The upstream oil and gas segment is led by Equinor, which, in partnership with Petrobras, operates the Roncador field in the Campos Basin and recently commissioned the Bacalhau field in the Santos Basin. Bacalhau, with a planned capacity of 220,000 barrels per day and a total investment of $8 billion (40% Equinor-owned), is the first pre-salt field in Brazil operated entirely by a foreign company and represents Equinor’s largest international project. The company projects total investments in Brazil will reach $25 billion by 2030. However, Equinor has recently shifted its global strategy to reduce renewable energy investments by 50%, reallocating €4 billion towards increasing oil and gas production. This pivot underscores a prioritization of profitability and faster returns amid rising costs and uncertain renewable contract markets.
Renewable energy investments remain significant, totaling $1.8 billion since 2023, with companies such as Statkraft, Hydro Rein, and Yara actively expanding projects in solar, wind, bioenergy, and ammonia production. Petrobras also entered the low-carbon fuel market through a contract to supply 12,000 tons of Very Low Sulfur B24 bunkers to the Norwegian shipping company Odfjell in 2026, reinforcing low-carbon fuel development. Additionally, Petrobras and Lightsource bp formed a joint venture to enhance renewable energy projects in Brazil, emphasizing solar capacity growth.
Trade between Norway and Brazil totaled $2.1 billion in 2024, mainly in maritime equipment and offshore supplies. The recently signed Mercosur-EFTA trade agreement is expected to further solidify bilateral trade relations by reducing market access barriers. Despite geopolitical issues in Latin America, Norwegian firms report no direct investment concerns in Brazil, continuing to monitor the evolving regional landscape.
This article was curated and published as part of our South American energy market coverage.
