Pre-Salt Oil: Developing The Frontier        José Sergio Gabrielli de Azevedo                                     CEO     ...
DISCLAIMER  This presentation may contain forward-looking      Cautionary statement for U.S. investors:  statements. Such ...
PRE-SALT’S SHORT LAG BETWEEN DISCOVERY AND FIRST-OIL, AND FAST PROJECTEDRAMP-UP Oil Production                            ...
SANTOS PRE-SALT MASTER PLAN’S HIGHLIGHTS FROM 2006 TO 2010 ...                     Infraestructure  Definitive Systems    ...
... AND FROM 2011 ONWARDS                                                                      Route 2                    ...
MORE DRILLING RIGS WILL ENABLE A FASTER RAMP-UP OF THE NEW PLATFORMS         20              To reach 50% of capacity     ...
CAPITAL COSTS: PRE-SALT vs. CAMPOS Similar equipment and processes: main difference is drilling and completion            ...
8PRE-SALT’S ECONOMICS: PRODUCTIVITY GAINS ...   Average drilling time of the wells completed                              ...
… RESULTING IN A HIGHER EXPECTED NPV                                              Investment        200%        150%      ...
NATURAL GAS PRODUCTIONStart-up of Plangas and Pre-salt projects will substantially increase capacity                      ...
LOGISTICS AND INFRASTRUCTURE                               11
E&P INVESTMENTS IN BRAZILPre-salt now more than half of development spending over the next five years               Pre-Sa...
PETROBRAS’ TOTAL RESERVES AND POTENTIAL RECOVERABLE VOLUMESContinuous growth from deeper discoveries                      ...
PRODUCTION TARGETSWith broad access to new reserves, Petrobras can more than double its production inthe next decade      ...
MAIN E&P PROJECTS                                                                                       Natural GasLarge p...
VARREDURA PROJECTTechnological development and exploratory optimization in existing concessions        Discoveries in Pre-...
CUTTING-EDGE TECHNOLOGIES             OIL/WATER SUBSEA                            RAW WATER                SEPARATION     ...
NEW VESSELS AND EQUIPMENTS Resources required for production growth                                                       ...
19 19
Upcoming SlideShare
Loading in …5
×

Pre-Salt Oil - Developing The Frontier | CEO José Sergio Gabrielli de Azevedo - JP Morgan

3,277 views
3,107 views

Published on

Published in: Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,277
On SlideShare
0
From Embeds
0
Number of Embeds
1,100
Actions
Shares
0
Downloads
92
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Pre-Salt Oil - Developing The Frontier | CEO José Sergio Gabrielli de Azevedo - JP Morgan

