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PRIO starts operating as a gas trading company
Operation starts with production of around 300,000 m³/day and is awaiting licenses to develop Wahoo to reach figures above 1 million m³/day
Rio de Janeiro, January 2025 – PRIO, the country’s largest independent oil and gas company, announced today (2nd) that it has officially started trading gas directly to the market, with production of around 300,000 m³/day. The company expects a significant increase in natural gas production with the start of production in the Wahoo field, in Espírito Santo, reaching over 1 million m³/day. The move follows the company’s verticalization strategy of being at the forefront of all the stages involving trading, from production to delivery to end customers.
The operation will use the Campos Basin Integrated Flow System (SIE‑BC) and will be transformed into different products at the Cabiúnas Natural Gas Processing Unit (UTGCAB), both infrastructures operated by Petrobras. Finally, it will be negotiated with different companies. Once sold, the product is transported through two transportation networks that originate in Cabiúnas, Macaé, TAG and NTS.
The company’s strategy aims to ensure continuous flow without affecting oil production. According to Gustavo Hooper, Head of Trading and Shipping at PRIO, the area has been talking to several agents such as industries, distributors and gas-fired thermal power plants to build a portfolio that guarantees flow security with the highest return for the company.
“As well as trading our own gas, we are ready to trade that of other companies and open to working with all companies in the industry. For us, this is an opportunity to open up to a promising market by having access to the network that brings Natural Gas to many regions of Brazil,” says Hooper. Creating the trading company to access the free market for natural gas and its derivatives was an important strategic decision for PRIO. It combines the moment when production is growing significantly and the market is booming.”
Wahoo boosts gas production
“Access to the infrastructure to serve end clients will occur at the beginning of 2025 and the construction of the trading portfolio will serve as a preparation for the entry of the most significant volume coming from Wahoo,” Gustavo points out.
The Wahoo project will have a 35-kilometer subsea tieback, the largest in Latin America, and is expected to produce up to 40,000 barrels of oil and over 1 million cubic meters of gas per day, generating more than R$ 3 billion in royalties for the state and the federal government. The company is waiting to receive the environmental license from IBAMA to start drilling the wells. Even before the field starts operating, the project has already invested over R$ 1 billion in the local supply chain. Overall, PRIO is investing approximately R$ 4.5 billion, around 80% of which is in contracting and developing supplier companies.