Brazilian indies enter rapid production growth phase

M&A activity may have slowed in recent months, but turbocharging production is the new goal for the country’s emerging independents

Brazil’s expanding roster of independent E&Ps are having a strong year. Production is rising, their portfolios are growing rapidly due to NOC Petrobras’ divestment drive and substantial growth is expected over the next decade. Cherry-picking non-core and maturing assets is just the beginning for the country’s indies. And while consolidation may have stalled, the immediate priority for firms is reversing production declines and kickstarting capex on upstream revitalisation. “Some Brazilian indies managed to increase production in the last quarter, and this is likely to continue to be the case in the coming months, as these companies are now reaping the benefits of ongoing workover program