In Midst of Coronavirus Crisis, Brazil Deepwater Leading Way in Cost-Cutting

South America, driven by Brazil and its vast offshore pre-salt development, has seen deepwater operational expenditure (opex) drop more than any other region this year, according to Rystad Energy.

In deepwater, South America is dominated by Brazil. State oil company Petroleo Brasileiro SA (Petrobras) alone accounted for nearly 88% of South America’s deepwater opex in the 2013-2020 period, according to Rystad. Overall regional opex fell from roughly $26/boe in 2013 to $12.7/boe in 2020.

The deepwater gains are part of a push in Brazil’s upstream segment to keep costs in check amid turmoil in the energy industry. Petrobras has also cut its employee count by roughly 22% and plans total cost cuts of around $2 billion in 2020 by lowering its overhead and relinquishing office...