Petrobras Posts Record Q1 Output as Refining Surge Cuts LPG Imports
Operational gains in the Santos and Campos basins drive higher yields and reduced reliance on foreign fuel imports.
Brazil's state-controlled oil giant Petrobras has announced record upstream production for the first quarter of 2026, with output reaching 3.23 million barrels of oil equivalent per day. This figure represents a 3.7 per cent increase quarter-on-quarter and a 16.1 per cent rise compared to the same period last year, underscoring the continued operational momentum of the company's core assets.
The surge in volume was primarily driven by the ramp-up of Floating Production, Storage and Offloading units in key pre-salt fields. Growth was led by projects in the prolific Santos and Campos basins, specifically the Búzios and Mero developments, where new wells and recently commissioned platforms boosted overall capacity. Petrobras noted that total operated production reached 4.65 million boe/d, with pre-salt output alone exceeding 4 million boe/d.
Downstream performance also strengthened significantly during the quarter, with total derivatives production rising 6.7 per cent to 1.816 million barrels per day. Refinery utilisation hit 95 per cent, reflecting improved operational reliability and fewer maintenance-related disruptions. These gains allowed the company to increase domestic fuel sales while reducing its reliance on imports, particularly for liquefied petroleum gas, which fell to its lowest levels.
Record production levels were also achieved for low-sulfur diesel, known as S10, reflecting stronger demand and efforts to optimise yields for higher-value products. Diesel and aviation fuel remained key drivers of the refined product volumes, contributing to the overall efficiency of the refining complex.
The results highlight the ongoing importance of Brazil's pre-salt reserves, which remain among the most competitive offshore oil assets globally due to their high productivity and relatively low breakeven costs. Continued investment in FPSOs and subsea infrastructure has enabled the company to steadily scale output from these fields without the need for aggressive expansion into higher-risk exploration zones.
At the same time, Petrobras is gradually integrating lower-carbon initiatives into its portfolio, including partnerships to supply fuels with renewable content. This signals a measured approach to energy transition pressures while the company focuses on maximising returns from its existing asset base.
