-
LatAm Oil & Gas - Relative Credit Analysis; 2023 Sector Credit Outlook: Neutral
Average before tax, full-cycle cost for Latin American oil producers is expected to remain unchanged. However, cost trends for exploration and production (E&P) are expected to vary by country, according to a new peer review of LatAm oil and gas companies by Fitch Ratings. Fitch expects Brazilian firms to scale up, materialize synergies and realize economies of scale, while Colombian E&Ps face increasing marginal costs in the face of decreasing reserves. Brazilian E&Ps are expected to drive 2023 growth, as Petroleo Brasileiro S.A.’s (BB/Stable) recent divestitures of non-strategic assets created an opportunity ... (full story)