Alvopetro Expands Bahiagás Gas Deal by 25% to 500,000 m3/d, Pricing at 10.5% Brent
Alvopetro expanded its Bahiagás deal by 25%, raising firm gas sales to 500,000 m3/d plus 100,000 m3/d incremental volumes priced at 10.5% of average Brent. 2026 Brazilian sales are about 2,900 boepd (20% growth) following record Q1 output of 3,124 boepd and the company will drill the 183-D1 Caruaçu well after issues at 183-1.
1. Expanded Bahiagás Gas Sales Deal
The company secured additional firm natural gas sales for 2026–2027, revising the long-term Bahiagás agreement to increase contracted volumes by 25% to 500,000 m3/d and add 100,000 m3/d of incremental supply. Incremental volumes will be priced at 10.5% of average Brent prices per preceding quarter, and the base gas price was adjusted to 1.85 BRL/m3 for February–April 2026.
2. Production Growth and 2026 Outlook
Alvopetro reported record first-quarter production averaging 3,124 boepd, up 24% year-over-year, with March output of 3,209 boepd driven by 17 MMcf/d of gas and condensate. At higher contracted volumes, projected 2026 average sales in Brazil are roughly 2,900 boepd (20% increase), with weighted average gas prices forecast to rise from $10.09/Mcf in Q1 to $12.87/Mcf in Q3 based on benchmarks and current exchange rates.
3. Operational Developments in Brazilian Assets
Stimulation work on the lower interval of the 183-1 well yielded low reservoir inflow, prompting a shut-in while remedial options are evaluated. The company is mobilizing a drilling rig to begin development of the 183-D1 Caruaçu well later this month to advance its Brazilian asset base.