The Brazilian oil and gas regulator National Agency of Petroleum, Natural Gas and Biofuels (ANP) has approved the temporary suspension of the next oil and gas exploration and production bidding round (17th Bidding Round) planned in 2020, due to the coronavirus crisis. The National Energy Policy Council (CNPE) will set up a new timetable for the bidding round process.
Meanwhile, due to the COVID-19 pandemic and the oil price war, the Brazilian national oil and gas company Petrobras has decided to accelerate its announced crude oil production cut, from 100,000 bbl/d to 200,000 bbl/d, which accounts for around 6% of its total production. In addition, the company will reduce its refineries output and cut its costs, most notably in the midstream segment. Earlier in March 2020, Petrobras had decided to cut planned investments for 2020 from US$12bn to US$8.5bn (-29%), delaying exploratory activities, interconnection of wells and construction of production and refining facilities. In addition, the company decided to reduce its operating expenses by US$2bn by mothballing operational platforms in shallow water fields, optimising production logistics and postponing new material contracts for 90 days.