Brazilian Exploration Scenario and
Opportunities
Marina Abelha
Superintendent of Exploration
Punta Del Este, Maldonado, Uruguay
December 6th, 2019
This institutional presentation is based upon or derived from sourcesbelieved to be reliable for informational purposes only.
Projections and future values are presented, but no representationregarding their accuracy or completeness is made.
Forward-looking statements regarding our intent, belief or currentexpectations may change without prior notice.
Disclaimer
Sumário
Brazillian E&P scenario1
2
3 Closing Remarks
Investments Opportunities
“The most excitement at the moment is from thedeepwater,” Mr Brown* told the Financial Times, saying
projects in Brazil, the Gulf of Mexico and West ofShetland in the North Sea were among the mostattractive.
* Andy Brown, Shell’s head of exploration and production
March 2018 - Exxon Mobil and other oil companiesopened their wallets at an offshore oil auction in Brazilon Thursday in a sign that the industry was steppingback into the deepwater drilling business. It was thethird encouraging Brazilian offshore auction since
September, and a vote of confidence for thecountry’s energy reform program (…)
This fresh investment, notably in offshore pre-salt basins,
follows the introduction of significant regulatorychanges to the oil and gas sector within Brazil.
Main Regulatory Enhancements
14
Bidding Rounds (in 2017/2021)
2016
Petrobras is no
loger the sole
Operator for
Pre-salt
2019
➢Open Acreage
➢Transfer of Rights
Surpluss
➢Discussion of
Decommissioning
Rules
2017➢New Simplified
Contract Rules
➢New Local Content
Rules
2017 & Beyond
➢Bidding Schedule
2018/2019
➢Extension -
Exploration Phase (Rounds 11 and 12)
2018➢Local Content Waver
(previous rounds - up to 13th
Round)
➢Royalties Reduction(incremental production in
mature fields)
➢Collateral Burden
Reduction(100% to 30% in marginal
fields)
➢Reserve Based
Landing (RBL)
Round Acquired Blocks Area (km2) Signing Bonus (US$ billion) Registered CompaniesWinner
Companies
37 (24 onshore and 13 offshore)
25,011.7 1.035 32 17
3 655.74 0.889 10 7
3 6,130.78 0.768 14 6
3 3,521.04 0.849 16 7
22 16,400.3 2.009 17 12
4 2,860.75 1.838 12 8
12 11,762.78 2.235 17 10
33 (30 onshore and 3 offshore)
16,730.43 1.873 47 10
1 4,475.68 1.295 17 2
2017 - 2019 Bidding Rounds Results – Exploration Blocks
Total 72 87,549.20 6.1
Round Acquired Blocks Area (km2) Signing Bonus (US$ billion) Registered CompaniesWinner
Companies
37 (24 onshore and 13 offshore)
25,011.7 1.035 32 17
3 655.74 0.889 10 7
3 6,130.78 0.768 14 6
3 3,521.04 0.849 16 7
22 16,400.3 2.009 17 12
4 2,860.75 1.838 12 8
12 11,762.78 2.235 17 10
33 (30 onshore and 3 offshore)
16,730.43 1.873 47 10
1 4,475.68 1.295 17 2
Total 72 87,549.20 6.1
Area equivalent
to Portugal
2017 - 2019 Bidding Rounds Results – Exploration Blocks
Estimated Impact from Recent Oil Auctions…
2017-2019New Investments
Hundreds of Wells!
