brazilian o&g sector current scenario and perspectives: the 13th bidding round

Magda Chambriard

Director-General

BRATEX/OTC – May 6th

Brazilian O&G sector

Current scenario and perspectives:

The 13th Bidding Round

Brazilian O&G Sector Overview

Local Content and R,D&I


Final Remarks

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Outline

Coexistence of

Contractual Systems

~ 2% of sedimentary areas:

Production Sharing

Onerous Assignment of

Rights (OAR)

OAR Surplus

Remaining areas:

Concession Regime

Sedimentary area: 7.5 million km2

Exploration blocks area

under concession

~ 300,000 km2

429 oil and/or natural gas

fields

Current Scenario

Proven Reserves

Oil – 16.2 billion barrels

Gas – 471 billion m3

Near Future: x2

Production (feb/2015)

Oil and NGL – 2.53 million barrels/day

Gas – 95.4 million m3/day

Near Future x2 *

* Considering only discoveries already made, mainly in

the pre-salt area.

Oil Natural Gas

Balance Imports/Exports (Jan-mar/2015)

Oil ≈399 thousand barrels/day

Gas ≈ 47,6 million m3/day

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45

Proven Reserves (Bboe)

Onshore and Offshore Production (Post and Pre-Salt)

Oil Production: (2008–2015)

Despite the importance of the pre-salt discoveries, most part of the

Brazilian production comes from post-salt areas.

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Mill

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Total_Oil Offshore_Pre-Salt Offshore_Post-Salt Onshore

Energy Security is ensured for a long period, but

O&G sector role goes far beyond it...

Local Content

R,D&I

Strategic Role of

O&G Sector




Final Remarks

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Outline

Local Content

Commitments

Average Local Content offers (%)

Local Content is a bid parameter in ANP biddings for Concession

regime and a contractual commitment in the Onerous Assignment and

Production Sharing regime..

Local Content

Subsea Equipments &

Naval Industry

Manifold P-58

Subsea Tree – Pre-Salt

BrasFels Shipyard– RJ (P-56)

Atlântico Sul Shipyard– PE (P-62)

Atlântico Sul Brasa

WORLD CLASS PRODUCTS

1st phase 2nd phase 3rd phase

Local Content

Overcoming challenges

R,D&I Contract Clause a) Establishes the obligation to the concessionaires to undertake

expenditures classified as R,D&I in relevant areas and themes for

the oil, gas and biofuels industry, in an amount equivalent to at least

1% of the Gross Annual value of Oil and gas production of each field

where Special Participation is due.

b) From 11th Bidding Round on: at least 10% of the amount provided to

R,D&I Clause must be employed in the contracting suppliers

conducting R,D&I activities that envisage the increment of the

national content.

Law n. 9,478/1997, Article 8 ‐ ANP Attributions

X ‐ Stimulate the research and the adoption of new technologies for

exploration, production, transportation, refining and processing.

R,D&I Clause: Further

Incentives for National Industry




Final Remarks

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Outline

Tentative Schedule

Milestones

Pre-tender (Concession Regime): June 11th

(www.brasil-rounds.gov.br)

Access to data package: June 12th www.brasilrounds-data.anp.gov.br/ebid

Submission of registration documents and payment of the

participation fee: from June 12th to August 18th

Submission of Bids: October 7th

Important Warning: ANP Resolution 18/2015 establishes ranking of

proposals (Bids) prior to the qualification of the companies.

Areas on Offer

269

Exploration Blocks

22 Sectors

10 Sedimentary Basins Onshore Amazonas

Parnaíba

Potiguar

Recôncavo

Offshore Sergipe-Alagoas

Jacuípe

Camamu-Almada

Espírito Santo

Campos

Pelotas

Total Area:125,126 km2

BASIN STATE AREA

Amazonas AM 19,778.18

Parnaiba MA, TO 61,245.09

Potiguar (onshore) RN 2,161.21

Reconcavo BA 2,329.85

Sergipe-Alagoas (offshore) SE, AL, BA 7,403.89

Jacuipe BA 2,785.37

Camamu-Almada BA 5,359.30

Espírito Santo (offfshore) ES 5,027.43

Campos RJ 350.49

Pelotas RS 18,685.37

TOTAL 125,126 km2

Areas on Offer

Onshore

New frontiers

Amazonas Basin (under environmental bodies evaluation)

07 blocks

Area:

19,778.44 km2

Blocos Exploratórios - Rodadas

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Blocos exploratórios arrematados R12

Cessão Onerosa


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Oportunidades Exploratórias

Blocos Exploratórios Propostos - R13

Setores Propostos

Polígono Pré-Sal

Campos em produção/Desenv.

