Petrobras posts slight drop in first-quarter oil and gas output

Petrobras reported on Tuesday oil, gas and gas liquids production of 2.77 million barrels of oil equivalent per day (boed) in the first quarter, down 0.2 per cent from a year earlier.

Petrobras' oil production in Brazil fell by one per cent year-on-year, to 2.21 million barrels per day (bpd), said the firm, adding that the Almirante Tamandare FPSO started producing in February at the country's Buzios field.

"The start of operations of the FPSO Almirante Tamandare is strategic for Petrobras and represents a sustainable expansion of production," said Renata Baruzzi, Head of Engineering, Technology and Innovation in Petrobras' sales and output report.

The firm's results were in line with its guidance for the year, that allows for a four per cent variation on its 2.8 million boed production target.

Total sales of oil, gas and derivatives reached 2.86 million boed, said the firm, a 1.9 per cent drop in comparison with the first quarter of 2024.

Total exports fell by 10.4 per cent on a year-on-year basis, to about 760,000 bpd, said the firm.

While exports in general declined, the firm saw the share that it sends to Asia, excluding China, grow from 10 to 33 per cent of oil exports. In the first quarter the firm inked a deal with India's Bharat Petroleum Corporation to export up to six million barrels of oil per year, starting in 2025.

"The agreement strengthens commercial relations between Petrobras and the Indian refining sector, highlighting the importance of India as a market for Brazilian oil," said Petrobras in the filing.

Petrobras is set to release full first-quarter earnings on May 12.

(Reporting by Fabio Teixeira in Rio de Janeiro and Andre Romani in Sao Paulo; Editing by Kylie Madry, Natalia Siniawski and Sonali Paul)