Anelise Libra Presentation Bratecc Offshore 2014

Libra PSC
Warming up the engines
Anelise Lara
E&P Executive Manager
Disclaimer
Forward-looking statements:
Disclaimer
The presentation may contain forward-looking statements about
future events within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, that are not based on
historical facts and are not assurances of future results. Such
forward-looking statements merely reflect the Company’s current
views and estimates of future economic circumstances, industry
conditions, company performance and financial results. Such
terms as "anticipate", "believe", "expect", "forecast", "intend",
"plan", "project", "seek", "should", along with similar or
analogous expressions, are used to identify such forwardlooking statements. Readers are cautioned that these
statements are only projections and may differ materially from
actual future results or events. Readers are referred to the
documents filed by the Company with the SEC, specifically the
Company’s most recent Annual Report on Form 20-F, which
identify important risk factors that could cause actual results to
differ from those contained in the forward-looking statements,
including, among other things, risks relating to general economic
and business conditions, including crude oil and other
commodity prices, refining margins and prevailing exchange
rates, uncertainties inherent in making estimates of our oil and
gas reserves including recently discovered oil and gas reserves,
international and Brazilian political, economic and social
developments, receipt of governmental approvals and licenses
and our ability to obtain financing.
We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new
information or future events or for any other reason. Figures for
2014 on are estimates or targets.
All forward-looking statements are expressly qualified in their
entirety by this cautionary statement, and you should not place
reliance on any forward-looking statement contained in this
presentation.
Non-sec compliant oil and gas reserves:
cautionary statement for us investors
We present certain data in this presentation, such as oil and gas
resources, that we are not permitted to present in documents
filed with the United States Securities and Exchange
Commission (SEC) under new Subpart 1200 to Regulation S-K
because such terms do not qualify as proved, probable or
possible reserves under Rule 4-10(a) of Regulation S-X.
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Agenda
Overview on Libra
Production sharing contract main characteristics
First view on field exploration and development
Main solutions and opportunities to achieve our targets
3
Libra is located close to Buzios field, in the Pre-salt area in
Santos Basin
PPSA
About Libra...
• Libra field discovered in
2011
• Bid for PSC went out in 2013
– Consortium formed by
Petrobras (40% - operator),
Shell (20%), Total (20%),
CNOOC (10%) and CNPC
(10%)
– R$15B (~$6.5B) signature
bonus
– 41.65% government share
in profit oil
• PPSA: manage the PSC,
representing the interests of
the Brazilian Government
4
Libra has an area of ~1500km2, equivalent to that of
Houston
ES
Equivalent to
Houston's area
MG
RJ
São Paulo
Rio de Janeiro
SP
PR
Campos Basin
7,000 km2
Curitiba
(1.7 million acres)
Santos Basin Pre-Salt
15,000 km2
(3.7 million acres)
SC
100 km
Florianopolis
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Libra structural map
Libra's reservoir has very unique characteristics
Very thick Pre-salt
reservoirs
Good reservoir quality
(porosity / permeability)
Light Oil ~27 API
Low H2S
High GOR (~400 m3/m3)
High CO2 content (~40%)
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Libra's size has attracted a lot of attention
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The Libra partnership offers a vast array of opportunities
+• Very strong oil companies
+• Possibility to share Expertise,
knowledge and funding
+• Collaborative environment
+• Integrated Project Team
+• Openness to new ideas
+
+• Multi-cultural partnership
+• Resources alignment
PPSA
8
Agenda
Overview on Libra
Production sharing contract main characteristics
First view on field exploration and development
Main solutions and opportunities to achieve our targets
9
Specific rules for cost recovery under Libra's PSC
Duration of
the contract
• 35 years to explore the field (EXP + PD + P),
regardless of declaration of commerciality and not
extendable
• 4-year exploration phase can be extended
Cost oil
recovery
• Begins after the declaration of commerciality
• There is no monetary correction of costs, and
they are denominated in Brazilian Reais
• Cost recovery limits: 50% for 1st and 2nd years,
and 30%1 from third year on
Royalties
• Fixed rate of 15% of total production, regardless
of cost oil recovery
Profit oil
• Government share varies with the average well
productivity and Brent
Taxes
• Signature bonus to be amortized through tax
shields
1. Limit can raise to 50% after third year if there are costs not recovered for more than 2 years
Source: Libra PSC
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Agenda
Overview on Libra
Production sharing contract main characteristics
First view on field exploration and development
Main solutions and opportunities to achieve our targets
11
Libra's first approach of full field development considers pre-salt
strategy of phased development and partner´s deepwater expertise
Phase 0
Phase 1
Data acquisition
Operating
production > 1MM bbl /d
2014/2020
2021/2030
• Exploratory and
appraisal wells
• FPSO families adapted
to Libra vs...
