Brazil’s Petrobras reported lower upstream production in the second quarter of 2020 due to coronavirus outbreaks at some of its platforms. The company on Tuesday said its upstream output stood at 2.802 million boepd during the period, 6.4% higher than a year earlier but 3.7% lower compared to the previous quarter. Crude oil production in the second quarter averaged 2.245 million bpd, increasing by 9.4% year-on-year, but decreasing by 3.2% quarter-on-quarter.
The disease outbreaks forced the state-owned firm to idle some of its shallow-water platforms. Petrobras previously said it would hibernate 62 shallow-water platforms with high lifting costs. The Capixaba, the Cidade de Angra dos Reis, the Cidade de Santos, and the Cidade de Mangaratiba were among Petrobras’ deepwater platforms that experienced COVID-19 outbreaks and production stoppages. However, Petrobras indicated that upstream production improved in certain regions in the quarter. Output at the company’s Buzios oilfield hit a monthly record of 844,000 boepd.
In the downstream sector, Petrobras said demand for its fuels such as diesel and gasoline, rose significantly in the April-June quarter as some countries began to relax their virus containment measures. Petrobras’ largest refinery, the 434,000-bpd Replan, had resumed operation at full capacity after being shut due to weak fuel demand amid the pandemic. Petrobras fuel exports rose 22% during the period, partially compensating for lower domestic sales.
