4 More Brazil Concessions Deemed Viable

As Brazil races to become one of the world's biggest oil producers, almost entirely in deep water
oilfields, this news item demonstrates how Brazil is continuing to discover more and more new 
deepwater fields.  

Re: the proposal to install 2 more FPSOs, it reminded me of recent news that shipyards capable of
building FPSOs are fully booked for 2022 and almost sold out for 2023 as well.  I mention this, because
oilfield development via deepwater drilling generally happens while the FPSOs needed to produce the
resulting oil, are being built.

The huge number of FPSOs currently being built are a bullish sign for deepwater drillers, but if 
shipyard capacity begins to constrain future construction of FPSOs, that could put a lid on just how 
strong the impending deepwater drilling boom could ultimately be.

Here's the news release:

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www.oedigital.com/news/493193-petrobras-declares-commercial-viability-at-four-offshore-concessions

Brazilian state-run oil company Petrobras has declared four offshore concessions in the states of Alagoas and Sergipe commercially viable in presentations to the nation's oil regulator, it said in securities filing on Thursday.



The company has proposed installing two major oil platforms known as FPSOs in the region, said the firm, formally known as Petroleo Brasileiro SA.