Potencializa E&P and Equatorial Margin
On 09/23/2024, the Ministry of Mines and Energy (MME) launched the Potencializa E&P Program, an initiative aimed at stimulating the exploration and development of oil and natural gas production in new frontier areas, mature fields, and marginal economic fields, with a strong focus on sustainability. The program seeks to attract investment, foster regional development, and support the energy transition.
In recent years, Brazil’s E&P sector has faced significant challenges in accelerating exploration activities, particularly in new frontier regions.
The country currently offers a highly favorable environment for oil and natural gas production. Oil output, which stands at 3.5 million barrels per day, is projected to reach 5.3 million barrels per day by 2030, driven mainly by pre-salt discoveries that began in 2006 and are still being developed. This growth is critical to ensuring energy security and increasing national income and job creation—key resources for a fair, inclusive, and balanced energy transition.
However, Brazil also faces the challenge of replenishing its oil reserves, with the risk of future dependence on imports. Exploration is essential to secure reserve replacement and sustain current production levels. This becomes even more relevant as pre-salt fields such as Tupi (Lula) and Búzios reach more mature production stages.
According to estimates from the Energy Research Company (EPE), following a peak projected for 2031, national oil production is likely to decline. Without progress into new exploration frontiers, Brazil could once again become dependent on oil imports by the 2040s, compromising energy security and undermining economic development.
In light of this scenario, the Potencializa E&P Program was created to adopt immediate and robust measures to reactivate and strengthen the country’s oil and gas exploration and production sector. Maintaining production levels beyond 2031 depends directly on decisions being made today. The blocks acquired now will guarantee the oil of the future and, with it, Brazil’s energy sovereignty and sustainable development.
EVEN MORE ATTRACTIVE AUCTIONS
We are working to make new areas available for future cycles, which will allow Brazil to hold even more attractive auctions, expanding the use of the country’s exploration potential. Under the Potencializa E&P Program, 11 Joint Manifestations were signed between 11/2024 and 01/2025, with 519 areas identified as suitable for future cycles. Of these, 274 exploration blocks and five marginal accumulation areas will already be offered in the 6th Cycle of the Permanent Offer, representing a significant portfolio renewal and major news for the market, with a strong focus on onshore.
In the block auction held in 06/2025, 34 blocks were acquired by nine companies, located in the Parecis (onshore), Foz do Amazonas, Santos, and Pelotas (offshore) basins. The signing bonus reached R$ 989.26 million, the highest ever recorded among all PCO cycles. Planned investments amount to R$ 1.46 billion for the initial phase of the contracts—the exploration phase alone.
In the 3rd Cycle of the Permanent Production Sharing Offer, held on 10/22/2025, five blocks were acquired by five companies, all located within the Pre-Salt Polygon: Esmeralda and Ametista, in the Santos Basin, and Citrino, Itaimbezinho, and Jaspe, in the Campos Basin. The signing bonuses for the five blocks totaled R$ 103.7 million. The investments planned solely for the first phase of the contracts (exploration) amount to R$ 451.5 million.
The Permanent Offer has become the main model for allocating oil and natural gas exploration and production areas in Brazil. It currently includes two modalities: the Permanent Concession Offer (PCO), applied as the general rule, and the Permanent Production Sharing Offer (PPS), focused on areas located within the pre-salt polygon or considered strategic.
Unlike traditional bidding rounds, this model allows exploratory blocks and marginal accumulation areas to remain permanently available for bidding in both onshore and offshore basins. This provides greater flexibility for companies, enabling them to analyze technical data and submit bids at the most opportune time, aligned with their business strategies.
Furthermore, the inclusion of mature fields and marginal economic areas expands opportunities for companies with different profiles. Mature fields are areas where oil or gas production is in decline due to partial depletion of reserves. Marginal economic fields are those with smaller oil or gas volumes or higher exploration challenges, but which can become viable with technological or economic incentives.
NEW FRONTIERS
New frontier areas are those that have not yet been adequately explored to fully assess their oil potential. One frontier that has been gaining attention is the offshore Equatorial Margin, which stretches from Rio Grande do Norte to Amapá and is estimated to hold 10 billion barrels of recoverable oil. To develop this production, approximately R$ 280 billion in investments would be required, with the potential to create 350,000 jobs. Government participation is expected to exceed R$ 1 trillion.
Among other new exploration frontiers, the Pelotas Basin stands out, having attracted growing interest from the industry. In 2024, 44 concession contracts for exploration blocks were signed. However, at present, there are no blocks available for bidding in either the Equatorial Margin or the Pelotas Basin under the Permanent Offer. This highlights the need to advance qualification processes for these regions, ensuring their inclusion in future rounds to expand Brazil’s portfolio in strategic areas.
Another important dimension within the Potencializa E&P Program is the exploration of oil resources in unconventional reservoirs. Brazil ranks 10th globally in shale gas resources, with an estimated 6.9 trillion m³ of natural gas.
