MercoPress. South Atlantic News Agency

Petrobras output down in second quarter Bolsonaro confident his friend Putin will supply him with diesel fuel

Petrobras’ hydrocarbons output stood at 2.6 million barrels of oil equivalent per day (BOE/day) in the second quarter, down 5% from the same period last year.

Oil exports by Brazilian energy giant Petrobras fell by 28.5% in the second quarter of 2022, to 531,000 barrels per day (b/d), compared to the same period a year ago, the company said in its quarterly production and sales report. The news comes when the country is looking for cheaper opportunities to import diesel fuel from countries currently free of sanctions.

Energy minister of Mines and Energy, Adolfo Sachsida said he had contacted the Foreign Affairs ministry asking about countries which are not exposed to international sanctions so that Brazil can buy the much needed fuel

“We are contacting all countries not sanctioned to bring cheaper fuel,” he stressed in a conversation with journalists alongside President Jair Bolsonaro at a gas station in Brasília.

Bolsonaro said that diesel from Russia will arrive in Brazil “as soon as possible” if “everything is clear.” He added, ”my relationship with the Russian government is not good. It is exceptional.”

Petrobras said that in the first quarter of 2022, with exports totaling 543.000 barrels, this meant a drop of 2%. The company said reduction was due to lower oil production, higher refinery load, greater sales in the domestic market, and lower exports in progress compared to the first quarter.

Petrobras’ oil, natural gas, and liquid natural gas (LGN) production stood at 2.6 million barrels of oil equivalent per day (BOE/day) in the second quarter, down 5% from the same period last year.

The oil company’s pre-salt production accounted for 73.2% of the total in the second quarter. As a result, the total production operated by the company registered a drop of 1.2% in the annual comparison, reaching 3.55 million BOE/day.

In its statement, Petrobras said the drop in production and exports was already expected and did not impact the annual target.

Meantime Mines and Energy minister reported that fuel gasoline and diesel fuel prices are expected to drop 10 cents per liter because of the extension of the deadline for fuel distributors to meet their 2022 decarbonization targets.