Solange GuedesExecutive Manager

Petrobras S/A

70% Recovery factor: Petrobras Perspective

Rio Oil & Gas 2008

1 Overview of Petrobras E&P Reserves and Production Forecasting

2 Mature Fields Management Strategy: Continuing IOR Improvement

3

4 Conclusions

September/2006

Technological Challenges

Summary

Overview of Petrobras E&P Reserves and Production Forecasting

Reserves - SPE�Proven reserves of 13.92 billion boe

�Internal Reserve Replacement of 123.6%

Production �2,065 thousand boed (1,792thousand bopd)

�5-year CAGR of 5.6%

Exploratory Area �140.3 thousand km²

Overview of Domestic E&P - 2007

Domestic Proven Reserve Development

Onshore Production Replacement (MM boe)

1.305,61.325,91.325,71.321,21.409,81.400,31.387,71.346,31.333,5

1.402,31.363,71.411,01.344,2

-1.400

-1.100

-800

-500

-200

100

400

700

1.000

1.300

1.600

Proved Reserves Cumulative Production Annual Production

Equ

ival

ent O

il -

Mill

ion

boe

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

78,5[78,5] 164,5

[86] 255,8[91,4] 348,9

[93] 438,7[89,8]

534,4[95,7] 622,0

[87,6] 706,0[84]

811,3[105,3] 914,3

[103]1021,2[106,9] 1110,2

[89] 1196,5[86,3]

Equ

ival

ent O

il -

Mill

ion

boe

Offshore Production Replacement (MM boe)

12614,112427,411906,611701,4

11191,8

9608,2

8282,58301,38186,37377,27174,36676

6187,1

-6.800

-4.800

-2.800

-800

1.200

3.200

5.200

7.200

9.200

11.200

13.200

Proved Reserves Cumulative Production Annual Production

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

[214,7] 214,7[247,2]

461,9[265,4] 727,3

[318] 1045,2[369,1] 1414,3

[417,2] 1831,6[443,6] 2275,2

[501,4] 2776,6[520,3] 3297,0

[499,5] 3796,5[546,6] 4343,1

[613,7] 4956,9[630,1]

16,0% 13,3%

66,2%

4,5%

Shallow water (0-300m)Shallow water (0-300m)OnshoreOnshore Deep water (300-1500m)Deep water (300-1500m) Ultra-deep water (> 1500m)Ultra-deep water (> 1500m)

9% 10%

58%

23%

Current Exploratory Area140.3 thousand km 2

24%

11%

27%

38%

� 65% of the concession areas are located in deep / u ltra-deep waters.

2007 Production

2,065 thousand boed 13.92 billion boe

2007 Proven Reserves (SPE)

Domestic E&P Profile

Mature Fields Management Strategy: Continuing IOR Improvement

Mature Fields - E&P Strategy

Inte

grity

Technology, Process, People

Inte

grat

ion

Cos

t

Domestic Fields

Brown Fields59%

Green Fields41%

Domestic Production 2.065 mil boed

Offshore69%

Onshore31%

Brown Fields Production1.218 mil boed

Reserves13%

Remain in Place68%

Produced19%

Volumes In Place = 17.1 billion boe

Onshore Equivalent Oil in Place

Total RF = 32%

Offshore Equivalent Oil in Place

Reserves20%

Remain in Place72%

Produced8%

Volumes In Place = 97 billion boe

Total RF = 28%

� Improve production levels

� Improve the Recovery Factor

� Costs optimization

� Reduce decline rates

� Lengthening the economic life

Main ObjectivesMain Objectives

Corporate program focused on the improvement of production levels of fields with high degree of exploitation.