If proven viable, daily production could surpass 400 million m³, more than doubling Brazil’s current gas production, eliminating natural gas imports, reducing costs, and fostering the growth of new industries inland. This would generate thousands of direct and indirect jobs, as well as increased income for families.
With increased investment, Brazil has the potential to become the world’s fourth-largest oil producer. Currently, the oil and gas sector plays a central role in the national economy, representing 15% of industrial GDP, 48% of domestic energy supply, and generating more than 1.6 million direct and indirect jobs.
The most significant projects within the Investment Acceleration Program (PAC) are also concentrated in this sector, reinforcing its strategic importance for fiscal balance and economic growth.
From a sustainability perspective, the Potencializa E&P Program is advancing by monitoring the regulatory agenda of the National Agency of Petroleum, Natural Gas and Biofuels (ANP) on the energy transition, supported by the completion of studies provided for in CNPE Resolution No. 8/2024, aimed at decarbonizing the oil and gas sector. Technical reports and communication materials are available on the EPE website.
On the regulatory front, the program has also advanced with measures to improve the contractual environment and stimulate production in fields under the production sharing regime. Law No. 15,075/2024 was approved, extending production sharing contracts and authorizing the transfer of local content surpluses between existing oil and gas contracts—a measure that increases contractual flexibility and promotes more efficient fulfillment of commitments to the national industry.
The Potencializa E&P Program fosters regional development and supports small oil and gas producers, whose activities generate tax revenues and strengthen government participation. By linking economic growth with environmental stewardship, the program underscores the sector’s strategic importance for Brazil. Led by the MME, the program is carried out in collaboration with the ANP and EPE.
EQUATORIAL MARGIN
Through targeted public policies, Potencializa E&P seeks to ensure the sustainable and continuous development of Brazil’s oil and natural gas industry. In a globally competitive environment for investments, the country faces the urgent need to replenish its oil and gas reserves, while ensuring development that respects environmental standards.
The Federal Government recognizes that the energy transition must be fair, inclusive, and balanced, and that the oil and gas sector plays a strategic role in this process. As a reliable energy source, oil is essential for guaranteeing the energy security required for national development, while also serving as an important source of resources that can be reinvested in the transition itself. Its responsible use generates jobs, income, and drives regional growth.
Within this context, the Equatorial Margin emerges as a promising new exploratory frontier, with the potential to become the “new pre-salt” and represent a historic opportunity for economic and social transformation in Brazil’s North and Northeast regions.
Following the pre-salt discoveries during the first administration of President Luiz Inácio Lula da Silva, major investments were attracted—especially by Petrobras—boosting national output and placing Brazil among the world’s leading oil producers.
Although the pre-salt was a milestone of success, fields such as Tupi (Lula) and Búzios are already operating at mature stages. Furthermore, uncontracted reserves in this region face high geological risk and limited potential for significant new discoveries.
The Equatorial Margin thus arises as a solution to ensure production continuity, avoiding declines that could compromise both energy security and public revenue starting in the 2030s.
The Equatorial Margin has the potential to reshape Brazil’s economic and energy landscape, significantly expanding its contribution to sustainable growth, energy security, and regional development.
SPECIFIC OBJECTIVES AND GOVERNANCE STRUCTURE
According to Ordinance GM/MME No. 804, which created the Incentive and Revitalization Program for Oil and Gas E&P Activities (Potencializa E&P), the program’s specific objectives include:
Increasing operational efficiency in mature and marginal fields by adopting measures that extend useful life, raise production, and improve recovery factors.
Stimulating the development of marginal offshore accumulations, particularly through tie-back solutions integrated into existing production units.
Harmonizing the supply of areas with the environmental licensing process, promoting synergies that shorten deadlines and improve predictability.
Strengthening coordination between government and industry stakeholders, creating mechanisms to encourage revitalization of E&P activities.
Ensuring compliance with environmental and operational standards, promoting safety and adherence to industry best practices.
Expanding geological knowledge of national sedimentary basins, with emphasis on the use of unconventional resources.
Improving the Permanent Offer system for exploration areas, encouraging broader investor participation.
Fostering the expansion of the national supply chain of goods and services, enhancing competitiveness and job creation.
Adopting measures to mitigate greenhouse gas (GHG) emissions in exploration and production, aligning with global climate goals.
Proposing actions to allocate Social Fund resources toward climate change mitigation and adaptation, reinforcing the commitment to sustainability.
The Executive Committee (CE-PEP) is responsible for implementing and supervising Potencializa E&P, ensuring coordination and alignment with program guidelines. CE-PEP is supported by specialized subcommittees tasked with conducting studies and proposing initiatives linked to the program’s strategic objectives.
Each subcommittee focuses on areas considered critical and fundamental to the success of the program.
