The low sulphur content complies with the IMO global regulation of capping sulphur content to a maximum of 0.5% on all ocean-going vessels starting 1 January 2020.
Petrobras is producing 45,000 barrels per day (bpd) of the fuel is being produced at Isaac Sabba refinery in Manaus, Brazil, according to Argus Media.
A first batch of 618 metric tonnes was supplied to a Petrobras-chartered vessel on 21 April. Petrobras, however, has not yet been determined how it will price the low sulphur fuel as it is awaiting more clarity in the market, the report said.
Read more: First Singapore 0.5% low sulphur fuel futures contract traded at $200 spread
Other Petrobras refineries in Brazil are testing the production of 0.5% bunker fuel. The report said that the Brazilian oil firm has no intentions of marketing high sulphur fuel oil to vessels using scrubbers after the IMO Marpol Annex VI regulation kicks in next year.
Petrobras currently offers 0.8% sulphur content bunker fuel at all Brazilian ports, with the exception of Rio de Janeiro where it sells 3.5% sulphur content fuel.
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