Petrobras Hits Record 3.512 Million BOE per Day as Production and Exports Climb

Petrobras Hits Record 3.512 Million BOE per Day as Production and Exports Climb

Petrobras reached a new quarterly production record in July–September 2026, as Brazil’s largest oil producer increased offshore output and ran its domestic refineries at high utilization. The state-controlled company reported average production of 3.512 million barrels of oil equivalent per day (BOE/d), up 11.7% from the third quarter of 2025 and 5.3% from the previous quarter.

The figures, released on 28 October, also showed record exports of crude oil and oil products and the highest domestic sales volume of refined products since the third quarter of 2021. The results highlight the growing contribution of Brazil’s offshore pre-salt fields to regional fuel supply and international crude markets. "Petrobras’s production and sales report" (https://agencia.petrobras.com.br/w/negocio/produ%C3%A7%C3%A3o-pr%C3%B3pria-de-%C3%B3leo-e-g%C3%A1s-da-petrobras-atinge-novo-recorde-com-crescimento-de-11-7-em-um-ano) provides the company’s operating figures.

New offshore capacity drives production growth

Petrobras attributed the increase primarily to higher operating efficiency, the ramp-up of the P-78 and P-79 floating production, storage and offloading (FPSO) units in the Búzios field, and the Alexandre de Gusmão FPSO reaching peak production at the Mero field. Lower production losses associated with maintenance shutdowns also supported the quarterly result.

FPSOs are offshore vessels that process hydrocarbons produced from subsea wells and store oil before it is transferred to tankers. They are central to Brazil’s deepwater production model, particularly in the pre-salt region beneath the Atlantic seabed.

Petrobras reported that its own pre-salt production reached 2.96 million BOE/d during the quarter, also a record. Total production operated by the company—including output attributable to its partners—reached approximately 5.08 million BOE/d. These figures measure different things: Petrobras’s own production reflects its share of output, while operated production includes volumes from fields it operates on behalf of all partners.

Brazil’s pre-salt resources have become a major source of production growth because large offshore fields can support high-volume operations. Sustaining that growth, however, requires continued investment in platforms, subsea infrastructure, drilling and maintenance.

Domestic crude production reaches a new high

Petrobras’s crude oil production in Brazil rose 12.4% year on year to 2.832 million barrels per day. Reuters reported that the result exceeded the company’s implied production guidance for 2026 and was above a peak previously projected for a later year.

The higher output gives the company a stronger operating base, but quarterly production should not be treated as a guarantee that the same rate will persist. Platform maintenance, reservoir performance, new project schedules and operational interruptions can all affect subsequent results.

The company’s production report is also distinct from its financial earnings release. Petrobras scheduled its third-quarter financial results for 10 November 2026, meaning the operating figures published on 28 October do not, by themselves, establish quarterly net income, free cash flow or the size of any future dividend.

Refineries operate at 99% capacity

Petrobras’s downstream operations also recorded strong activity. Domestic refineries ran at 99% utilization, while average diesel production reached a quarterly record of 769,000 barrels per day. The company said its production strategy emphasized fuels with higher value, including diesel and aviation kerosene.

Domestic sales of oil products totalled 1.854 million barrels per day, up 6.4% from the second quarter and the highest quarterly level since Q3 2021. The company reported that diesel and aviation-fuel sales were important contributors to the sequential increase.

Higher refinery utilization can help increase domestic product availability and reduce dependence on imports. But operating close to full capacity does not remove every supply risk: scheduled maintenance, product specifications, regional distribution constraints and changing demand can still affect the balance between local supply and imports.

Market prices are another factor. Refining and selling more fuel does not necessarily translate into proportionately higher profit, because crude costs, product prices, operating expenses and domestic pricing decisions all influence margins. Petrobras’s separate financial results will provide a clearer picture of the quarter’s earnings.

Exports rise, with China remaining a key buyer

Petrobras reported record combined exports of crude oil and oil products at 1.251 million barrels per day, up 20.7% from a year earlier. Crude exports alone were approximately 987,000 barrels per day, an annual increase of 21.3%, according to Reuters.

China accounted for 40% of Petrobras’s crude-oil export shipments in the quarter, up from 35% in the second quarter. The United States accounted for 12%, while India’s share declined to 8%. The changing mix illustrates how Brazil’s crude trade is connected to demand from major overseas refiners.

The distinction between crude exports and combined exports matters. The 1.251 million-barrel figure includes both crude oil and oil products, so it should not be described as crude-only shipments. Export volumes can also fluctuate because of shipment timing and cargoes still in transit at a reporting period’s end.

Implications for energy markets and Brazil

Rising Brazilian output adds supply from a major producer outside OPEC and may give refiners more options when sourcing crude. Its impact on global prices, however, depends on wider conditions, including demand, inventories, production elsewhere, transport costs and geopolitical disruptions. One company’s quarterly record is not enough to determine the direction of the global oil market.

For Brazil, higher production and export volumes can support industry activity and generate revenue across the energy supply chain. The effect on government income and Petrobras’s cash generation will depend on oil prices, costs, taxes, investment commitments and the company’s financial performance—not production volume alone.

The next indicators to watch are Petrobras’s 10 November financial results, production trends in the coming quarters, the ramp-up of offshore assets and whether refinery utilization and export volumes remain elevated. The Q3 report establishes a clear operational milestone; its longer-term financial significance will become clearer as additional results are released.