The year 2024 ended with 420 exploration blocks under contract, the highest number since the creation of the ANP. This data is available in the 2024 Annual Exploration Report , released September 1 by the Agency, which presents an overview of the performance of the oil and natural gas exploration segment in Brazil from 2016 to 2024.
This progress was driven by the success of the 4th Permanent Concession Offer Cycle and the 2nd Permanent Production Sharing Offer Cycle, held at the end of 2023. As a result of the two auctions, 182 new contracts were signed in 2024, far surpassing the previous record of 67 contracts signed in 2018.
The exploration phase begins with the signing of contracts for oil and natural gas exploration and production. During this phase, studies are conducted to detect the presence of oil and/or natural gas in the areas under contract, called blocks, in sufficient quantities to make their extraction economically viable. If successful in this stage, companies can move on to the next phase of the contract, the production phase.
See more information about the exploration phase.
Block Highlights in 2024:
At the end of 2024, the onshore environment maintained the lead in the number of blocks, totaling 278 blocks under contract compared to 142 in the offshore environment. In contrast, the offshore environment accounted for 60% of the contracted area, 107,000 km², reflecting the larger average size of offshore blocks.
In the offshore environment (offshore), the Pelotas Basin stood out, with 44 blocks, despite no blocks under contract in this basin since 2020. Next, the Santos Basin ended the year with 32 blocks, followed by the Campos Basin with 15, and the Barreirinhas Basin with 11. Regarding area, the Santos Basin maintained the largest contracted area in the offshore environment (29,000 km²), followed by the Pelotas and Campos Basins.
Onshore, the Potiguar Basin led the way with the largest number of blocks under contract, 151, of which 104 were signed in 2024. Next, the Recôncavo, Sergipe-Alagoas, and Espírito Santo Basins ended the year with 32, 28, and 26 blocks, respectively. In terms of area, the Parnaíba Basin maintained the largest contracted area onshore (33,500 km²), followed by the Paraná and São Francisco Basins.
Exploration Activities:
In 2024, no exclusive data surveys were completed. Exploration well drilling in the exploration phase, considered the segment's main performance indicator, showed a significant drop in 2024, with only 10 wells drilled: seven offshore and three onshore, the lowest number since the creation of the ANP.
The sharp decline in the volume of exploratory activities carried out in recent years highlights the importance of implementing measures aimed at boosting the performance of the exploration segment. In 2024, the ANP conducted two regulatory actions in this regard. The action that resulted in the resolution addressing compliance with the Minimum Exploratory Program (PEM) outside the boundaries of the original area was continued. Additionally, a new regulatory action was initiated to evaluate the measures necessary to reformulate the PEM, considering technological advances in the oil and natural gas exploration segment, aspects associated with decarbonizing the industry, and the challenges of improving performance in the exploration phase.
Declarations of Commerciality
Between 2016 and 2024, 54 Declarations of Commerciality were issued, 20 in the offshore environment, by five contract operating companies, and 34 in the onshore environment, by 12 operators. Of the total, six were completed in 2024.
The in-place volumes (i.e., the total volume of oil and/or natural gas in the reservoir) associated with the declarations for the period were estimated at 17.7 billion barrels of oil and 357.3 billion cubic meters of natural gas.
The Declaration of Commerciality is the operator's act of informing the ANP that, after a technical and economic evaluation of the discoveries made in a block, the results indicate the commercial viability of the production project. Upon submission of the Declaration of Commerciality, the contract enters the production phase. Once this declaration is completed, the retained area of ??the block becomes a 'development area.' After the company submits a Development Plan and its approval by the ANP, the field is created.
Investment Forecast
The 2024 Annual Exploration Report also provides investment estimates for the exploration phase, for the period 2025 to 2028, based on the Exploration Work Plans (PTE) submitted by the operators to the ANP. The PTE is the instrument in which operators specify the activities and respective schedules and budgets for each block under contract. Starting this year, the Report will present projected investment values ??in dollars, the currency adopted for PTEs.
Between 2025 and 2028, investments of US$2.33 billion are planned for the exploration phase, with US$1.55 billion, 67% of the total, concentrated in 2025.
During this period, the offshore environment is expected to absorb approximately 94% of the resources, corresponding to US$2.20 billion; 6%, or US$0.13 billion, is expected to be spent onshore. This distribution follows the pattern of recent years, reflecting the higher cost of offshore activities.
Well-related activities continue to lead investment, with US$2.02 billion in the period, followed by the purchase of non-exclusive data. Among the offshore basins, Santos, Campos, and Pelotas lead the investment forecast. Onshore, the Parnaíba, Paraná, and Potiguar basins stand out.
Detailing the forecasts for 2025, of the US$1.55 billion projected, 95% will be invested in the offshore environment, with an emphasis on drilling eight offshore wells in the Campos and Santos Basins, as well as another 17 onshore wells distributed across the Parnaíba, Potiguar, Amazonas, and Espírito Santo Basins.
See also: Oil and natural gas production reaches all-time high in July
Source: National Agency of Petroleum, Natural Gas and Biofuels
