Adopting tieback practices alongside a more modern, less bureaucratic regulatory framework could transform the role of independent producers in Brazil beyond onshore, replicating the dynamism seen in the Gulf of Mexico.
According to the president of Brazil's association of independent oil and gas producers (ABPIP), Marcio Felix, independents are looking beyond their traditional onshore operations — mostly concentrated in the country's northeast — and setting their sights on offshore opportunities, including the pre-salt polygon.
Tieback projects, widely used in the Gulf of Mexico, are seen by ABPIP as a game-changer for Brazil's independent sector. This technique connects remote fields or marginal discoveries to existing production units, leveraging idle infrastructure and reducing the need for new FPSOs and processing systems. ABPIP advocates for a streamlined regulatory framework to enable these projects, including flexible fiscal rules, alternative measurement methods, and automatic royalty reductions for incremental production.
ABPIP member companies increased production by 19pc in the first half of 2025 and are expected to close the year with growth near 20pc, outpacing Brazil's overall oil and gas production growth, which averaged 14.3pc year-on-year production growth in November 2025, according to hydrocarbons regulator ANP data. This performance underscores the strategic role of independents in boosting supply in more remote areas. Expanding offshore could amplify these benefits —provided regulatory adjustments make the environment more competitive and less bureaucratic.
Regulatory agenda to unlock potential
To make this vision a reality, ABPIP proposes updates to the current regulatory framework, including:
- Revising the production-sharing regime in the pre-salt, allowing concessions in less economically attractive areas.
- Modernizing the Permanent Offer system, with incentives such as lower royalties and flexible exploration phases.
- Updating SME (small and medium-sized enterprises) classification to reflect current market realities (up to 10,000 boe/day for small and 100,000 boe/day for medium operators).
- Defining mature and marginal fields clearly, coupled with royalty reductions and streamlined requirements.
- Advancing full implementation of the Gas Law, ensuring non-discriminatory access to essential infrastructure.
- Modernizing environmental licensing with defined timelines and risk-based criteria.
