Petrobras (PETR3; PETR4) reached its highest oil and gas production levels in 2025 when the company produced almost 3 million barrels of oil equivalent every day because it expanded its pre-salt field operations and started using new offshore platforms.
The company reported average annual operated production of 2.99 million boed in 2025, which represented an 11 percent increase from the previous year. Total production reached 3.081 million boed in the fourth quarter, which marked an 18.6 percent year-on-year increase but experienced a 1.1 percent decline from the third quarter because of planned maintenance work at Campos Basin platforms including Marlim and Voador.
The fourth quarter production report showed that pre-salt output contributed 82 percent of total production, which highlighted the deepwater assets of Santos Basin as a critical operational resource. The full-year pre-salt production increased 11.4 percent from the previous year to reach 2.45 million boed.
Petrobras' flagship deepwater project in Búzios, Rio de Janeiro, reached a production level of 1 million barrels per day in October, which increased its installed capacity to approximately 1.15 million bpd. The newly installed FPSO Almirante Tamandaré platform, which holds the record as the largest platform to operate in Brazil, generates approximately 240,000 bpd while P-79 unit is projected to produce an additional 180,000 bpd of capacity.
Reserve Replacement at 10-Year High
Petrobras achieved its best reserve replacement results during the past ten years, while the company produced its highest operational output. In 2025, the company expanded its proven reserves by 1.7 billion barrels of oil equivalent, which resulted in a reserve replacement ratio (RRR) of 175%. The reserve life index stands at 12.5 years.
The production gains resulted from the installation of eight new offshore wells and enhanced operational efficiency, which increased by 3.6 percentage points compared to 2024.
Oil Exports Surge, China Leads Demand
The country achieved its highest export record through increased oil production. The country exported 765000 barrels per day of crude oil during 2025 which represented a 27 percent increase from the previous year. The exports in the fourth quarter reached 1.236 million barrels per day which represented a 78.6 percent increase compared to the same period last year with China accounting for 52 percent of total shipments.
Petrobras established extended supply agreements with Indian state refiners which will remain active until March 2027 and allow for the delivery of 60 million barrels of crude oil.
Refining Output Falls
Refining output decreased by 6.4% to reach 1.702 million bpd in the fourth quarter because upstream production experienced growth. The total utilization rate of refineries fell to 89% down from 95% a year earlier because maintenance stoppages and expansion works at the Henrique Lage refinery (Revap) in São Paulo which will increase distillation capacity by 19,000 bpd once completed.
Shares Rise as Ibovespa Hits Record
The Brazilian stock market reached its highest point in history as Petrobras achieved exceptional operational results which brought the Ibovespa index to 189400 points during morning trading. This increase of 1.87 percent resulted in both common and preferred shares of the company reaching an increase of more than 2 percent.
The Citi analysts found that fourth-quarter operational results met their expectations despite the decline in international oil prices and the minor production decrease during that quarter. The bank maintains a neutral rating on Petrobras ADRs with a $12.50 price target, projecting lower short-term EBITDA and more modest ordinary dividends.
Banco Safra and Itaú BBA expect fourth-quarter EBITDA to decline 9% and 12%, respectively, citing a 7% drop in oil prices during the period.
Concerns Over Exploration Slowdown
The industry groups point out that Brazil needs to speed up its exploration activities because the country relies on both its current output and its reserve increases to safeguard its energy supply for future needs. The Institute for Strategic Studies of Oil Gas and Biofuels (INEEP) reported that the period from 2016 to 2025 saw the drilling of 203 wells whereas the time between 2006 and 2015 produced 936 wells.
The United Federation of Oil Workers (FUP) stated that Brazil requires urgent expansion of its oil reserves to maintain its position as a global leader in oil and gas markets which they believe requires increased funding for exploration of new frontier regions while the nation moves forward with its energy transition plans.
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