<article><p class="lead">Brazil's president Jair Bolsonaro has hinted at the possibility of bringing his country into Opec, a move that would add significant volume to the supply pool controlled by the producers' group.</p><p>Brazil has emerged as a significant non-Opec supplier in recent years, thanks to massive pre-salt offshore deposits discovered over a decade ago. The country's crude output is approaching 3mn b/d, and is projected by the government to reach 5.5mn b/d in 2030.</p><p>Bolsonaro told delegates at the Future Investment Initiative Forum in Riyadh today that he would consider Opec membership. "I personally would very much like Brazil to become a member of Opec. Yes, I think the potential is there. We have enough reserves, oil reserves. Actually larger oil reserves than some current Opec member countries."</p><p>His remarks come on the eve of two big offshore licensing rounds that are expected to generate brisk competition from Brazilian state-controlled Petrobras and major international oil companies. The main upstream offer, to be held on 6 November, covers up to 15bn bl of oil equivalent (boe) of excess hydrocarbon reserves in the Santos basin pre-salt cluster known as the Transfer of Rights (TOR).</p><p>In the past, Brazil's mines and energy ministry has sat in on high-level Opec and non-Opec meetings. But it has said that under Brazilian law and contracts, the federal government — the controlling shareholder of Petrobras — cannot interfere with the production of contracted companies. </p><p>Petrobras is Brazil's top oil producer. But growing volumes are now coming from Shell, Norway's Equinor and Sino-Spanish venture Repsol-Sinopec, among others.</p><p>Brazilian oil regulator ANP has established a 2.91mn b/d oil production target for 2019, a 12.7pc increase over average production in 2018. Output is expected to increase to 3.29mn b/d in 2020, 3.43mn b/d in 2021, 3.64mn b/d in 2022, and 3.73mn b/d in 2023.</p></article>
