Brazil’s Foz do Amazonas Basin is being viewed by top industry players as that country’s top offshore frontier opportunity, with Horizon Engage reporting that aggressive bidding there signals strong private-sector belief in the Equatorial Margin as “akin to Guyana’s Stabroek field”.
According to Horizon Engage Senior Advisor for Brazil and Energy Transition, Mark Langevin, consortia including Petrobras, ExxonMobil, Chevron, and CNPC fiercely contested blocks in the underexplored basin. He said the competition “confirms multi-basin momentum in Brazil’s upstream” and positions the area as the next major offshore play in Latin America.
The Horizon report noted that Shell, Equinor and Karoon also secured 11 blocks in the more developed Santos Basin, while Petrobras and Petrogal moved into the emerging Pelotas Basin, signaling appetite for both infrastructure-ready and frontier acreage.
Brazil has historically led production, but Guyana has emerged as a key contributor since production began at the Stabroek Block. By 2030, more than 85% of Latin America’s new offshore deepwater output will come from Guyana and Brazil, Rystad Energy said in an April 1 report.
Major projects driving growth include Brazil’s Buzios and Bacalhau developments and Guyana’s Uaru, Whiptail, and Yellowtail projects.
Meanwhile, multinational finance firm Dillianz won the only onshore block (Parecis Basin), showing potential for low-cost, nontraditional investment bets.
The 5th Cycle of Brazil’s Permanent Offer licensing round also delivered the “highest signing bonus total to date, US$180 million” despite fewer qualified bidders. Horizon Engage said the result proves the system “can deliver strong commercial results” and is now Brazil’s “go-to tender mechanism”.
Unlike traditional rounds, the Permanent offer model lets companies nominate areas of interest ahead of time. This flexibility, according to Horizon Engage, “improves alignment between investor priorities and offered acreage.” A 3rd Cycle of production-sharing, targeting pre-salt blocks, is already scheduled for October 22.
Environmental concerns halt Petrobras’ plans for equatorial prospect in offshore Brazil | OilNOW
But the report warns that regulatory uncertainty may threaten short-term momentum. Horizon Engage points to a leadership standoff within Brazil’s oil regulator, the ANP. It said Interim Director Patricia Baran gained credibility after overseeing the successful 5th Cycle, prompting some opposition senators to support her over Lula’s nominee, Arthur Watt Neto. Also, Senate President Davi Alcolumbre is reportedly delaying confirmations to extract political concessions, including Petrobras’ drilling license in Block 59.
“Leadership uncertainty at ANP could delay licensing approvals or shift policy posture,” Horizon Engage noted, especially for “environmentally sensitive frontier projects”. The fate of Block 59 is seen as a litmus test for Brazil’s regulatory direction and investor confidence moving forward.
“Brazil is rapidly emerging as a multi-basin offshore growth frontier, but commercial success will hinge on navigating political bottlenecks, especially around environmental approvals and agency leadership,” Horizon Engage concluded.
