March 2, 2024
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OIL & GAS

Brazil Set to Join OPEC+ in January

Brazil is expected to join the OPEC+ group of oil-producing countries in January, according to the CEO of Petrobras (Brazil’s state-run oil firm). However, the CEO clarified that Brazil would not participate in the group’s coordinated output caps approaching 2 million barrels per day (bpd) for early next year.

“There is no quota,” Jean Paul Prates said in an interview. “We would never be part of an organization that imposes (production) quotas to Brazil, Petrobras is a publicly traded company, and we cannot have quotas,” according to Reuters.

Following a full technical analysis, Brazil’s energy minister declared on Thursday that his country was keen to join OPEC+. The office of President Luiz Inacio Lula da Silva acknowledged receiving the invitation but stated he had not yet provided a formal response.

Prates, who in October received OPEC Secretary General Haitham Al Ghais in Brazil, pointed out that OPEC+ is a group that includes nations without voting rights and without production caps, which would include Brazil.

“Brazil would start participating in the meetings as some kind of observer member, which I think is really nice,” Prates said, adding the move would be key to OPEC’s and Brazil’s energy transition efforts.

He expects Brazil to formally accept the invitation by June.

Brazil, the largest oil producer in South America, produces around 4.6 million barrels per day of oil and gas.

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