brazil’s petroleum unleashed: recentarea under concession ~ 295,000 km2 350 blocks 392 fields 97...

Brazil’s Petroleum Unleashed: Recent

Changes and Future PotentialEliane Petersohn

Chief Geologist Rio de Janeiro,

Nov, 14st 2018

Outline

Brazil’s Current State

Open Acreage Process

Upcoming Licensing Rounds

Conclusion

Photo by Zbynek Burival on Unsplash

Area under concession

~ 295,000 km2

350 Blocks

392 fields

97 companies

Production

(May, 2018)

Oil 2.6 million bbl/d

Natural Gas 112 million m3/d

Proven Reserves

(Dec, 2017)

Oil 12.8 billion barrels

Natural Gas 370 billion m3

10th largest oil producer in the world and

the largest in Latin America

Sedimentary Area: 7.5 million km2

Brazil’s Current State

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Total Oil Pre-Salt Post-Salt Onshore

Millio

nb

arr

els

of

oil

/da

yBrazil’s Current State

20171998

Crude Oil Export

1 million bbl/d

Oil Export

(2000)

18.68 bbl/d

Production (Dec, 2017)

2.6 million bbl/d

110 million m3/d

Production (Dez, 1998)

970 thousand bbl/d

30 million m3/d

Brazil’s Current State

Wide variety of plays under

exploration and production

Two main plays producing in Brazil:

Turbidite Sandstones

Pre-salt Carbonates

Potential for much more to be explored in

conventional and unconventional plays

Pre-SaltConventional

OffshoreOnshore

16,547bpd

86 wells 641 wells 6.792 wells

1,654 bpd 17bpd

E&P Environments

High quality Carbonate

Reservoirs underneath the

salt layer

High well productivitymore than 30,000 bpd in the

beginning of production

Potential for giant or supergiant

field discoveries

Eastern and Equatorial Margin

Potential for oil discoveries from the Upper Cretaceous to

Paleogene turbidite reservoirs

Mature Basins(Remaining Potential)

New Frontier BasinsSolimoes Basin: Potential for

light oil accumulations

Paleozoic and Proterozoic

basins: gas prone

Onshore’s Current State

Onshore New Frontier Basins

Area under concession: ~ 170,000 km2

81 Blocks and 23 fields

Oil production: ~16 thousand bbl/d

Natural gas: ~ 17.6 million m3/d

Onshore Mature Basins

Area under concession: ~ 8,500 km2

122 Blocks and 279 fields

Oil Production: ~92 thousand bbl/d

Natural gas: ~ 3.7 million m3/d

Open Acreage Process

Open Acreage Open Acreage

Continuous offer of blocks and mature fields.

Companies can bid on blocks not sold in previous auctions.

Applications can be submitted anytime and not just at designated points.

It it will promote exploration activity in onshore areas where there are more small and medium size companies.

1st Wave

Area346,035 km²

14Mature

Fields

15Sedimentary

Basins

884Blocks

722 blocks in 9 onshore basins

162 blocks in 6 offshore basins

1st Stage

1st Wave

158 blocks are already available for nomination process

1st Stage - 1st Wave Marginal fields

Reconcavo Basin Potiguar Basin Espirito Santo Basin Sergipe-Alagoas Basin

http://rodadas.anp.gov.br/en/open-acreage/marginal-oil-fields

2nd Wave

1,054Blocks

85 blocks in 7 onshore basins

969 blocks in 3 offshore basins

Technical and economic

parameters are under

evaluation

Area 441,400 km²

20Sedimentary

Basins

Open

Acreage

All the blocks in all

the onshore basins

will be included in the

Open Acreage

Geological and Geophysical ANP’s Program

Geological and Geophysical ANP’s Plan

It is a program of systematic data acquisition to

increase the geological knowledge of the Brazilian

sedimentary basins, specifically in onshore New

Frontier basins

The main goal is to gain knowledge about the

petroleum potential, reduce exploratory risk and

attract investors to enhance exploratory activities.

