Exploration and production activity across Latin America and the Caribbean will continue recovering in 2021 and could even see rapid acceleration if a COVID-19 vaccine becomes readily and widely available, according to a BNamericas oil and gas outlook report. Brazil, by dint of its sheer size, will likely lead the rebound, helped by the low break-even prices of pre-salt production projects and the prospect of two major auctions for drilling rights. However there are also a wealth of opportunities in Colombia, where fracking pilots and new offshore exploration projects are expected to begin in 2021.
Investors will also have an eye on the Caribbean region as ExxonMobil and its partners continue to ramp-up development off the coast of Guyana. New deep water drilling prospects are also appearing in neighboring Suriname and Trinidad & Tobago. Almost nine months after the coronavirus pandemic forced much of Latin America into lockdown and sent energy demand plummeting, operators across the region are restarting suspended projects and upwardly revising capital spending. Although caution remains high, there is reason for operators to believe the worst has passed, and that Latin America and the Caribbean are ripe for new investment.