brazil’s oil prospectivity unveiled...single registration single participation rate with reduced...

Brazil’s Oil Prospectivity

Unveiled

Eliane Petersohn

Chief Geologist

Calgary,

Jun, 12st 2018

Country Market Seminar

Outline

4

Latest Auction Results2

Brazil’s Current State and Prospectivity1

Open Acreage3

New Licensing Rounds in Brazil

5 Conclusions

Brazil’s Current State

Area under concession

~ 280,000 km2

335 Blocks

431 fields

Production

(Mar, 2018)

Oil 2.56 million barrels/d

Natural Gas 107 million m3/d

Proven Reserves

(Dez, 2017)

Oil 12.8 billion barrels

Natural Gas 367 billion m3

10th largest oil producer in the

world and the largest in Latin

America

Sedimentary Area: 7.5 million km2

20181998

Crude Oil Export

(Feb, 2018)

0.9 million bbl/d

Oil Export

(2000)

18.68 bbl/d

Production (Mar, 2018)

2.56 million bbl/d

107 million m3/d

Production (Dez, 1998)

970 thousand bbl/d

30 million m3/d

Brazil’s Current State

Brazil’s Prospectivity

Eastern and Equatorial Margin

Potential for oil discoveries from the Upper Cretaceous to

Paleogene turbidite reservoirs

Pre-SaltConventional

OffshoreOnshore

High quality Carbonate

Reservoirs underneath the

salt layer

High well productivitymore than 30,000 bpd in the

beginning of production

Potential for giant and supergiant

discoveries

Mature Basins(Remaining Potential)

New Frontier BasinsSolimoes Basin: Potential for

light oil accumulations

Paleozoic and Proterozoic

basins: gas prone

Onshore New Frontier Basins

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

Gavião

Preto

Gavião Caboclo Gavião Branco Norte

Gavião

Branco

Gavião Vermelho

Gavião Azul

Gavião Real

7 natural gas fields

Four among the onshore Brazil’s top 20 producers

Natural gas production

~6.1 million m3/d (jan/2018)

Area under concession: ~78,800 km2

Parnaiba Basin

Reconcavo, Potiguar,

Sergipe-Alagoas and Espirito Santo

- Advanced exploration stage

- Oil & Gas Infrastructure available

- Excellent opportunity for small and medium-sized

companies

- Recent discoveries

- Remaining Potential

Onshore Mature Basins

Potiguar

Sergipe-Alagoas

Espirito Santo

Reconcavo

Outline

4



Open Acreage3


5 Conclusions

Brazil’s 15th Licensing Round

A variety of operators and

a geographic diversity

The largest signature bonuses

in concession bidding rounds

ever (R$ 8 billion)

22 blocks were acquired

(Total area 16,400.30 km²)

12 winning companies from

11 countries

Brazil’s 4th Pre-Salt Auction

The 4th Pre-salt Auction raised

R$ 3.15 billion in signing

bonuses and R$ 738 million in

planned investments

The results demonstrate that

majors Equinor, ExxonMobil,

Shell, BP, and Chevron are

long-term investors in Brazil

Outline

4



Open Acreage3


5 Conclusions

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.

Companies do not need to wait for the regular bidding rounds.

It gives more flexibility to the industry and it will promote exploration activity

in onshore areas where there are more small and medium size companies.

And, by offering companies the freedom to choose exactly the areas they want to

explore the government has a better chance to bring serious energy investors.

Open Acreage

Open Acreage 1st Wave

884Blocks

Area:

346,035 km²

14Mature

fields

15Sedimentary

basins

722 blocks in 9 onshore basins

162 blocks in 6 offshore basins

Blocks not awarded in the 15th Bidding Round are

included

Open Acreage

Single registration

Single participation rate with reduced value

Complete technical data package will be optional

Reduction of the financial guarantee for the Minimum Exploratory

Program – 30% of the total amount

Reduced signature bonus for mature basins (R$ 50,000)

Local content onshore: Exploration 50% / Production Development 50%

2018

May, 2nd

Registration to Open

Acreage begins

June, 20th

Public Hearing Auction

Beginning of the enrollment.

Companies can submit an interest

statement for any block

Tender Protocol

and Contracts

Publication

July, 19th

Open Acreage 1st Wave Schedule

ANP has 90 days from the submission of each

offer to execute the auction

special commission

publishes the

schedule

Onshore New

Frontier Basins

Solimoes

Amazonas

Parecis

São Francisco

Parana

Tucano

Offshore Areas

Foz do Amazonas, Para-Maranhao

Barreirinhas, Ceara

Potiguar

Pernamubo-Paraiba

Sergipe-Alagoas

Jacuipe, Camamu-Almada

Jequitinhonha, Espirito Santo

Santos and Pelotas

1,054 blocksTotal Area: 441,400 km2

Deadline to disclosure parameters

and rules

December/2018

Open Acreage 2nd Wave

Outline

4



Open Acreage3


5 Conclusions

(Concession)

Auction

September,

28th

(Concession)

Auction

1st

Semester

As from

NovJune, 7th

3rd

Quarter

Bidding rounds schedule

(Concession)

2018 2019

SaturnoTitã

Sudoeste de

Tartaruga Verde

Pau-Brasil

Unrisked oil in place volume (P50)

surpasses

17 billion barrels

This auction will include 4 blocks:

Saturno, Tita, Pau-Brasil and

Sudoeste de Tartaruga Verde

Public session for

submission of bids:

September the 28th, 2018

5th Pre-salt Bidding Round

25 km

Base of Salt

Depth Structural Map


Dione

Saturno

Titã

Dep

th (

m)

-3,0

00

Arbitrary Line

-5,0

00

-7,0

00

-9,0

00

Survey: 0264_BM_SANTOS_FASE_VII_B – Courtesy of CGG

SW NESaturno TitãDione

5 km


5 km

Dep

th (

m)

-3,0

00

-5,0

00

-7,0

00

-9,0

00

Saturno TitãDioneSW NE

Arbitrary Line

Top of Salt (Aptian/Albian)

Base of Salt (Aptian) BasementSea Bottom

Fault

Survey: 0264_BM_SANTOS_FASE_VII_B – Courtesy of CGG

Base of Sag (Aptian)


3 km0

Depth

(m

)

-4,0

00

-5,0

00

-6,0

00

-7,0

00

-3,0

00

Survey 0268_BM_SANTOS_FASE_VII_B – Courtesy of CGG: Arbitrary Line (Fast Track)

Dione Prospect


What´s up for 2019?6th Pre-salt Auction & 16th Bidding Round

16th Bidding Round6th Pre-Salt Licensing Round

Aram

Bumerangue

Cruzeiro do Sul

Sector Round 16

Area under evaluation for Round 16

Sector Round 17


Sector Round 18


Bidding Rounds Schedule

2019

2020

2021

Outline

4



Open Acreage3


5 Conclusions

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

increased its oil production and it has geological potential to be in the Top 5 oil

producers in the world.

In 2018 ANP is starting the open acreage process which will allow companies to have

more flexibility to orchestrate deals with the Brazilian government and access to almost

2,000 blocks (~800,000 km2).

It aims to make the Oil sector more dynamic and to increase exploration and

production activities in the Country.

Beyond these, there will be one more Pre-Salt Auction in this year; new bidding rounds

under concession and production sharing in 2019 and ANP has just released sector’s

schedule for 2020 and 2021.

Conclusions

National Agency of Petroleum, Natural Gas and

Biofuels

ANP

Eliane Petersohn

[email protected]

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