2010 Brazil Oil & Gas 2010 Brazil Oil & Gas Seminar Seminar Magda Chambriard Director Brazilian Petroleum Agency Pre-Salt Opportunities Pre-Salt Opportunities & & New Regulatory Framework New Regulatory Framework
Feb 05, 2016
2010 Brazil Oil & Gas Seminar2010 Brazil Oil & Gas Seminar
Magda Chambriard Director
Brazilian Petroleum Agency
Pre-Salt OpportunitiesPre-Salt Opportunities&&
New Regulatory FrameworkNew Regulatory Framework
Self-sufficiencyPre-salt discovery
2001200119981998 1999199919951995 2003200320002000 2002200219971997 20042004 20052005 20062006
Constitutional Amendment Nº 9/95
Law nº 9.478/97 – Creation of ANP & CNPE(National Energy Policy Council)
Implementation of the ANP
Concession contracts signed with Petrobras (Round Zero) GT ~ 60/65%
20072007
Directive CNPE nº 8/03
ANP studies the areas, defines the blocks and promotes the bidding rounds.
ANP studies areas and promotes the bidding rounds according CNPE approval.
20082008 20092009
Bill 5.938/2009 for the Pre-Salt
areas
Institutional Evolution Institutional Evolution O&G sectorO&G sector
Pre-salt IM group
ProductionOil e LGN – 2,03 million bbl/dayGas – 57,9 million m3/day
Imports/Exports Balance
Oil – 132,5 thousand bbl/dayGas – 23,5 million m3/day
Proven Reserves(*)Oil – ~13 billion bblGas – ~366 billion m3
Current scenarioCurrent scenario(2009)(2009)
(*) without pre-salt discoveries(*) without pre-salt discoveries
Concession Contracts:Concession Contracts:
Exploratory PhaseExploratory Phase377 blocks (JUN/2010)
Production PhaseProduction Phase368 fields
304 operated by Petrobras
Current scenario Current scenario Concession contractsConcession contracts
38 sedimentary basins38 sedimentary basins
29 principal basins29 principal basins
7,5 million km7,5 million km22
Marlim FieldMarlim Field
Marlim Field:
discovered in 1985 in 835m water depth
Production (DEC/2008): 345 thousand bbl/day
Royalties: R$ 2.15 billion
Special Participation: R$ 4.84 billion
Government Take ~54% (2008)
Proven Reserves (DEC/2008):
1,7 Billion bbl
The Pre-Salt as a New ParadigmThe Pre-Salt as a New Paradigm
Pre-Salt AreaPre-Salt AreaThe study of the Interministerial GroupThe study of the Interministerial Group
2-ANP-1-RJS
2-ANP-2-RJS
Exploratory Rounds (Rounds)
0
1
2
3
4
5
6
7
9
Fields producing/under developmentPre-Salt Polygon (Bill of Law 5.938/2009)
Oil and GasGas
OilWells being drilled (APR/2010)
Pre-Salt Area
Dry well
Production-sharing agreements for E&P in the unlicensed Pre-Salt areas (PL 5.938/09);
Creation of a new state company – Pre-Sal (PL 5.939/09);
Formation of a Social Fund (PL 5.940/09);
Onerous assignment of rights, which shall grant Petrobras the right to produce in certain areas of the Pre-Salt, up to 5 billion boe (PL 5.941/09).
New Regulatory FrameworkNew Regulatory Framework
New rules for E&P in the Pre-Salt area: New rules for E&P in the Pre-Salt area: Four (04) Bills Four (04) Bills
ObjectiveObjective: :
Increase the Brazilian Society benefit on the pre-salt E&P.
Main Rules:Main Rules:
Brazil shall adopt the Production Sharing Contract in the Pre-Salt Area;
Petrobras shall be the only operator in this area with at least 30% participation;
Opportunities in the pre-salt area shall be bidden considering Petrobras as the Operator;
The winner shall be the one who offers the biggest share of oil production to the State;
A New State Company shall run the State share of the contract;
Petrobras can be contracted without a bidding process;
ANP provides the bidding rounds and regulates the contracts.
Production Sharing ContractProduction Sharing ContractBill n. 5.938/09Bill n. 5.938/09
Senate approval on 06/10/2010Senate approval on 06/10/2010
General FeaturesGeneral Features
Pre-Salt Social FundPre-Salt Social FundBill n. 5.940/09Bill n. 5.940/09
Senate approval on 06/10/2010Senate approval on 06/10/2010
Social Fund shall carry out investments in Brazil and abroad in order to diversify the risk and avoid the problems of the “Dutch disease”
Investments shall follow solidity criteria: liquidity, risk classification and diversification, expected return
Investments in Brazil may be used in infrastructure projects
Financial institutions may be hired to act as operating agents
Investment PolicyInvestment Policy
The Social Fund shall use the resources generated by the production-sharing contracts in reducing poverty; education; culture; science and technology; environmental sustainability.
The revenue of the Social Fund will come from the sale of profit oil, from the signature bonus and from the royalties destined to the Federal Government.
The New State CompanyThe New State Company Bill n. 5.939/09Bill n. 5.939/09
Shall have a qualified technical staff, but shall NOT be an operator;
Participates in the PSC on behalf of the Brazilian Government;
Shall have casting vote, according to the contract.
