Oil & Gas

Bahia is a pioneer in the exploration and production of oil and gas in Brazil, and is currently fourth place among the producing basins in the country.

The Landulpho Alves Refinery (RLAM), the second largest in Brazil, is located within its territory.

Bahia’s oil and gas production is mainly onshore (land), but the state is in a prominent position in the offshore gas production (in the sea) with its Camamu-Almada Basin, responsible for 6.1% of national production.

The state also has huge potential for non-conventional onshore gas production in Brazil, according to data from Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP). The state already provides much of the infrastructure needed for production since the non-conventional fields are in the same regions of the current conventional oil and gas production fields.

In addition to Petrobras, independent companies such as Alvopetro, Gran Tierra, Imetame and PetroRecôncavo produced oil in Bahia, all of which are part of the Brazilian Association for Independent Oil and Gas Producers – ABPIP (Associação Brasileira dos Produtores Independentes de Petróleo e Gás). Goods and service companies that operate within the industry are also found in the state, such as MFX, an umbilical producer that operates internationally in one of the world’s most competitive markets.

Bahia also has one of the largest, mainly industrial gas markets in Brazil. The Bahia Gas Distributer (Distribuidora de Gás da Bahia) – Bahiagás is the third largest in the country.

With the end of the state monopoly, many exploration areas have been made available through auctions held by the ANP. Petrobras is also selling several assets from its Bahia onshore basins.

Investment Opportunities:

Oil and gas production in conventional and non-conventional fields auctioned by ANP;
Acquisition of assets made available by Petrobras;
Supply of goods and services for independent oil and gas producers in Bahia and other oil and gas producing states in the Northeast region;
Liquefied natural gas imports (LNG) to supply the Bahian and Brazilian markets.

Foto: Manu Dias/SecomCrédito: Manu Dias / GOVBA

The state of Bahia has a significant demand for oil, gas and their derivatives, and is the 3rd largest gas consumer in Brazil and the 1st in the Northeast region. A large portion of production supplies the largest integrated industrial complex in the Southern hemisphere, the Camaçari Hub, where there are large chemical and petrochemical companies and several companies from other industries such as the automotive, tires, soluble cellulose, copper metallurgy, textile, fertilizers, wind energy, pharmaceuticals, drinks, and services.

In addition to being a large consumer, Bahia also has the largest proven natural gas reserve among the Northeastern states. The existence of the Southeast-Northeast Gas Pipeline (Gasene) further contributes to the competitive advantage of the state, adding the possibility of transporting the gas production to the Southeastern region, currently the largest consumer market in Brazil. Bahia also has one of the three Liquefied Natural Gas Regasification Terminals that belong to Petrobras, with the capacity to process 14 million m3/day.

The second largest Brazilian refinery both in complexity and installed capacity, Landulpho Alves Refinery – RLAM, located in São Francisco do Conde, is the main option for oil trading. Thirty-one products are refined there daily in the most different ways. In addition to the known Liquefied Petroleum Gas (LPG), gasoline, diesel and lubricants, the refinery is the sole national food grade producer, a paraffin used in the food and n-paraffin industries.

Bahia also has a private refinery called DaxOil, the third largest in the country, reheating the market for independent producers that operate in the Recôncavo Basin. DaxOil’s proposal is precisely to absorb the raw material produced in the Bahian municipalities by independent producers, expanding the number of buyers.

Focused on generating business for over 26 associates, the Petrobahia Network (Rede Petrobahia) is an association of companies that supply goods and services to the oil and gas exploration, production, refinery, petrochemical, transport, and distribution segments.

Over 70 companies are part of the oil and gas service chain in the state of Bahia, proving the consolidation of the oil industry support service sector. Among these companies are: Halliburton; Baker Hughes; Schahin; Schlumberger; and San Antonio. Bahia also holds a prominent position regarding future oil and gas exploration and production prospects, having stood out in the 11th and 12th ANP auction rounds, by offering blocks with opportunities in conventional and unconventional reservoirs.

In the 11th bid, 36 blocks were sold in the state of Bahia, distributed among the South Tucano (21 blocks) and Recôncavo (15 blocks) Basins, all onshore. In the 12th round, 30 blocks were sold from the Recôncavo Basin.

Another great opportunity for small and medium oil industry players is the announcement, by Petrobras, of the sale of various fixed assets, among which are two onshore oil production complexes located in Bahia, with seven and nine fields each. The complexes mentioned are the Buricaca, located in the region of the Catu and Alagoinhas municipalities, and Miranga, in the Pojuca region, both in the Recôncavo Baiano, with a considerable production margin, including gas.

Crédito: Divulgação / GOVBA

This news further highlights the investment opportunities found within the oil and gas industry in Bahia, both in production and supply of equipment and services. According to Petrobras information, the volume of oil and gas reservoirs is still larger than the accumulated production calculated since the 40s.

In view of these facts, Bahia has several independent producers developing exploration and production projects, such as Alvopetro, Gran Tierra, Imetame and PetroReconcavo, with the latter being the largest independent onshore producer in the country.