Tax Revenues
Million bpd(added peak production)
Oil
13.4 Billion bbl
Gas
370 Billion m³
June, 2019
March, 2018
Proven Reserves
Pre-Salt
56%
Conventional Offshore37%
Onshore
7%
56%39%
5%
Oil Proven Reserves
Pre-Salt
Conventional Offshore
Onshore
53%
29%
18%
Gas Proven Reserves
Pre-Salt
Conventional Offshore
Onshore
Source: ANP’s statistical yearbook
Total Oil
0,0
0,5
1,0
1,5
2,0
2,5
3,0
Mill
ion
so
f B
arre
lso
f O
il/d
ayOil Production
Post-Salt Pre-Salt Onshore
Fonte: ANP’s Monthly Bulletin of Production - September/2019
2,927
1,827
Área : 7,5 milhões de km2
Brazil’s Current State
Area under concession
~ 280,000 km2
279 Blocks
434 fields
9th largest oil producer in the world
and the largest in Latin America
Onshore oil Production (Oct, 2018)
38%
107,415bpd
Foster Conventional Production
0
500
1000
Development Wells Concluded
59
June 2018
70%2015/2017
2012/2018
38%
2012/2018
0
500
1.000
1.500
2.000
2012 2013 2014 2015 2016 2017 2018
Th
ou
sa
nd
bp
d
Post-Salt Campos Basin Oil Production
4.500
6.500
8.500
10.500
12.500
14.500
16.500
2013 2014 2015 2016 2017 2018
Northeast Basins Offshore Oil Production
bpd
62%
SEAL
0
500
1.000
1.500
01/2
012
08/2
012
03/2
013
10/2
013
05/2
014
12/2
014
07/2
015
02/2
016
09/2
016
04/2
017
11/2
017
Pre-Salt Oil Production 729%
2012/2018
Th
ou
sa
nd
bp
d
41%2012/2018
RNCE
2014/2018
65
52
140
81
101
91 94108
149
193
139169
216215
122
89 77
3826
2727
87%2011/2018
Exploratory Wells Concluded
Current O&G Recovery Factor
Campos Basin
14%
Maximize Recovery Factor
Final O&G Recovery Factor
Brazil
21%
Campos BasinFinal O&G Recovery
Factor Average Final O&G
Recovery Factor
World
35%
Source: ANP (December 2017)
23%1% addition in Campos Basin:
985Mboe
New Reserves
1% addition in Onshore:
200Mboe
New Reserves
Sumário
Brazillian E&P scenario1
2
3 Closing Remarks
Investments Opportunities
E&P Environments
The Pre-salt Play
The Pre-salt Polygon is 3x
Larger than Switzerlan
~150 Thousand km2
Depositional Model
differentiated microbial
platforms
deep (>300m) lake
Linear ridges and cone-like
buildups
shallow evaporitic alcaline lake
Low gradiente ramp-like deposition
Source: Wright & Barnett (2017)
The Pre-salt Play
Platforms
Buildup
Transgressive limestone
Micritic limestone (mudstone -
wakestone)
Mud flat dolomite
Argillaceous limestone & marl Siltstone
Sandstone
Conglomerate
Basement
Intraclast-spherulite
(packtone - grainstone)
Wackestone - packstone
with spherulites
Argillaceous limestone & marl
with spherulites
Lime packestone - grainstone
with mollusk shells
Shale (commonly organic-rich)
Shrubby microbial boundstone
Domal to branching microbial
(chert boundstone)
Synrifte
Upper Synrifte
SAG
SAG
SAG
Basement
Source: Edited of Saller et all, 2016. Availible at Technical Seminar 3rd Pre-salt Bidding Round
Lower Synrifte
Depositional Model
The Pre-salt Play
Source: Larry Benson
Source: wikipedia
Large sub-lacustrine spring mounds develop in
perennial lakes – they need the space (depht) in
wich to grow
1-3 km long
Source: Edited from Wright & Barnett (2017)
Pyramid Lake, NevadaDepositional Model
The Pre-salt Play
The Pre-Salt comprises huge accumulations underneath the salt
layers;
Light Oil with excellent quality accumulations and high commercial
values;
1) Great prospectivity, potential for giant and supergiant oil fields;
2) High wells productivity related to high quality carbonate reservoirs
and extensive and thick production zones.