Between 2007 and 2018 ANP has invested around R$ 1.5 billion

➢ 833,000 km of aero surveys

(gravimetric and magnetometric data);

➢ 17,200 samples of soil (onshore

geochemical surveys);

➢ 4,000 piston core samples;

➢ 23,500 km of 2D seismic data;

➢ Processing of 42,000 km of vintage

seismic data (pre-1998);

➢ 742 points of magnetotelluric data

➢ Petroleum systems studies;

➢ 4 stratigraphic wells

ANP has invested R$ 1.5 Billion

2007-2018

http://www.anp.gov.br/exploracao-e-producao-de-oleo-e-gas/estudos-geologicos-e-geofisicos

Potential of the Areas in Open Acreage

Parnaiba

Parana

Sao

Francisco

Parecis

Amazonas

Solimoes

Solimoes

Basin

Producing basin

and potential for

light oil and natural

gas discoveries

Parnaiba

BasinProduction

6.1 million m3/d

Solimoes Basin production (April/18)

Light Oil ~21 thousand bbl/d

Natural Gas ~14.2 million m3/d

Boe: ~110 thousand bbl/d

Other basins

potential for natural

gas discoveries

Solimoes and Parnaiba are the only new frontier producing basins in Brazil

Acre, Amazonas, Tucano Sul, Sao Francisco,

Parana and Parecis are gas prone basins

Onshore New Frontier Basins

Areas under concession in the Parnaiba Basin

Gaviao

Preto

Gaviao Caboclo Gaviao Branco Norte

Gaviao

Branco

Gaviao Vermelho

Gaviao Azul

Gaviao Real

Natural Gas Production:

~7.91 million m3/d (sep/2018)

Area under concession

~76,200 km2

0

1

2

3

4

5

6

7

8

* Updated in September 2018

20 Largest Natural Gas Producer Fields*

Gavioes ClusterN

atu

ral G

as

Pro

du

ctio

n(M

Mm

³/d

)

7.91 million m³/d **

** 7 % of Brazilian Total Natural Gas Producer

Source: Cunha et al., 2012

SW NE SW NE SE NW NE SW

GVR GVA GVB

0 5 10 km

Silurian Supersequency

Basement

Itaim Fm

Pimenteiras Fm

Cabeças Fm

Poti Fm

Piauí Fm

Longá Fm

Pedra de Fogo Fm

Motuca Fm

0

500

1.000

1.500

2.000

2.500

3.000

3.500

Depth (m)

SILLS

Sills

G a v i o e s C l u s t e r – P a r n a i b a B a s i n

Accumulation Model

Tim

e (

ms

)Leads – Parana Basin

Length (km)

Tim

e (

ms

)

Length (km)

Basement

Leads – Parana Basin

Tim

e (

ms

)

Length (km)

Leads – Parana Basin

LeadsBasement

Open Acreage 2nd Wave

Areas on Open Acreage in ParecisBasin

N S

t (m

s)

0319-0037 0319-0030 0319-0031

2-ANP-6-MT

Depth 4,485 m

40 km

Parecis Basin

N S

t (m

s)

0319-0037 0319-0030 0319-0031

Parecis Basin

40 km

Tucano Sul Basin

Promising potential for natural gas

discoveries

Area under concession

~2,750 km2

15 blocks

7 fields

4 natural gas fields currently under

production:

Conceição

Fazenda Matinha

Fazenda Santa Rosa

Querera

~23 mil m3/d

Onshore Mature Basins

Advanced exploration stage

Oil & Gas Infrastructure available

Excellent opportunity for small and

medium-sized companies

Recent discoveries

Remaining Potential

Potiguar

Sergipe-Alagoas

Espirito Santo

Reconcavo

-

50,000

100,000

150,000

200,000

250,000

Onshore Oil Production bbl/d

Need to revitalize activities in

onshore fields, by attracting small

and medium companies expert in

mature fields

OilGas

127Mil bbl/d

21Million m³/d

30%

0

20

40

60

80

100

120

140

2012 2013 2014 2015 2016 2017

Concluded Wells 84%

Onshore Mature Basins

Licensing Rounds

U p c o m i n g

2019-2021

Bidding Round Blocks Awarded Signature Bonuses

(billion R$)

