Brazilian O&G sector Current scenario and perspectives: The 13 th Bidding Round

(1)

Magda Chambriard

Director-General

BRATEX/OTC – May 6

th

Brazilian O&G sector

Current scenario and perspectives:

(2)

Brazilian O&G Sector Overview

Local Content and R,D&I

The 13

th

Bidding Round

Final Remarks

1

2

3

4

Outline

(3)

Brazilian O&G Sector Overview

Local Content and R,D&I

The 13

th

Bidding Round

Final Remarks

1

2

3

4

Outline

(4)

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 km

2 Exploration blocks area

under concession

~ 300,000 km

2 429 oil and/or natural gas

fields

(5)

Current Scenario

Proven Reserves

Oil – 16.2 billion barrels

Gas – 471 billion m

3 Near Future:

x

2 Production

(feb/2015)

Oil and NGL – 2.53 million barrels/day

Gas – 95.4 million m

3 _/day

Near

Future x

2 *

*

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 m

3 _/day

0

5

10

15

20

25

30

35

40

45

(6)

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.

0,0

0,5

1,0

1,5

2,0

2,5

3,0

Mi

lli

on

B

arr

el

s

pe

r

da

y

(7)

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

(8)

Brazilian O&G Sector Overview

Local Content and R,D&I

The 13

th

Bidding Round

Final Remarks

1

2

3

4

Outline

(9)

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..

(10)

Local Content

Subsea Equipments &

Naval Industry

Manifold P-58

Subsea Tree – Pre-Salt

BrasFels Shipyard– RJ (P-56)

Atlântico Sul Shipyard– PE (P-62)

(11)

Atlântico Sul

Brasa

WORLD CLASS PRODUCTS

1 st

phase

2 nd

phase

3 rd

phase

Local Content

Overcoming challenges

(12)

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

(13)

Brazilian O&G Sector Overview

Local Content and R,D&I

The 13

th

Bidding Round

Final Remarks

1

2

3

4

Outline

(14)

Tentative Schedule

Milestones

Pre-tender

(Concession Regime)

:

June 11

th

(www.brasil-rounds.gov.br)

Access to data package:

June 12

th

www.brasilrounds-data.anp.gov.br/ebid

Submission of registration documents and payment of the

participation fee: from

June 12

th

_{to August 18}

th

Submission of Bids:

October 7

th

Important Warning: ANP Resolution 18/2015 establishes ranking of

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

(15)

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 km

2

(16)

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 km

2

(17)

Onshore

(18)

Amazonas Basin

(under environmental bodies evaluation)

07 blocks

Area:

19,778.44 km

2 Blocos Exploratórios - Rodadas

2 3 4 5 6 7 9 10 11

Blocos exploratórios arrematados R12

Cessão Onerosa

Blocos Exploratórios - Rodadas

2 3 4 5 6 7 9 10 11 12 Oportunidades Exploratórias Blocos Exploratórios Propostos - R13 Setores Propostos Polígono Pré-Sal Campos em produção/Desenv. Cessão Onerosa

Proposed Blocks – R 13

Proposed Sectors

(19)

Amazonas Basin

Natural Gas

Oil

Oil and Natural Gas

Mauá thermoelectric

REMAN

Manaus Refinary - REMAN

(20)

Amazonas Basin

Azulão Field

VGIP 6.68 Bm

3 Area:

21 km²

Reservoir:

Carboniferous Sandstones

(Nova Olinda Formation)

Natural Gas and

condensate

Depth:

- 1,560 m

Japiim Field

VGIP 661 Million m

3 Area:

12 km²

Reservoir:

Carboniferous Sandstones

(Nova Olinda Formation)

Natural Gas

(21)

22 blocks

Area:

61,253.45 km

2 Blocos Exploratórios - Rodadas

2 3 4 5 6 7 9 10 11

Cessão Onerosa

Blocos Exploratórios - Rodadas

Proposed Blocks – R13

Proposed Sectors

Exploration blocks – Bid Rounds

(22)

Parnaíba Basin

Gavião Real Field Production

Natural Gas: 4.8 million m³/day

(23)

Parnaíba Complex

Installed Capacity: 1,425 MW

http://www.eneva.com.br

(24)

Parnaíba Basin

Ongoing

evaluation plans

(25)

Onshore

(26)

Blocos Exploratórios - Rodadas

2 3 4 5 6 7 9 10 11

Cessão Onerosa

Blocos Exploratórios - Rodadas

Proposed Blocks – R13

Proposed Sectors

71 blocks

Area:

2,161.21 km

2 85 Production Fields

Oil Production:

58,4 Mbbl/day

Gas Production:

1,3 Mm

3 _/day

(27)

85 blocks

Area:

2,323.15 km

2 78 Production

Fields

Oil Production:

41 Mbbl/day

Gas Production:

2,7 Mm

3 _/day

Blocos Exploratórios - Rodadas

2 3 4 5 6 7 9 10 11 12 Oportunidades Exploratórias Blocos Exploratórios Propostos - R13 Setores Propostos

Polígono Pré-Sal

Campos em produção/Desenv.