Subcommittees and their areas of activity
1. Sustainable Development of E&P Activities
Focused on promoting environmentally responsible practices and integrating solutions to mitigate greenhouse gas (GHG) emissions, ensuring sustainability in operations.
2. Promotion of the Development of Marginal Economic Field
Dedicated to technical and economic solutions that enable the exploration of marginal assets, with emphasis on expanding oil and gas recovery and applying technologies such as tie-backs.
3. Improvements in the System for Offering E&P Areas
Aimed at strengthening and enhancing the Permanent Offer System to make more areas available for auction, ensuring greater attractiveness, predictability, and competitiveness in the sector.
4. Incentives for the Expansion of the Domestic Goods and Services Supply Chain
Focused on designing policies and incentives that promote the domestic industry, maximizing the economic and social benefits generated by the oil and gas sector.
5. Development of Oil and Natural Gas Resources in Unconventional Reservoirs
Dedicated to advancing technical and geological knowledge to enable the efficient and sustainable exploration and production of unconventional resources.
NUMBERS
EQUATORIAL MARGIN
Expected investments – R$ 280 billion
Potential reserves – 10 billion barrels of oil
Potential jobs – 350,000 jobs
Expected revenue – Over R$ 1 trillion
EXPLORATION OF UNCONVENTIONAL RESOURCES
Natural gas – Potential to generate 400 million cubic meters per day, creating thousands of jobs
AUCTION OF EXPLORATION BLOCKS
Concession Regime
Public session of the 5th PCO Cycle held on 06/17/2025
Thirty-four blocks auctioned to nine companies, located in the Parecis (onshore), Foz do Amazonas, Santos, and Pelotas (offshore) basins
Signing bonus collected: R$ 989.26 million – a record for PCO cycles
Planned investments of R$ 1.46 billion for the exploration phase
Production Sharing Regime
Public session of the 3th PPS Cycle held on 10/22/2025
Five blocks located within the Pre-Salt Polygon acquired by five companies
Signing bonuses: R$ 103.7 million
Planned investments of R$ 451.5 million for the exploration phase
NEW AREAS AVAILABLE
Eleven Joint MME – MMA Statements signed between November 2024 and January 2025, identifying 519 areas as suitable for future cycles. Of these, 274 new exploration blocks and five areas with marginal accumulations will be available in the next Permanent Offer cycle.
DATES
09/23/2024 – Signing of Ordinance GM/MME No. 804/2024 during the opening ceremony of the Rio Oil & Gas Conference
11/28/2024 – MME and the Ministry of the Environment and Climate Change (MMA) sign Joint Statement to include 91 blocks in the Permanent Offer (39 areas in the São Francisco Basin, Minas Gerais; 41 blocks and one marginal accumulation field in the Potiguar Basin, Rio Grande do Norte – all under the concession regime – plus 11 blocks in the pre-salt polygon under the production sharing regime)
12/17/2024 – MME and MMA sign Joint Statement to include 393 blocks and five marginal accumulation fields in the Permanent Offer across the Recôncavo, Tucano, Santos, Campos, Parnaíba, and Tacutu basins
12/26/2024 – Publication of Law No. 15,075/2024, authorizing the transfer of local content surpluses between existing oil and natural gas exploration and production contracts, and allowing for the extension of production sharing contracts
01/10/2025 – MME and MMA sign Joint Statement to include two blocks in the Permanent Offer Notice under the Production Sharing Regime
01/14/2025 – MME and MMA sign Joint Statement to include 15 blocks in the Espírito Santo Basin (MC No. 11/2024)
01/16/2025 – MME and MMA sign Joint Statement to include eight blocks in the offshore Ceará Basin (MC No. 10/2024)
01/17/2025 – Publication of Decree No. 12,362/2025, on a program to reduce the amount of royalties in Round Zero contracts as an incentive for investments in the realization of local content in the exploration and production activities of these contracts.
06/17/2025 – Public session of the 5th PCO Cycle, held at the National Agency of Petroleum, Natural Gas and Biofuels (ANP/RJ)
06/18/2025 – Report “E&P Decarbonization Scenarios”, published by the Energy Research Company (EPE), in line with the guidelines established by Resolution No. 8/2024 of the National Energy Policy Council (CNPE)
08/30/2025 – Publication of Navigation Manuals of the Dynamic Local Content Panels on the ANP website.
10/20/2025 – The Brazilian Institute of Environment and Renewable Natural Resources (Ibama) granted an environmental license to Petrobras for drilling an exploratory well in block FZA-M-059, located in deep waters off the coast of Amapá, 500 km from the mouth of the Amazon River and 175 km from the shore, in Brazil’s Equatorial Margin.
10/22/2025 – Public session of the 3th PPS Cycle held at ANP/RJ
Published: November 12, 2025
Photo credits: Petrobras