Areas on Offer

ANP 14th Bidding Round

Eliane Petersohn

Chief Geologist

Outline

Final Remarks4

Prospectivity of the Areas on Offer in the

14th Bidding Round3

New Regulatory Framework in Brazil2

Introduction1

Outline

Final Remarks4

Prospectivity of the Areas on Offer in the

14th Bidding Round3

New Regulatory Framework in Brazil2

Introduction1

Current Scenario

Production (May, 2017)

Oil 2.7 million barrels/d

Gas 105 million m3/d

Proven Reserves (Dec, 2016)

Oil 12.7 billion barrels

Gas 378 billion m3

Sedimentary Area: 7.5 million km2

Area under concession

~ 260,000 km2

311 blocks

434 producing fields

Brazil is one of the best opportunities for oil exploration investment in the world, along with the Gulf of

Mexico and the coastal basins of West Africa form the so-called "Golden Triangle"

West Africa

Brazil

Gulf of Mexico

Exploration Perspectives

Interruption of the bidding rounds; Reduction of Petrobras' investments

and drop in oil prices: decrease in exploration activities

91 94108

149

186 182

176

238232

163

9485

39

0

50

100

150

200

250

Exploratory Wells drilled

6

76 7392

104

132 133146 149

173

130

8173

220

40

80

120

160

200

Discovery Notifications

6

Policy and regulatory measures were necessary to restore sector’s dynamics

Current Scenario

Outline

Final Remarks4

Prospectivity of the Areas on Offer in the

14th Bidding Round3

New Regulatory Framework in Brazil2

Introduction1

Local Content is not a criteria for

the bidding rounds anymore

More flexible rules and more

freedom to negotiate with

suppliers

Instead of the previous 70

subitems this has been drastically

reduced and now we have five

local content macro-groups

New pre-salt regulatory

frameworkcompanies other than Petrobras

can now operate blocks in the

largest deep-water deposits.

onshore

Offshore

Source: http://www.brazilgovnews.gov.br

New Local Content Policy for the 14th

Bidding Round and for the 2nd and 3rd

Pre-Salt Bidding Rounds

New Regulatory

Framework

Improvements in the tender protocol and concession

agreement:

Single exploration phase (5 to 7 years), excluding the obligation to

drill an exploratory well;

Local Content is not a criteria for the bidding rounds;

Offering Criteria: signature bonus (80%) and Minimum Exploration

Program (20%);

Royalties adjustment in mature and frontier basins;

Reduction of the minimum net equity required of non-operators

(from 50% to 25% of the amount required for operators);

Incentives for investments funds to participate.

New Regulatory

Framework

Bidding Rounds

Schedule

Bidding Round Focus

2017

14th Bidding Round East Margin

2nd Production Sharing Bidding RoundUnitizable Areas (Carcara, Gato do Mato, Sapinhoa

and Tartaruga Verde)

3rd Production Sharing Bidding Round Peroba, Pau Brasil and Alto de Cabo Frio

4th Marginal Fields Bidding RoundMarginal oil and gas accumulations in mature

basins

2018

15th Bidding Round Equatorial Margin

4th Production Sharing Bidding RoundSaturno, Tres Marias, Uraipuru and blocks in

Campos Basin

5th Marginal Fields Bidding RoundMarginal oil and gas accumulations in mature

basins

2019

16th Bidding Round East Margin

5th Production Sharing Bidding RoundAram, SE de Lula, Sul e SW de Jupiter,

Bumerangue

6th Marginal Fields Bidding RoundMarginal oil and gas accumulations in mature

basins

Outline

Final Remarks4

Prospectivity of the Areas on Offer in the

14th Bidding Round3

New Regulatory Framework in Brazil2

Introduction1

287 Blocks

Total Area: 122,615 km2

Offshore Areas

Sergipe-Alagoas

Espirito Santo

Campos

Santos

Pelotas

Onshore New Frontier

BasinsParnaiba

Parana

Onshore Mature Basins

(Potiguar, Sergipe-Alagoas, Espirito

Santo and Reconcavo)

Block on offer R14

14th Bidding Round

Efficient petroleum system

(Albian-Turonian marine source

rock and Upper Cretaceous

turbidite reservoirs)

