decline, according to data from the country’s oil and gas regulator.

The National Agency of Petroleum, Natural Gas and Biofuels (ANP) said oil production totalled 3.770 mn barrels per day (bpd|), down 6.4% from October but up 13.9% compared with November 2024, according to the regulator's monthly bulletin reported by Agência Brasil.

Natural gas production stood at 182.60 mn cubic metres per day, declining 6.3% from the previous month while surging 15.7% year-on-year (y/y).

Pre-salt production accounted for 79.6% of Brazil's total output, reaching 3.910 mn barrels of oil equivalent per day. This included 3.020 mn bpd of crude and 141.30 mn cubic metres of natural gas from 178 wells, representing an 8.5% monthly decrease but a 15.6% annual increase.

Offshore fields generated 97.7% of oil production and 85.7% of natural gas output, with state-controlled oil major Petrobras accounting for 89.35% of total production either independently or in consortium with partners, the ANP said.

The Búzios field in the Santos Basin pre-salt layer led oil production at 744,300 bpd, while the Mero field, also in the Santos Basin, topped natural gas output at 40.80mn cubic metres daily, Agência Brasil reported.

Natural gas utilisation reached 96.9% in November, with 61.87 mn cubic metres per day delivered to market and 5.71 mn cubic metres flared. Flaring increased 5% from October but decreased 8.1% y/y.

Production came from 6,082 wells, comprising 539 offshore and 5,543 onshore installations.

This comes as ANP is prioritising the full development of the country's pre-salt reserves while navigating severe budget constraints, according to the agency's director, Valor reported.

Artur Watt, who took office as director of the ANP in September, identified replenishing oil and gas reserves, regulating energy transition technologies and strengthening fuel market oversight as key priorities.

"This is the moment to put new blocks into the exploration phase, develop the exploration cycle, and sustain production for a period that meets the country's needs," Watt said, noting that ANP studies indicate significant pre-salt growth potential through 2030, after which production is expected to plateau and decline.

The pre-salt polygon covers approximately 150,000 square metres between Espírito Santo and Santa Catarina states, though production currently occurs only in the Campos and Santos basins.

Watt said it may be time to study more favourable conditions to ensure the fullest possible development of the pre-salt and enable extraction from areas not considered mega-fields.

Recent oil auctions exceeded expectations, generating BRL1.0bn ($1.86mn) in signature bonuses in the permanent concession offer and awarding five major blocks under the production-sharing regime, Valor reported. For 2026, ANP plans to offer 451 blocks in the next permanent concession cycle and 26 under production sharing in the pre-salt.

ANP faces significant budgetary challenges having experienced a critical squeeze in mid-2025 that forced layoffs of outsourced workers and service cutbacks, though some restrictions were later partially reversed.