RECAGE

First Phase (2004-2008)

� Increase water injection and velocity drainageup to 10% VOIP and final WOR up to 35;

� Improve reservoir management practices;

� Optimize steam injection and water injection projects;

� Remove bottlenecks in production facilities;

� Optimize lift systems;

� Reduce drilling and workover costs – onshore operations (rigless operations)

Main focus : onshore and shallow water mature fields

6075

68777125 7333

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2004 2005 2006 2007

Additional Recoverable Volume: 1258 MM boe

RECAGE: main results

35%31%

20072004

4% Increase on Recovery Factor (average from 206 fields)

13,2% 3,6% 2,9%

Tot

al R

eser

ves

(Bro

wn

Fie

lds)

MM

boe

Time (year)

Onshore Sergipe mature fields - productionhistory and forecasting

0,00

0,02

0,04

0,06

0,08

1963 1973 1983 1993 2003 2013 2023 2033 2043 2053

Oil

rate

(M

Mbb

l/day

)

History Forecast

RECAGE Phase 1

Carmópolis

Siririzinho

Camorim

Dourado

Time (year)

Total

∆∆∆∆RF = 4%

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

1986 1991 1996 2001 2006 2011 2016 2021

BPD

Production History Project

� Increase the water injection up to 7% VOIP per year

� Drill 200 new wells (injectors and producers)

� Selectivity only for injectors

� Commingled completion

� High volume of water produced

Revitalization Project

Canto do Amaro Field

∆∆∆∆RF = 5%

∆∆∆∆RF = 10%

Also, a CCS effort in Brazil

Miscible CO2 Injection - Miranga Field

0

50

100

150

200

250

2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044 2047

0

600.000

1.200.000

1.800.000

2.400.000

3.000.000

Cu

mul

ativ

eA

dditi

onal

Pro

duct

ion

(m3)

Add

ition

alP

rodu

ctio

n(m

3/d)

Pilot Project (april, 2009)

Well Technology: Multifractured Horizontal Wells (HRM F)

Bonito Field: low-permeability carbonate reservoirs

∆∆∆∆RF = 15% - 20%

Oil Pipeline

Production Unit

Gas Pipeline

Produced water Reinjection

N

Sea water Injection

Planned Sea water Injection

Campos Basin: The maturity phase has arrived

Discovery: 1974 – Garoupa Field

First Oil Production:1977 – Enchova Field

Water Depth: 50 - 1500m

Floating Production Systems: 32 (23 SS, 9 FPSO)

Fixed Platforms: 15

Total Stationary Production Units : 46

Producing Fields: 39

13 new wells (11 producers and 2 injectors)

Marlim Projects

2008 2009 2010 2011 2012 2013 2014 2015150

200

250

300

350

400

Tho

usan

d B

PD

Production maintenance Increase Processing Marlim Phase 2 Marlim Phase 3 Marlim Phase 4

Increase water processing in FPSOs P-35 and P-37100 thousand bbl/d in 2010Marlim – Phase 4: preparing the basis to achieve RF aroun d 70% (900 MM bboe additional)

6 new wells – December/07

83100

8167

RF = 55%

51

RF = 52%RF = 50%RF = 47%

RF = 46%

Marlim Field: different phases of production

Marlim Field : technologies to achieve higher RFs

2009 20102011

2012

TLWP

ANM Piggy-back

SBMS* RWI*

SSAO

Well technolgies

4D SeismicVASPS

CAISSON

BCSS

BCS

Campos Basin - Recovery Factor Evolution

Rec

over

yF

acto

r(%

)

Time (years)

Technological Challenges to achieve higher recovery factors

PROPES

Recovery toolbox

� Water injection� HC gas injection� 4D Seismics� Raw sea water injection� WAG� MEOR� Steam� CO2 injection� Polymer injection

� Conventional wells� Horizontal wells� Multilateral wells� SMART wells� ERD wells� HRMF wells � Light Well Intervention

� Topside processing� Sub sea separation � Down hole separation� Sub sea pumping &

compression � Down hole pumping &

compression� Boosting systems

(VASPs, SBMS..)

Real Time Operations Centers

Identificação de Falhas e Área de Sobrepressão.