New State CompanyNew State Company
Lower Court approval on 11/18/09
Authorization to assign to Petrobras the right to explore and produce oil and gas up to 5 billion boe, in selected areas not yet under contracts;
Onerous AssignmentOnerous AssignmentBill n. 5.941/09Bill n. 5.941/09
Objective:Objective:
Petrobras capitalizationPetrobras capitalization
Authorization to subscribe and pay in new shares of Petrobras’ joint stock.
Senate approval on 06/10/2010Senate approval on 06/10/2010Senate approval on 06/10/2010Senate approval on 06/10/2010
The decision of drilling wellsThe decision of drilling wells to increase pre-salt value to increase pre-salt value
Franco2-ANP-1-RJS
Exploratory Rounds (Rounds)
0
1
2
3
4
5
6
7
9
Fields producing/under development
Pre-Salt Polygon (Bill of Law 5.938/2009)
Óil and GasGas
Oil
Wells being drilled (APR/2010)
Sísmica 2D Conf NoExc Pos
Sísmica 2D Conf Exc Pos
Sísmica 3D Conf NoExc Pos
Sísmica 3D Pub Exc Pos
Área de Exclusão
Limite TAC (perfuração)
Área pré-sal (PL 5.938/09)
2D Seismic Conf NonExc Pos
2D Seismic Conf Exc Pos
3D Seismic Conf NonExc Pos
3D Seismic Pub Exc Pos
Exclusion Area
TAC Limit (drilling)
Pre-Salt Area (PL 5.938/09)
Libra2-ANP-2-RJS
2-ANP-1-RJS
The decision of drilling wellsThe decision of drilling wells to increase pre-salt value to increase pre-salt value
2-ANP-2-RJS
3D structural map of the salt base as interpreted by the ANP technical staff (2010)
Franco discoveryFranco discovery(2-ANP-1-RJS)(2-ANP-1-RJS)
Forecasted Forecasted Recoverable Volume Recoverable Volume
4,5 Bi bbl4,5 Bi bbl
Fonte: PETROBRAS, 2009
Brazilian OpportunitiesBrazilian OpportunitiesPre-salt Campos & Santos BasinsPre-salt Campos & Santos Basins
(50 billion barrels ?)(50 billion barrels ?)
If proven the way ANP forecasted, Brazil will need to If proven the way ANP forecasted, Brazil will need to invest heavily in infrastructure (platforms, pipelines, oil invest heavily in infrastructure (platforms, pipelines, oil
pipelines, ports, ships, steel, etc.).pipelines, ports, ships, steel, etc.).
In a 1In a 1stst step Brazil considers to hire 40 rigs and semi- step Brazil considers to hire 40 rigs and semi-submersible platforms, 234 ships, including 70 large submersible platforms, 234 ships, including 70 large
ones ones (Lima, 2008)(Lima, 2008)
Santos BasinSantos Basin
Campos BasinCampos Basin
Brazilian OpportunitiesBrazilian OpportunitiesNew Bidding RoundsNew Bidding Rounds
After the approval of the After the approval of the Pre-salt bills ANP shall bid:Pre-salt bills ANP shall bid:
Pre-salt areas under PSCPre-salt areas under PSC (~ 2,3% sedimentary area)(~ 2,3% sedimentary area)
Other areas under Other areas under concession contracts concession contracts
(> 97% sedimentary area(> 97% sedimentary area))
ANP waits for ANP waits for CNPE CNPE approval the 11th Bid approval the 11th Bid
Round; Round;
The 11The 11th Bid Round shall th Bid Round shall focus on the Brazilian focus on the Brazilian
equatorial margin.equatorial margin.
Final RemarksFinal Remarks
The Pre-Salt is a new paradigm in Brazil;The Pre-Salt is a new paradigm in Brazil;
Production-sharing contracts shall be applied for the Pre-Salt area Production-sharing contracts shall be applied for the Pre-Salt area (around 2% of the Brazilian sedimentary area);(around 2% of the Brazilian sedimentary area);
Concession contracts shall be applied for ALL other areas (> 97%);Concession contracts shall be applied for ALL other areas (> 97%);
ANP waits for CNPE approval to promote the 11º bid-round focusing the ANP waits for CNPE approval to promote the 11º bid-round focusing the equatorial margin;equatorial margin;
And to promote a bid round focusing pre-salt opportunities;And to promote a bid round focusing pre-salt opportunities;
In Brazil, opportunities go far beyond the pre-saltIn Brazil, opportunities go far beyond the pre-salt..
Agência Nacional do Petróleo, Gás Natural e Agência Nacional do Petróleo, Gás Natural e
BiocombustíveisBiocombustíveis
Av. Rio Branco, 65Av. Rio Branco, 65
12º ao 22º andar12º ao 22º andar
tel. 21 2112-8100 tel. 21 2112-8100
www.anp.gov.br
Oil Price EvolutionOil Price Evolution
Govern Take Evolution (2002 – 2007)
Brazil – 60% GT
0% 10% 20% 30% 40% 50% 60% 70%
Brasil
Govern Take around the worldGovern Take around the world