Source: Petrobras
After Formigli, 2007
The Pre-salt Play Prospectivity
Pre-salt Exploration Scenario
Before 2017 Currently
The Pre-salt Play Production
0,2
0,4
0,6
0,8
1,0
1,2
Mill
ion
ba
rre
lso
fo
il/d
ay
1,4
1,8
Sep/2019
The Pre-Salt production
comes from 110 wells:
87 in Santos Basin
23 in Campos Basin
~1.8 million barrels of oil/day
1,6
2,0
Lapa (2 wells)
Oil: 27.70 M bbl/d
Gas: 1.03 MM m3/d
Barracuda/Caratinga
(2 wells)
Oil: 5.0 M bbl/d
Gas: 99.3 M m3/d
Jubarte (17 wells)
Oil: 164.95 M bbl/d
Gas: 5.82 MM m3/d
Baleia Franca
(2 wells)
Marlim Leste
(5 wells)
Oil: 16.61 M bbl/d
Gas: 317 M m3/d
Baleia Azul
(4 wells)
Marlim/Voador
(1 wells)
Lula (52 wells)
Oil: 936,46 M bbl/d
Gas: 38.12 MM m3/d
Sapinhoá (13 wells)
Oil: 248.91 M bbl/d
Gas: 10.80 MM m3/d
~1.8 million barrels of oil/day
Sep/2019
Mero (1 well)
Oil: 12.25 M bbl/d
Gas: 840 M m3/d
The Pre-salt Play Production
2019 2020 20213rd QuarterTo be
definedTo be
defined
Bidding Rounds Schedule
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 will promote exploration activity
especially in onshore areas.
Open Acreage
Open Acreage
567Blocks
2Brown
Fields
15Sedimentary
Basins
Open Acreage Under Study
Technical and Economical
Parameters under study
20Sedimentary
Basins
1,139Blocks
Solimões
Amazonas
FZAM PAMA
Barreirinhas
Potiguar
PEPB
SEAL
Tucano
Recôncavo
Jacuípe
Camamu-Almada
Jequitinhonha
Espírito-Santo
São Francisco
Santos
Pelotas
Paraná
Parecis
17th Bidding Round (2020)
128 Offshore blocks
~64,105 km2
Para-Maranhao, Potiguar,
Campos, Santos and
Pelotas basins
Next Pre-salt Bidding Rounds
7 Blocks up for Offer
3 in the 7th Bid
4 in the 8th Bid
Round 7 Pre-salt
Round 8 Pre-salt
Pre-salt Polygon
Offshore Basin
Sectors Under Examination
2020Para-Maranhão, Potiguar, Santos Campos & Pelotas Basins
2021Ceara, EspiritoSanto & Pelotas
Sumário
Brazillian E&P scenario1
2
3 Closing Remarks
Investments Opportunities
Attract Suitable Players
➢Major Operators
➢Exploration Specialists
➢Mature Field Players
Small and mid -
sized Companies0302➢Supermajors
➢Major Operators01
Pre-Salt Conventional Offshore
Onshore
Supported by Oilfield Service Companies, Suppliers and Financial Institutions !
ANP main objective is to promote a Predictable and Stable Regulatory Framework , that Attract New Investments and Accelerate the Development of the Pre-Salt, Conventional Offshore and Onshore E&P Environment.
Increase E&P Activities❖ Accelerate Pre-Salt Development❖ Improve Mature Fields Production❖ Improve Recovery Factor❖ Enhance Onshore Incentives❖ Expedite Environmental Licensing
Attract the Right Players ❖ Giant Fields❖ New Frontiers❖ Mature Fields❖ Onshore
Create a Secondary Market Attract mid/small-sized
companiesMaximize Production❖ Diversity of Players❖ EOR/IOR initiatives❖ New RD&I focus❖ Financing Opportunities
Final Remarks
Create Value through a
Developed, Diverse and Competitive
Market!
Brazilian National Agency for Oil Gas and Biofuels – ANPExploration Superintendency
Marina [email protected]
Superintendent of Exploration