Interpretação S4D - Casos

Identificação de Capa de Gás

Identificação de Áreas Lavadas

Anisotropia de Permeabilidades

Ajuste de Histórico de Poços

Caracterização de Falhas Selantes

Capa de Gás Identificação de Falhas Área de Sobrepressão

Falha Selante Anisotropia de Permeabilidade

Ajuste Histórico com suporte S4D

305 kgf/cm 2

262 kgf/cm 2

Applications of 4D SeismicApplications of 4D Seismic

13 wells - 9 relocatedMarlim Field

Faults andOverpressure Areas

Gas Caps Sealing FaultsPermeabilityAnisotropy Production

History Matching

4D Seismic

StructureFiltersPumpControls

Mid-water Inlet

Injection Well

Subsea raw water injection (RWI)

Scenario: Albacora Field (2009)Light oilUnconsolidated sandstone

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

out/8

7

out/9

0

out/9

3

out/9

6

out/9

9

out/0

2

out/0

5

out/0

8

out/1

1

out/1

4

out/1

7

out/2

0

out/2

3

out/2

6

out/2

9

out/3

2

out/3

5

out/3

8

out/4

1

out/4

4

out/4

7

out/5

0

out/5

3

bpd

1st Revitalization cycle

2nd Revitalization cycle

47%40%

20072003

RF

INJECTION WELL

SUBSEA OIL-WATERSEPARATION

PRODUCED WATER INJECTION FLOWLINE

OIL & GASFLOWLINE

PRODUCED FLUIDS

PRODUCTION WELL

GAS SEPARATION

OIL & GAS

OIL – WATERSEPARATION

WATER

OIL

GAS

PRODUCTION

Scenario: • Marlim Field (2010)• Heavy oil• Very unconsolidated sandstone

Subsea system oil-water separation

Pilot Project in Marlim Field (jan. 2010)

Boosting SystemsBoosting Systems

VASPS - Vertical Annular Separation & Pumping System

Marimbá Field (P-8)

SBMS subsea multiphase pumping

Marlim Field - to be installed (2009)

BCSS

Offshore Polymer Injection

New scenario:Heavy oil offshore field (~15 o API) Excellent permoporosity quality

Recovery Process: viscosified water (by polymer inje ction)Example: � PapaTerra field (DW: 1200 m - Campos Basin)� High porosity and permeability� 15º API � oil viscosity: 50 to 150 cP� Horizontal wells with OHGP� TLWP and FPSO

Benefits - preliminary analysis :

� Increase Recovery Factor : ∆∆∆∆RF = 7%

� Decrease water production Seminário “OG21-Workshop for Enhanced Oil Recovery”

Polymer Flood Equipment

Picture

Real Time Operation Centers

RECAGE – Phase 2

� Expand the concept of Phase 1 to all fields, including the Deepwater Fields Revitalization

� Investment on key technologies (EOR process, light well intervention, subsea processing and complex well geometries)

� Fenix Project: recovery factors benchmarking x reservoir technical limits identification for all Petrobras fields (onshore and offshore)

Phase 2

Recovery factor of:� 70% on platform, low complex reservoir fields� 60% on subsea, low complexity reservoir fields

Offshore Fields

Recovery factor of:� 70% on light oil and/or low complex reservoirs fields� 35% on extra heavy oil and/or high complex reservoirs fields

Onshore Fields

RECAGE – Phase 2 - Ambition

70% RF is becoming a reality

61onshoreAraças

56offshoreMarlim

56offshoreBicudo

69onshoreBuracica

67onshoreMiranga

64offshoreNamorado

63offshorePiraúna

61onshoreRio Urucu

61onshoreLagoa Parda

Recovery Factor (%)LocationField

Final Remarks

� During at least the next 20 years, oil and gas production from mature fields will supply at least half of the World’s demand for energy.

� Old paradigms for oil and gas production will be eclipsed by newpractices, new drivers and new technologies geared towards increased recovery from mature fields.

� The continued high oil price scenario, coupled with new tools, technologies and processes will make 70% recovery targets for low complexity reservoirs a reality .