  1. 1. Pre-Salt Oil: Developing The Frontier José Sergio Gabrielli de Azevedo CEO November, 16th 2011 JP Morgan 1
  2. 2. DISCLAIMER This presentation may contain forward-looking Cautionary statement for U.S. investors: statements. Such statements reflect only the expectations of the Companys management The United States Securities and Exchange regarding the future conditions of the economy, Commission permits oil and gas companies, the industry, the performance and financial in their filings with the SEC, to disclose results of the Company, among other factors. proved reserves that a company has Such terms as "anticipate", "believe", "expect", demonstrated by actual production or "forecast", "intend", "plan", "project", "seek", conclusive formation tests to be economically "should", along with similar expressions, are and legally viable under existing economic used to identify such statements. These and operating conditions. We use certain predictions evidently involve risks and terms in this presentation, such as uncertainties, whether foreseen or not by the discoveries, that the SEC’s guidelines strictly Company. Consequently, these statements do prohibit us from including in filings with the not represent assurance of future results of the SEC. Company. Therefore, the Companys future results of operations may differ from current expectations, and readers must not base their expectations solely on the information presented herein. The Company is not obliged to update the presentation and forward-looking statements in light of new information or future developments. Amounts informed for the year 2011 and upcoming years are either estimates or targets. 2
  3. 3. PRE-SALT’S SHORT LAG BETWEEN DISCOVERY AND FIRST-OIL, AND FAST PROJECTEDRAMP-UP Oil Production Years after Discovery 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 Pre-Salt GoM (USA) North Sea Campos Basin Discovery: SS032 (1947) Discovery: Q/13ª (1963) Discovery: Garoupa (1974) Discovery: Parati (2006) First oil: SS032 (1947) First Oil: Dan (1972) First oil: Enchova (1977) First oil: Tupi (2009) 3
  4. 4. SANTOS PRE-SALT MASTER PLAN’S HIGHLIGHTS FROM 2006 TO 2010 ... Infraestructure Definitive Systems FPSOs/ Lula Pilot (AR) FPSOs/EWTs Tupi (CSV) Guará (DP) New Rigs 2 2 1 3 6 Júpiter Discoveries Pre-Salt/Parati Carioca Iracema Iara Bem-Te-Vi (cernambi) Franco Tupi (Lula) Caramba Guará ... 2006 2007 2008 2009 2010 4
  5. 5. ... AND FROM 2011 ONWARDS Route 2 Route 3 Infrastructure Pipeline Lula-Mexilhão Replic. Replic. Definitive Systems Guará Guará 1 3, 4, 5, 6, Pilot Norte 7, 8 FPSOs/ Replic. Lula NE Cernambi 2 Tranfer of Pilot Sul Tranfer of Rights Rights 2, 3 and 4 1 FPSOs/EWTs 3 4 EWTs 3 EWTs 5 EWTs 5 EWTs New Rigs 6 8 8 already contracted + 21 to be contracted ... 2011 2012 2013 2014 2015 2016+ 5
  6. 6. MORE DRILLING RIGS WILL ENABLE A FASTER RAMP-UP OF THE NEW PLATFORMS 20 To reach 50% of capacity To reach 75% of capacity 16 Forecast 12Months 8 4 0 P-43 P-48 P-50 P-52 P-54 P-53 P-51 FPSO P-57 CAPIXABA 2004 2005 2006 2007 2007 2008 2009 2010 2010 Water Depth 2006 2008 2010 2011 2012 2013 Up to 1,000 meters 6 11 11 1,000 to 2,000 meters 19 19 21 +2 +1 +1 Over 2,000 meters 2 3 15 +10 +13 +1 6
  7. 7. CAPITAL COSTS: PRE-SALT vs. CAMPOS Similar equipment and processes: main difference is drilling and completion PRE-SALT CAPEX DISTRIBUTION 27% 20% 53% Gathering Completion + Drilling Units DEEPWATER PROJECTS IN CAMPOS BASIN* CAPEX DISTRIBUTION 33,3% 33,3% Additional drilling and completion cost in the pre-salt compared with an generic deepwater project in Campos basin can be partially or fully offset by higher quality and quantity of oil expected in the pre-salt area. 33,3% Gathering Completion + Drilling Units* Generic example, considering that these rates can change among the different existing projects in Campos Basin 7
  8. 8. 8PRE-SALT’S ECONOMICS: PRODUCTIVITY GAINS ... Average drilling time of the wells completed Drilling needs during the year - 15% 100% Number of wells (phase 1a) 85% 75% 66% 2006/2007 2008 2009 2010 PN 2010-2014 PN 2010-2015 8
  9. 9. … RESULTING IN A HIGHER EXPECTED NPV Investment 200% 150% 100% - 45% 50% 100% 81% - 32% 55% 0% PLANSAL 2008 (2008-2030) PLANSAL 2009 (2008-2030) PLANSAL 2010 (2008-2030) Net Present Value 200% 150% 100% 152% 50% 100% 118% 0% PLANSAL 2008 (2008-2030) PLANSAL 2009 (2008-2030) PLANSAL 2010 (2008-2030) 9
  10. 10. NATURAL GAS PRODUCTIONStart-up of Plangas and Pre-salt projects will substantially increase capacity Manaus Coari Jurua Urucu UTGCA Mexilhão Urugua UGN RPBC PMLZ-1 LulaMillion m3 100 2011-15 95 Non-Associated Natural Gas 80 Mexilhão – 15MM m3/day 75 Uruguá-Tambaú – 10 MM m3/day 2015-20 60 55 Associated Natural Gas 42 Juruá – 2 MM m3/day from the Pre-salt 40 Associated Natural Gas Natural gas production from 20 Increasing production in the Pre-salt in Santos Basin to Campos and Santos Basins surpass 20 MM m3/day 0 2010 2011 2015 2020 10