14th Bidding Round 37 3.84

15th Bidding Round 22 8.01

2nd Pre-Salt Auction 3 3.30

3rd Pre-Salt Auction 3 2.85

4th Pre-Salt Auction 3 3.15

5th Pre-Salt Auction 4 6.82

Total 72 27.97

bidding rounds results 2017-2018

Campos and Santos basins exploration scenario evolution

2015 2018

Blocks R14

~13 bilhões bbl

Blocks LP2

~2,5 bilhões bbl

Uirapuru ~7,8 B bbl

Norte de Carcará ~2,2 B bbl

Peroba Block LP3

~5,3 bilhões bbl

Blocks LP4

~12,1 bilhões bbl

Peroba ~5,3 B bbl

Três Marias

~1,9 B bbl

Blocks R15

~9 bilhões bbl

Blocks LP5

~17 bilhões bbl

Pau-Brasil

~3,9 B bbl

Saturno e Titã

~12,2 B bbl

Unrisked in place oil volume estimated in Campos and

Santos Basins

~ 60 B bbl

Sapinhoá ~350 milhões bbl

Dois Irmãos ~2,4 B bbl

Sudoeste de

Tartaruga Verde

~1,3 B bbl

Blocos R15 Campos ~ 6,3 B bbl

Blocos R14 Campos e

~ 13 B bbl

Blocos R15 Santos ~ 2,65 B bbl

US$ 112 B

R$ 300 B

Investimentos

US$ 425 B

R$1,700 B

Tax Revenues

2.5Million bdp

(peak production)

~20New Plataforms

Hundred of wells

Potential Results

*Brent = US$ 70/bbl

Exchange Rate= R$ 4/US$

Potential results for the following bidding rounds:

2019-2021

Bidding Rounds Schedule

16th Bidding

Round

42 blocks

~30,000 km2

Pernambuco-Paraiba

Jacuipe

Camamu-Almada

Campos & Santos Basins

6th Pre-Salt

Licensing Round

5 blocks:

Aram

Bumerangue

Cruzeiro do Sul

Sudoeste de Sagitario

Norte de Brava

-3,0

00

-5,0

00

-7,0

00

-9,0

00

De

pth

(m

)

Survey: R0014_BS_1_SOUTH_PSDM – Courtesy of PGS

Crossline 4802

Prominent Basement High

Four-way Closure

Ampitude Anomalies

Aram Block

Area: 1,500 km2

25 km

6th Pre-salt Bidding Round

-3,0

00

-5,0

00

-7,0

00

-9,0

00

De

pth

(m

)

Survey: R0014_BS_1_SOUTH_PSDM – Courtesy of PGS

Crossline 4802

Top of Salt (Aptian/Albian)

Base of Salt (Aptian)

Basement

Fault

Aram Block Prominent Basement High

Four-way Closure

Ampitude Anomalies

Area: 1,500 km2

25 km

6th Pre-salt Bidding Round

Pre-Salt Bidding

Rounds Schedule

2020

Esmeralda

Agata

Agua Marinha

2021

Tupinamba

Jade

Ametista

TurmalinaTupinamba

Bidding Rounds scheduleconcession contracts

2020Para-Maranhao, Potiguar,

Campos, Santos & Pelotas basins

2021Ceara, Espirito Santo & Pelotas

Basins

Conclusions

Brazil has highly promising oil prospectivity and wide diversity of plays. It has been increasing its

oil production and it has geological potential to be in the Top 5 oil producers and oil suppliers in

the world.

In order to promote exploration activities in onshore basins, ANP is starting the open acreage

process which will allow companies to have more flexibility to orchestrate deals with the Brazilian

government and to access almost 2,000 blocks (~800,000 km2).

Beyond these, there will be new bidding rounds under concession and production sharing

contracts in 2019-2021.

Agência Nacional do Petróleo, Gás Natural e

Biocombustíveis

ANP

Eliane Petersohn

epetersohn@anp.gov.br