Pre-Salt Oil: Developing The Frontier

Transcription

1 Pre-Salt Oil: Developing The Frontier José Sergio Gabrielli de Azevedo CEO November, 16th 2011 JP Morgan 1

2 DISCLAIMER This presentation may contain forward-looking statements. Such statements reflect only the expectations of the Company's management regarding the future conditions of the economy, the industry, the performance and financial results of the Company, among other factors. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar expressions, are used to identify such statements. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Consequently, these statements do not represent assurance of future results of the Company. Therefore, the Company's 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. Cautionary statement for U.S. investors: The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally viable under existing economic and operating conditions. We use certain terms in this presentation, such as discoveries, that the SEC s guidelines strictly prohibit us from including in filings with the SEC. 2

3 Oil Production PRE-SALT S SHORT LAG BETWEEN DISCOVERY AND FIRST-OIL, AND FAST PROJECTED RAMP-UP Pre-Salt GoM (USA) North Sea Campos Basin Years after Discovery Discovery: SS032 (1947) First oil: SS032 (1947) Discovery: Q/13ª (1963) First Oil: Dan (1972) Discovery: Garoupa (1974) First oil: Enchova (1977) Discovery: Parati (2006) First oil: Tupi (2009) 3

4 Discoveries New Rigs FPSOs/EWTs FPSOs/ Definitive Systems Infraestructure SANTOS PRE-SALT MASTER PLAN S HIGHLIGHTS FROM 2006 TO Lula Pilot (AR) Tupi (CSV) Guará (DP) Pre-Salt/Parati Tupi (Lula) Carioca Caramba Júpiter Iara Bem-Te-Vi Guará Iracema (cernambi) Franco

5 New Rigs FPSOs/EWTs FPSOs/ Definitive Systems Infrastructure... AND FROM 2011 ONWARDS Route 2 Route 3 Pipeline Lula-Mexilhão Guará Pilot Lula NE Pilot Guará Norte Cernambi Sul Replic. 1 Replic. 2 Tranfer of Rights 1 Replic. 3, 4, 5, 6, 7, 8 Tranfer of Rights 2, 3 and EWTs 3 EWTs 5 EWTs 5 EWTs already contracted + 21 to be contracted

6 Months MORE DRILLING RIGS WILL ENABLE A FASTER RAMP-UP OF THE NEW PLATFORMS 20 To reach 50% of capacity To reach 75% of capacity Forecast P-43 P-48 P-50 P-52 P-54 P-53 P-51 FPSO CAPIXABA P Water Depth Up to 1,000 meters ,000 to 2,000 meters Over 2,000 meters

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% 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. Gathering Completion + Drilling Units * Generic example, considering that these rates can change among the different existing projects in Campos Basin 7

8 Number of wells (phase 1a) PRE-SALT S ECONOMICS: PRODUCTIVITY GAINS... 8 Average drilling time of the wells completed during the year Drilling needs 100% - 15% 85% 75% 66% 2006/ PN PN

9 RESULTING IN A HIGHER EXPECTED NPV 200% Investment 150% 100% 50% 0% - 45% 100% 81% - 32% 55% PLANSAL 2008 ( ) PLANSAL 2009 ( ) PLANSAL 2010 ( ) 200% Net Present Value 150% 100% 50% 100% 118% 152% 0% PLANSAL 2008 ( ) PLANSAL 2009 ( ) PLANSAL 2010 ( ) 9

10 NATURAL GAS PRODUCTION Start-up of Plangas and Pre-salt projects will substantially increase capacity Jurua Urucu Coari Manaus UGN RPBC UTGCA Mexilhão Urugua Million m Non-Associated Natural Gas Mexilhão 15MM m3/day Uruguá-Tambaú 10 MM m3/day Juruá 2 MM m3/day Associated Natural Gas Increasing production in the Campos and Santos Basins Associated Natural Gas from the Pre-salt Natural gas production from Pre-salt in Santos Basin to surpass 20 MM m3/day PMLZ-1 Lula 95 10