  11. 11. LOGISTICS AND INFRASTRUCTURE 11
  12. 12. E&P INVESTMENTS IN BRAZILPre-salt now more than half of development spending over the next five years Pre-Salt Post-Salt US$ 53.4 Billion US$ 64.3 Billion 13% 12% Tranfer 2% of 21% 22% Rights 21% 54% 57% Development Infrastructure and support Exploration 12
  13. 13. PETROBRAS’ TOTAL RESERVES AND POTENTIAL RECOVERABLE VOLUMESContinuous growth from deeper discoveries Potential increase Million boe 30.000 25.000 20.000 15.000 10.000 5.000 0 Onshore 0-300 m 300-1500 m > 1500 m Pre-salts Recoverable Volume Transfer of Rights 13
  14. 14. PRODUCTION TARGETSWith broad access to new reserves, Petrobras can more than double its production inthe next decade 6,418 142 246 1.120 3,993 + 35 Systems 125 180 2,772 618 2,516 2,575 2,386 96 96 93 99 141 +10 Post-Salt Projects 132 144 435 4,910 111 317 334 +8 Pre-Salt Projects 321 +1 Transfer of Rights 3,070 845’000 boe/day Transfer of Rights 1.855 1.971 2.004 2.100 Added Capacity Oil: 2,300,000 bpd 13 Pre-Salt 1,148 543 2008 2009 2010 2011 2015 2020 Oil Production - Brazil Natural Gas Production - Brazil Oil Production - International Natural Gas Production - International 14
  15. 15. MAIN E&P PROJECTS Natural GasLarge projects sustain production increases Pre-Salt and Transfer of Rights Post-Salt EWTs Lula Pilot FPSO BW Cidade Angra dos Reis 100.000 bpd  Juruá GNA Lula NE Franco 1 Transfer of FPSO Cidade de Rights  Cachalote and Mexilhão Paraty FPSO  Baleia Franca Jaqueta Guará Pilot 2 120.000 bpd 150.000 bpd FPSO Capixaba HG FPSO Cidade de 100.000 bpd São Paulo Parque das Guará (North) FPSO P-67 Tambaú 120.000 bpd Baleias FPSO Replicant 2 FPSO Cidade de FPSO P-58  Uruguá 150.000 bpd 150.000 bpd  FPSO Cidade de Santos 180.000 bpd BMS-9 our11 Santos NG Baleia Azul FPSO Cidade de Cernambi SouthTh bpd 35.000 bpd Anchieta Papa-Terra FPSO 3.070 Marlim Sul TLWP P-61 & 150.000 bpd 100.000 bpd  module 3 FPSO P-63 3000 Jubarte (FPSO Espadarte 150.000 bpd SS P-56 FPSO P-57 reallocation) 100.000 bpd 180.000 bpd FPSO P-662500 Replicant 1 2.100 150.000 bpd 2.004 Baleia Azul Roncador FPSO BMS-9 or 112000 Roncador module 3 Módule 4 60.000 bpd  EWTs Lula NE e SS P-55 Maromba FPSO P-62  Tiro Pilot Cernambi 180.000 bpd FPSO1500 180.000 bpd SS-11 FPSO BW Cidade 100.000 bpd Atlantic Zephir São Vicente Siri Tiro/Sidon 30.000 bpd 30.000 bpd Aruanã Jaqueta e FPSO ESP/Marimbá1000 FPSO Cidade de FPSO 50.000 bpd FPSO Itajaí 100.000 bpd 40.000 bpd 80.000 bpd  EWT Guará EWT Carioca 500 FPSO Dynamic Producer 30.000 bpd FPSO Dynamic Producer 30.000 bpd  4 EWTs Pre-salt 3 EWTs Pre-salt 5 EWTs Pre-salt 5 EWTs Pre-salt 0 2010 2011 2012 2013 2014 2015 15
  16. 16. VARREDURA PROJECTTechnological development and exploratory optimization in existing concessions Discoveries in Pre-salt Descobertas do Pr é-sal Recoverable volumes Campos Basin 2009/10 na Bacia de Campos 2009/10 (VARREDURA) (Varredura) discovered: Post-salt: 1,105 MM boe (Marimbá, Marlim Sul and Pampo) Pre-salt: 1,130 MM boe* (Barracuda, Caratinga, Marlim, Marlim Leste, Albacora and Albacora Leste) *No volumes have been announced for the Marlim Leste and Albacora Leste discoveries 67 exploratory wells will be drilled Wells productivity close to between 2011 and 2015 in production 15,000 bpd areas in Campos basin 16
  17. 17. CUTTING-EDGE TECHNOLOGIES OIL/WATER SUBSEA RAW WATER SEPARATION INJECTION - Resolves limitations from growing - Increases production in existing water production systems - Separates water and oil under the - 3 subsea systems for pumping raw sea, reinjecting water and relieving water (with little treatment) to the size of the surface equipment pressurize the reservoir, increasing on the platform recovery factor without increasing - Field: Marlim (Nov/2011) surface systems. Pioneer in the world in such water depth - Field: Albacora (Dec/2011) 17
  18. 18. NEW VESSELS AND EQUIPMENTS Resources required for production growth Delivery Plan (to be contracted) Current Situation Accumulated Value Critical Resources (Dec/10) By 2013 By 2015 By 2020 Drilling Rigs Water Depth Above 2.000 m 15 39 37 (1) 65 (2) Supply and Special Vessel 287 423 479 568 Production Platforms (SS and FPSO) 44 54 61 94 Others (Jacket and TLWP) 78 80 81 83 Supply Vessel Drilling Rig FPSO DRILLING RIGS UNDER CONTRACT Water Depth 2006 2008 2010 2011 2012 2013 Up to 1,000 meters 6 11 11 1,000 to 2,000 meters 19 19 21 +2 +1 +1 Over 2,000 meters 2 3 15 +10 +13 +1(1) The contracts for two rigs reallocated from international operations expire in 2015(2) Long-term demand will be adjusted according to new assessments 18
  19. 19. 19 19

×