• EWTs
• ... systems tailored to
different scenarios
• Pilot system
1 pilot project
First estimate: 11 Definitive Systems
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EWTs: Reduction of uncertainty by understanding dynamic
behavior is crucial to optimize final production systems
Production unity with 50K bbl/d
of oil capacity and 4MM m3/d of
gas compression capacity
1 production and 1
injection well
EWT with gas reinjection for one year to :
• Test different zones in each well (production / injection perforation and completion strategies)
• Evaluate a large drainage area
• Be able to do more interference tests
• Test high production and injection rates for longer periods
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Agenda
Overview on Libra
Production sharing contract main characteristics
First view on field exploration and development
Main solutions and opportunities to achieve our targets
14
Some key solutions and opportunities
Technological
Local Content
15
Some key solutions and opportunities
Technological
Local Content
16
Steep technology development in Oil & Gas in Brazil from
1990's until now
Modeling
CALM
Buoyand
Geochemical
Deepwater
(Catenary
Pendular
Characterization
of
Subsea
Raw
Anchor
Leg
Manifold
Lacustrine,
WaterMoorings)
Injection
Installation
Rift
Rocks
(WDSource
Record)
Carbonate
Rocks
Characterization
First Full
First Offshore
First Torpedo
Buoyancy
Polyester
Ultra Heavy
Piles Installation
Supported
RisersOil
MooringProduction
System
Roncador,
2006 2011
Albacora,
Santos
Marlim,Basin,
1992 2001
Pre-Salt, 2006
Sapinhoá,
20132008
Badejo,
AlbacoraMarlim,
Leste, 1997
2005
Wet
FreeFirst
Standing
VASPS
Deepwater
Completion
Hybrid
Riser
Subsea
(Vertical
Annular
ESP in the
Oil-Water
Separation and
Separation world
Pumping System)
Subsea
Multiphase
Pump
Marlim, 2012
Roncador,
2007
Carapeba,
1994
Marimbá,
2001
Barracuda,
2012
ESP
a Wet
Diverless
Downhole
ESPinabove
Wet
X- High
Deepwater
Completion
Power
mas
Tree ESP and ROV
Permanent
Intervened Treecap
4D
FirstPipe
horizontal
Drill
Riser
Wet
X-mas Tree Seismic
X-mas tree
Production
Jubarte, 2012
Jubarte,Leste,
2002
Albacora
1998 2007
Jubarte,
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Still many more technological solutions are being developed
generating continuous innovation
•
•
•
•
Better seismic imaging
Good reservoir characterization
Suitable geological and flow model
WAG injection modelling and operation
• Multiplex Intelligent completions
• Use of new materials to reduce well costs
• Increase ROP in the reservoir
• Large Diameter Risers
• Adapted subsea technologies for Libra specs
• Subsea processing
•
•
Topside facilities suitable to handle
high GOR and high CO2 content
New Gas processing and separation
solutions
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CENPES
(Petrobras' R&D Center)
• Investments of US$1B/year in R&D
(15-20% dedicated to Pre-Salt)
• 1800 researchers
• 300,000 m2
Technology Park in
Rio de Janeiro
In addition...
• 200 laboratoires in Brazil
• 15 external researchers to each
internal researcher
Tech. centers installed
Other tech. centers to be
installed in Brazil
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Some key soutions and opportunities
Technological
Local Content
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Local content is required in different levels, including items
and sub-items
Examples
Global
LC requirement
Exploration Phase
Production Phase
• EXP: 37%
• DP: 55-59%
Items
Rigs, hull, subsea tree,
drilling equipment
Sub-items
(equipments)
Casing, bits
(%)
Local Content
• Rigs: 29%, 5065%
• Subsea Tree: 70%
• Casing: 73%
• Bit: 5%
Participation of Oil & Gas
industry on Brazil's GDP
15
12
10
Technology Growth of
development national
industry
Training of
local human
resource
5
5
0
2000
2002
2004
2006
2008
2010
21
After ~40 production systems come into stream in Brazil
until 2020, local supplier capacity will turn to Libra
The Libra decade
Petrobras Oil and NGL production curve in Brazil
Oil production (MM bpd)
4,2
Real production
4,0
Expected production
2,1
2,3
2,5
14
15
16
3,0
1,9
2,0
3,8
3,3
2,8
From 2020 to 2030...
... the domestic
supplier capacity
developed for the
Pre-salt concession
and TR projects will
heavily support Libra
1,0
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2013
• Sapinhoá
Pilot
• Lula NE Pilot
• Baúna
• Papa-Terra
(P63)
• Roncador
2014
• Sapinhoá
Norte
• Iracema Sul
• Norte Pq
Baleias
• Roncador IV
• Papa-Terra
(P61)
• Papa-Terra
(TAD)
2015
• Iracema Norte •
•
•
•
•
•
17
18
2016
2017
Lula Alto
Lula Central
Lula Sul
Lula Norte
Búzios I
Lapa
• Lula Ext. Sul
e ToR Sul de
Lula
• Lula Oeste
• Iara Horst
• Búzios III
• Buzios IV
• Tartarga
Verde and
Mestiça
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2018
•
•
•
•
•
•
•
•
•
20
2019
2020
NE de Tupi
• Jupiter
• Florim
Iara NW
• Búzios V
• Espadarte III
Carcará
• Deep Water II
SE
Ent. Iara
• Marlim II
Deep Water
Revitalization
ES
• Libra
Marlim I
Revitalization
New Discoveries
Deep Water I
SE
Transfer of Rights
Sul Pq das
Pre-salt Concession
Baleias
Other Areas
Maromba I
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Going forward, we aim to be a benchmark JV for the next
generation of pre-salt development…
PPSA
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Thank you!
For more information contact:
Roberto Gomes
28 years old
Petrobras Engineer since 2008
Petróleo Brasileiro S.A – PETROBRAS
Investor Relations Department
www.petrobras.com.br/ri
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