Cessão Onerosa

Blocos Exploratórios - Rodadas

Proposed Blocks – R 13

Proposed Sectors

Production/Development Fields

Recôncavo Basin

(28)

Offshore Basins

The Eastern Margin

(29)

Sergipe-Alagoas

Pelotas

Santos

Campos

Espírito Santo

Pernambuco-Paraíba

Camamu-Almada

Jequitinhonha

Cumuruxatiba

Mucuri

Jacuípe



Area: ~ 1.5 million km

2 

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

(30)

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 m

3

_{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

(31)

10 blocks

Area:

7,403.89 km

2 Blocos Exploratórios - Rodadas

Polígono Pré-Sal

Cessão Onerosa

Blocos Exploratórios - Rodadas

Proposed Blocks – R 13

Proposed Sectors

Production/Development Fields

(32)

 Continuous series of large

ultra light oil discoveries

in deep and ultradeep

waters by Petrobras in the

last two years.

Sergipe-Alagoas Basin

(33)

4 blocks

Area:

2,785.37 km

2 Blocos Exploratórios - Rodadas

Polígono Pré-Sal

Cessão Onerosa

Blocos Exploratórios - Rodadas

Proposed Blocks – R 13

Proposed Sectors

Production/Development Fields

(34)

Blocos Exploratórios - Rodadas

Polígono Pré-Sal

Cessão Onerosa

Blocos Exploratórios - Rodadas

9 blocks

Area:

5,359.30 km

2 Proposed Blocks – R 13

Proposed Sectors

Production/Development Fields

Exploration blocks – Bid Rounds

(35)

Blocos Exploratórios - Rodadas

Polígono Pré-Sal

Cessão Onerosa

Blocos Exploratórios - Rodadas

Proposed Blocks – R 13

Proposed Sectors

Production/Development Fields

07 blocks

Area:

5,033.67 km

2

(36)

Analogue Plays to the

Espírito Santo Basin

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)

(37)

3 blocks

Area:

350.49 km

2 Blocos Exploratórios - Rodadas

Polígono Pré-Sal

Cessão Onerosa

Blocos Exploratórios - Rodadas

Proposed Blocks – R 13

Proposed Sectors

Production/Development Fields

(38)

Blocos Exploratórios - Rodadas

2 3 4 5 6 7 9 10 11

Cessão Onerosa

Blocos Exploratórios - Rodadas

51 blocks

Area:

18,685.37 km

2 Proposed Blocks – R 13

Proposed Sectors

(39)

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

(40)

Pre-Salt

(41)

Lula

Oil: 267,3 M bbl/d

Gas: 11,9 MM m

3

_/d

Sapinhoá

Oil: 142 M bbl/d

Gas: 4,9 MM m

3

_/d

Marlim Leste

Oil: 45.5 M bbl/d

Gas: 974 M m

3

_/d

Barracuda/Caratinga

Oil: 24.5 M bbl/d

Gas: 378 M m

3

_/d

Pampo/Trilha/

Linguado/Badejo

Oil: 555 bbl/d

Gas: 22 M m

3

_/d

LIBRA

Total: 47 Wells

Jubarte/Baleia

Franca/Baleia Azul

Oil: 176,2 M bbl/d

Gas: 6,1 MM m

3

_/d

Sepia

Oil: 352 bbl/d

Gas: 9 M m

3

_/d

Búzios

Oil: 381 bbl/d

Gas: 11 M m

3

_/d

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

Pre-Salt Production

(42)

Saturno

~750 km

2 Pau-Brasil

~135 km

2 Peroba

~200 km

2 Pau Brasil

Pre-Salt Opportunities

396 m

(43)

Brazilian O&G Sector Overview

Local Content and R,D&I

The 13

th

Bidding Round

Final Remarks

1

2

3

4

Outline

(44)

 Brazil is a continental country full of opportunities for big,

small and medium size companies, being oil companies and

suppliers;

 The 13

th

_{bidding-round is an example of variety of offers;}

 The future 2

nd

_{pre-salt round is also an example;}

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

(45)

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