increasing recovery factor in brazil mature offshore fieldscurrent rf final rf . mature oilfields...

Increasing Recovery Factor in

Brazil – Mature Offshore Fields

Marcelo Castilho Superintendent of Development and Production

Rio de Janeiro

September 25th, 2018

Rio Oil and Gas 2018

Onshore Conventional

Offshore

Brazil is continent-sized with three different E&P environments

Onshore

Mature Basins and New Frontier

Basins (mostly gas prone). Potential

for unconventional to be unleashed.

One of the World´s hottest oil play,

home to the largest offshore oil discoveries in the

last decade.

Pre-Salt Conventional

Offshore All the East Margin besides the pre-salt

region and Equatorial Margin, including new

frontier areas and a significant number of large mature fields.

Pre-Salt Polygon

Production

3.3 Million

Pre-Salt

54% Conventional

Offshore 39%

Onshor

e 7%

Oil

2.57 Million bpd

Gas

116 Million m³/d

boe/d

July, 2018

April, 2018

0

500

1000

1500

2000

2500

3000

3500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

THO

USA

ND

BA

RR

ELS

OF

OIL

EQ

UIV

ALE

NT

PER

DA

Y

Average Production

Brazil Onshore Conventional Offshore Pre-Salt

3.296

1.777

1.274

244

Production Scenario: need to attract investments

30%

(2012/2017)

100 120 140 160 180 200 220 240

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

Tho

usa

nd

bp

d

Onshore Oil Production

160%

(2014/2017)

Pre-Salt Oil Production

(2012/2017)

31%

1.000

1.200

1.400

1.600

1.800

Tho

usa

nd

bp

d

Campos Basin Oil Post-salt Production

SEAL (2014/2017)

0

5

10

15

20

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

Tho

usa

nd

bp

d

SEAL RNCE

61%

Northeast Basins Offshore Production

Production is declining in all regions, except for the pre-salt play

0

500

1.000

1.500

01

/20

08

12

/20

08

11

/20

09

10

/20

10

09

/20

11

08

/20

12

07

/20

13

06

/20

14

05

/20

15

04

/20

16

03

/20

17

Tho

usa

nd

bp

d

0% 10% 20% 30% 40%

SEAL

Espírito Santo

Camamu

Campos

Santos

Potiguar/Ceará

Offshore Recovery Factor per basin

970 Million boe

New Reserves

1% addition in

Conventional

Offshore recovery

factor:

Current RF Final RF

Mature Oilfields

Goal:

promote

revitalization

projects and

increase life extension

Petrobras Divestment

Plan

Partnerships and

Technology Support

CNPE Resolution

2/2016

CNPE Resolution 17/2017

Bidding Rounds /

Open Acreage

Production Phase

Extension

New Resolutions

including Royalties

Industry

+

Government

+

ANP

Main adopted measures New E&P Policies

CNPE Resolution 17/2017

Royalties reduction, up to 5% (five

percent), on incremental production

resulted by new investment plan to

be implemented, in order to

promote life extension and

maximize field’s recovery factor.

Incremental Production

Main adopted measures New E&P Policies

New Resolution: Royalties Reduction on

Incremental Production in Mature Fields.

Promote Field Life

Extension

Maximize Recovery

Factor

Increase project Profitability

More Jobs and Income

Increase Mature Fields attractiveness

10% Royalties

7,5 or 5% Royalties

Historical Complementary

Project

Main adopted measures New E&P Policies

New Resolution: Royalties Reduction on

Incremental Production in Mature Fields.

0 20 40 60 80

Recôncavo Potiguar

Espírito Santo Campos Sergipe Alagoas

Solimões Ceará

Santos Tucano Sul

Camamu

Number of Eligible Fields per Basin

241 Number of Eligible

Fields:

53% of Brazilian Fields

54% of Campos Basin Fields

Mature Fields: 25 years of Production OR Production Cumulative ≥ 70% of

estimated recovery considering 1P reserves

CNPE Resolution 2/2016

Established the guidelines for the

concession contracts extensions

The Concessionaire may apply for

extension upon submission of a

request to ANP, together with a

reviewed Development Plan

Contract Extension

Main adopted measures New E&P Policies

9 extensions approved 4 in 2018

13 currently in analysis

and

GOVERNMENT PROGRAM

REATE Revitalization Program

for Oil and Gas

Exploration and

Production in

Onshore Areas

Main measures in progress

TCP for fields originally with reserves

of marginal economics

(public consultation)

Reserve

Based

Lending

National Agency of Petroleum, Natural Gas and Biofuels ANP

Av. Rio Branco, 65, 21st floor Rio de Janeiro – Brazil

Phone: +55 (21) 2112-8100

www.anp.gov.br

Thank You