Cessão Onerosa

Proposed Blocks – R 13

Proposed Sectors

Exploration blocks – Bid Rounds

Amazonas Basin

Natural Gas

Oil

Oil and Natural Gas

Mauá thermoelectric

Mauá thermoelectric

REMAN

Manaus Refinary - REMAN

Source:Petrobras

Amazonas Basin

Azulão Field

VGIP 6.68 Bm3

Area: 21 km²

Reservoir: Carboniferous Sandstones

(Nova Olinda Formation)

Natural Gas and condensate

Depth: - 1,560 m

Japiim Field

VGIP 661 Million m3

Area: 12 km²

Reservoir: Carboniferous Sandstones

(Nova Olinda Formation)

Natural Gas

Depth: - 1,470 m

22 blocks

Area:

61,253.45 km2


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Cessão Onerosa


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa

Proposed Blocks – R13

Proposed Sectors


Parnaíba Basin

Parnaíba Basin

Gavião Real Field Production

Natural Gas: 4.8 million m³/day

Oil: 12 bbl/day

Parnaíba Complex

Installed Capacity: 1,425 MW

http://www.eneva.com.br

Parnaíba Basin

Parnaíba Basin

Ongoing

evaluation plans

Onshore

Mature basins


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Cessão Onerosa


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa

Proposed Blocks – R13

Proposed Sectors

71 blocks

Area:

2,161.21 km2


85 Production Fields

Oil Production: 58,4 Mbbl/day

Gas Production: 1,3 Mm3/day

Potiguar Basin

85 blocks

Area:

2,323.15 km2

78 Production Fields

Oil Production: 41 Mbbl/day

Gas Production: 2,7 Mm3/day


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


Proposed Sectors

Production/Development Fields

Recôncavo Basin

Offshore Basins

The Eastern Margin

Sergipe-Alagoas

Pelotas

Santos

Campos

Espírito Santo

Pernambuco-Paraíba

Camamu-Almada

Jequitinhonha

Cumuruxatiba

Mucuri

Jacuípe

Area: ~ 1.5 million km2

High Potential and New Frontier basins;

Prolific Pre-Salt Province

Margin basins formed during the breakup of Western Gondwana and opening of the South Atlantic;

Extensional stresses dominated

Source: http://www.phoenix.org.br

The Eastern Margin

The Eastern Margin

Sergipe-Alagoas Basin

Shallow water oil and gas fields

and recent discoveries in deep waters.

Camamu-Almada Basin Shallow water oil and gas fields

Santos Basin Post and Pre-Salt oil and gas fields

Campos Basin

It produces 1.76 million barrels of oil and

30 million m3 of gas per day from 48 oil

fields. It represents about 76% of oil

and about 32% of gas production

Espírito Santo Basin

Shallow and deep water oil and gas fields

Natural Gas

Oil

Oil and Natural Gas

10 blocks

Area:

7,403.89 km2


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


Proposed Sectors




Continuous series of large

ultra light oil discoveries

in deep and ultradeep

waters by Petrobras in the

last two years.


Ongoing evaluation plans in deep water

4 blocks

Area:

2,785.37 km2


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


Proposed Sectors



Jacuípe Basin


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa

9 blocks

Area:

5,359.30 km2


Proposed Sectors



Camamu-Almada Basin


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


Proposed Sectors



07 blocks

Area:

5,033.67 km2


Analogue Plays to the


http://booksite.elsevier.com/9780444528186/htm/reschar_chapter_10/figure_10_32.htm

Analogue:

Girassol Field

Angola

Discovery: 1996

Water depth: 1.250-1400m

Oligocene

Reservoir depth: 2.250-2700 m

VOIP: 1,5 B bbl

API: 32º (leve)

High resolution 3D seismic

3 blocks

Area:

350.49 km2


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa


Proposed Sectors



Campos Basin


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Cessão Onerosa


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Setores Propostos

Polígono Pré-Sal


Cessão Onerosa

51 blocks

Area:

18,685.37 km2



Proposed Sectors

Pelotas Basin

Analogues to the

Pelotas Basin

African Continental Margin:

Namibe Basin, Walvis,

Lüderitz and Orange

Mello et al. 2012 Source: http://www.rondauruguay.gub.uy/

LinkClick.aspx?fileticket=ZtWER74xaqw%3d&tabid=411&mid=899

Punta Del Este Basin

Uruguay

http://www.rondauruguay.gub.uy/

Pre-Salt

Future Perspectives

Lula

Oil: 267,3 M bbl/d

Gas: 11,9 MM m3/d

Sapinhoá

Oil: 142 M bbl/d

Gas: 4,9 MM m3/d

Marlim Leste

Oil: 45.5 M bbl/d

Gas: 974 M m3/d

Barracuda/Caratinga

Oil: 24.5 M bbl/d

Gas: 378 M m3/d

Pampo/Trilha/

Linguado/Badejo

Oil: 555 bbl/d

Gas: 22 M m3/d

LIBRA

Total: 47 Wells

Jubarte/Baleia

Franca/Baleia Azul

Oil: 176,2 M bbl/d

Gas: 6,1 MM m3/d

Sepia

Oil: 352 bbl/d

Gas: 9 M m3/d

Búzios

Oil: 381 bbl/d

Gas: 11 M m3/d

Oil: 656.8 M bbl/d and Gas: 24.2 MM m³/d

Pre-Salt Production

February, 2015

Saturno

~750 km2

Pau-Brasil

~135 km2 Peroba

~200 km2

Pau Brasil

Pre-Salt Opportunities

396 m




Final Remarks

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Outline

Brazil is a continental country full of opportunities for big, small and medium size companies, being oil companies and suppliers;

The 13th bidding-round is an example of variety of offers;

The future 2nd pre-salt round is also an example;

In Brazil, exploratory opportunities go far beyond the pre-salt.

Final Remarks

National Agency of Petroleum, Natural Gas and Biofuels – ANP

Av. Rio Branco, 65 – Centro – Rio de Janeiro – Brasil

12º to 22º andar

Phone: +55 (21) 2112-8100

www.anp.gov.br

www.brasil-rounds.gov.br

http://www.anp.gov.br/

brazilian o&g sector current scenario and perspectives: the 13th bidding round

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