In the last few years light oil and

condensate discoveries were

made in deep and ultra-deep

water

Potential for similar discoveries

11 Blocks on Offer

Total Area ~7,700 km²

Area per block ~760 km²

Ultra-deep water

(Water table > 2,000 m)

Block on offer R14

Ongoing discovery appraisal plan

Extension well with hydrocarbon show

Poco Verde

BarraCumbe

Farfan

Moita Bonita

Muriu

SSEAL-AUP2

SSEAL-AP1

SSEAL-AP2

Sergipe-Alagoas

Traditional producer in onshore

and offshore areas

Recent discoveries in deep and

ultra-deep water in Upper

Cretaceous and Neogene

turbidite reservoirs (Cluster of

Dogs and Cluster of Candies)

Potential for similar discoveries,

as well as Marlim Complex

(Campos Basin)

7 Blocks on Offer

Total Area ~5,000 km²

Area per block ~720 km²

Ultra-deep water

(Water table > 2,000 m)

Block on offer R14

Ongoing discovery appraisal plan

Extension well with hydrocarbon show

Espírito Santo

Block on offer R14

The main oil and natural gas

producer in Brazil

Traditional producer from

post-salt turbidite and

carbonate reservoirs

Recent discoveries in the pre-

salt section (microbialites

mainly)

Potential for oil accumulations

in the Pre-Salt play

10 Blocks on Offer

Total Area ~5,500 km²

Area per block ~700 km²

Ultra-deep water

(water table> 2,000 m)

Campos Basin

Block on offer R14

Most important oil producer in

Pre-Salt reservoirs

Area on offer has potential for

oil discoveries in post-salt

plays in Upper Cretaceous to

Paleogene turbidite reservoirs

Leads analogous to the Bauna

field

76 Exploration Blocks

Total Area ~20,000 km²

Area per block ~ 173 km²

(shallow water blocks)

Area per block ~ 686 km²

(deep water blocks)

(water table > 100 m)Bauna Field

Santos Basin

Block on offer R14

6 Exploration Blocks

Total Area ~15,000 km²

Area per block ~2,600 km²

deep water

(Water table > 400 m)

Huge new frontier Area

Oil and/or gas commercial

discoveries have not been

made yet

Potential for oil discoveries in

the Upper Cretaceous and

Paleogene turbidite reservoirs

Pelotas Basin

Parana Basin

11 Exploration Blocks

Total Area ~31,000 km²

Area per block ~3,000 km²

Parnaiba Basin

12 Exploration Blocks

Total Area ~34,000 km²

Area per block ~3,000 km²

Onshore New

Frontiers Basins

Block on offer R14

Onshore Potiguar

Onshore Sergipe-Alagoas

Reconcavo

Onshore Espirito Santo

Onshore Potiguar

62 blocks

~1,700 km2

Onshore Sergipe-Alagoas

46 blocks

~1,300 km2

Reconcavo

27 blocks

~640 km2

Onshore Espirito Santo

19 blocks

~460 km2

Onshore Mature Basins

Unrisked in place

Volume

Sergipe-Alagoas Basin~15 billion barrels of oil

Santos Basin~22 billion barrels of oil

Campos Basin

~16 billion barrels of oil

Espirito Santo Basin~7 billion barrels of oil

Pelotas Basin~15 billion barrels of oil

Unrisked in place

oil volume

Outline

Final Remarks4

Prospectivity of the Areas on Offer in the

14th Bidding Round3

New Regulatory Framework in Brazil2

Introduction1

Final Remarks

Brazil is one of the best opportunities for petroleum exploration in the

world;

The Brazilian Government has been making many moves towards

improving the energy policy in order to attract investments and restore

exploration activities in Brazil;

Improvements include: new local content policy, new regulation for the

pre-salt areas, bidding rounds schedule, Royalties adjustment and

simpler contracts;

All areas on offer in the 14th Bidding Round have potential for new oil

and gas discoveries;

The leads mapped by ANP are world-class and the estimated unrisked

in place volumes surpasses 50 billion barrels of oil.

Brazilian National Agency of Petroleum Natural Gas and

Biofuels – ANP

www.anp.gov.br

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

12º ao 22º andar

Tel: +55 (21) 2112-8100

seminariostecnicos_sdb@anp.gov.br