Brazil in Context An overview of the Oil and Gas industry

Transcription

1 Brazil in Context An overview of the Oil and Gas industry September 2010

2 Oil & Gas Key Facts

3 Oil & Gas Key Facts Reserves, Production & Consumption Statistics Brazil Crude Oil 2009 Proven Reserves 12,86 billion barrels Production 2,03 million barrels per day R/P Ratio 17,36 years Consumption 2,40 million barrels per day Natural Gas 2009 Proven Reserves Production* 360,97 billion cubic meters 11,89 billion cubic meters R/P Ratio 30,36 years Consumption 20,31 billion cubic meters *Excludes gas flared or recycled. Fonte: BP Statistical Review (2010) 3 Deloitte

4 History of Oil & Gas Exploration 4 Deloitte

5 History of Oil & Gas Exploration 5 Deloitte

6 History of Oil & Gas Exploration 6 Deloitte

7 Oil & Gas Key Facts Reserves, Production & Consumption Statistics The proven reserves in Brazil correspond to 12.8 billion barrels in 2008 (volume 1.4% higher than in 2007). In 2008, Brazil was in 16 th positionintheworldrankingastoprovenoil reserves. Of proven reserves nationals, 93% were located offshore and 7% were situated onshore. The rate of oil supply expansion will be determined largely by Petrobras and IOC spending. Statoil plans to begin production at its Peregrino field (60,000b/d) by Petrobras and partners plan pilot production at Tupi of 100,000 b/d and 4 MM m³ by December of Over the longer term, the potential of the new Tupi and pre-salt oil discoveries could add greatly to Brazilian oil and gas production, boosting output to 1 MM bbl/d by Oil Production Natural Gas Production 2,50 70,00 M M bbl/day 2,00 1,50 1,00 0,50 MM m³/day 60,00 50,00 40,00 30,00 20,00 10, Brazil Campos Basin Brazil Campos Basin Source: PetroView (2010) 7 Deloitte

8 Oil & Gas Exploration The discovery of significant new plays in the Campos Basin has the focus on exploratory activities from global and local independent companies, which may result in findings such as Anadarko s Wahoo discovery in Campos basin in a pre-salt Cretaceous carbonate formation. 8 Deloitte

9 Regulatory Framework

10 Regulatory Framework Concessions Petroleum exploration and production activities must be carried out pursuant to a concession agreement granted, following a competitve bidding round. Since the enactment of the 1997 Petroleum law Brazil has held 10 bidding rounds, which grants the concessionaire an exploration period that may vary from 3 to 9 years. The bidding factors are determined as follows: Factor Weighting (%) Signature bonus 40% Local Content 20% Minimium exploratory program (PEM) 40% In case of discovery, to the concessionaire is given the right to produce for a period of 27 years. The licence holder is then subject to payment of: i. Royalties; ii. Land owner compansation or rental fee iii. Special participation iv. Other taxes. *Corresponde a produção total do estado Fonte: IBGE e ANP 10 Deloitte

11 Regulatory Framework Bidding Rounds History Constitutiona l Amendment No. 9 of 10 November 1995 ANP is Established; Round Zero 397 Contracts signed Round 5 CNPE starts to define Energy Policy Round Changes in PEM and Local Content regulation Round 9 blocks adjacent to the pre-salt cluster withdrawn Law 9478/97 (Petroleum Law) Creates ANP & CNPE 4 Bidding Rounds ANP responding for all steps from Round 1 to 4. Round 6 was approved by MME as referendum of CNPE Round 8 Suspended by a Legal Injunction Round 10 with only onshore areas 11 Deloitte

12 Regulatory Framework Pre-Salt Milestones Round 9 blocks adjacent to the pre-salt cluster withdrawn Four bills proposed for regulatory change. May/2009 First Oil n Santos Pre Salt Cluster in Tupi Tupi pilot production 100,000 b/d and 4 MM m Wells Spud Date BM-S-11 Tupi BM-S-10 Parati BM-S-9 Carioca BM-S-12 Tupi Sul BM-S-21 Caramba BM-S-8 Bem te Vi BM-S-22 Jupiter BM-S-9 Guará BM-S-11 Iara BM-S-22 Azulão BM-S-9 Iguacu BM-S-11 Iracema BM-S-22 Guarani BM-S-9 Abara Oeste BM-S-11 Tupi Nordeste BM-S-11 Tupi Alto 12 Deloitte

13 Regulatory Framework Pre-Salt Milestones Regarding the new proposed laws for the pre-salt area in Brazil the government may contract Petrobras directly (transfer of rights with compensation) or may include the area as a production sharing agreement. In the PSA Petrobras must operate all blocks (min 30% of participation) and may participate on the bid to increase its steak. The consortium will be managed by the operational committee and the winning bidder will be the company that offers the highest profit oil. Pre Salt and Strategic Areas Transfer of rights with compensation Production Sharing Agreement Increase PBRAS financial capacity. 1. PBRAS 100% 2. PBRAS min 30% bidding 70% Other Areas Current concession model 1. Round 8 blocks will be reoffered 2. Round 11 Nov/ Deloitte

14 Regulatory Framework Pre-Salt Milestones The government may contract Petrobras directly and the consortium: (i) Petrobras must operate all blocks (min 30% of participation); (ii) Petrobras may participate on the bid to increase its steak and (iii) the consortium will be managed by the operational committee. The winning bidder will be the company that offers the highest profit oil Pre Salt and Strategic Areas Production Sharing Agreement 1. PBRAS 100% 2. PBRAS min 30% bidding 70% 14 Deloitte

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