11 LOGISTICS AND INFRASTRUCTURE 11

12 E&P INVESTMENTS IN BRAZIL Pre-salt now more than half of development spending over the next five years Pre-Salt US$ 53.4 Billion Post-Salt US$ 64.3 Billion 12% 13% Tranfer 2% of Rights 21% 21% 22% 54% 57% Development Infrastructure and support Exploration 12

13 PETROBRAS TOTAL RESERVES AND POTENTIAL RECOVERABLE VOLUMES Continuous growth from deeper discoveries Million boe Potential increase Onshore m m > 1500 m Pre-salt's Recoverable Volume Transfer of Rights 13

14 000 boe/day PRODUCTION TARGETS With broad access to new reserves, Petrobras can more than double its production in the next decade 6, ,386 2,516 2, , Post-Salt Projects +8 Pre-Salt Projects +1 Transfer of Rights Added Capacity Oil: 2,300,000 bpd 3, , Systems Transfer of Rights Pre-Salt 4, , Oil Production - Brazil Natural Gas Production - Brazil Oil Production - International Natural Gas Production - International 14

15 MAIN E&P PROJECTS Large projects sustain production increases Natural Gas Pre-Salt and Transfer of Rights Post-Salt EWTs Th bpd Lula Pilot FPSO BW Cidade Angra dos Reis bpd Cachalote and Baleia Franca FPSO Capixaba bpd Uruguá FPSO Cidade de Santos bpd Jubarte FPSO P bpd Tiro Pilot SS-11 Atlantic Zephir bpd EWT Guará FPSO Dynamic Producer bpd Mexilhão Jaqueta HG Tambaú FPSO Cidade de Santos NG Marlim Sul module 3 SS P bpd EWTs Lula NE e Cernambi FPSO BW Cidade São Vicente bpd EWT Carioca FPSO Dynamic Producer bpd Guará Pilot 2 FPSO Cidade de São Paulo bpd Baleia Azul FPSO Cidade de Anchieta bpd (FPSO Espadarte reallocation) Roncador module 3 SS P bpd Tiro/Sidon FPSO Cidade de Itajaí bpd 4 EWTs Pre-salt Juruá GNA Lula NE FPSO Cidade de Paraty bpd Parque das Baleias FPSO P bpd Papa-Terra TLWP P-61 & FPSO P bpd Roncador Módule 4 FPSO P bpd Aruanã FPSO bpd 3 EWTs Pre-salt Guará (North) FPSO bpd Cernambi South FPSO bpd Baleia Azul FPSO bpd Siri Jaqueta e FPSO bpd 5 EWTs Pre-salt Franco 1 Transfer of Rights FPSO bpd FPSO P-67 Replicant bpd BMS-9 our FPSO P-66 Replicant bpd BMS-9 or 11 Maromba FPSO bpd ESP/Marimbá FPSO bpd 5 EWTs Pre-salt

16 VARREDURA PROJECT Technological development and exploratory optimization in existing concessions Discoveries in Pre-salt Campos Basin 2009/10 (Varredura) Descobertas do Pr é - sal na Bacia de Campos 2009/10 (VARREDURA) Recoverable volumes 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 Wells productivity close to 15,000 bpd 67 exploratory wells will be drilled between 2011 and 2015 in production areas in Campos basin 16

17 CUTTING-EDGE TECHNOLOGIES OIL/WATER SUBSEA SEPARATION - Resolves limitations from growing water production - Separates water and oil under the sea, reinjecting water and relieving the size of the surface equipment on the platform - Field: Marlim (Nov/2011) RAW WATER INJECTION - Increases production in existing systems - 3 subsea systems for pumping raw water (with little treatment) to pressurize the reservoir, increasing recovery factor without increasing surface systems. Pioneer in the world in such water depth - Field: Albacora (Dec/2011) 17

18 NEW VESSELS AND EQUIPMENTS Resources required for production growth Critical Resources Current Situation (Dec/10) Delivery Plan (to be contracted) Accumulated Value By 2013 By 2015 By 2020 Drilling Rigs Water Depth Above m (1) 65 (2) Supply and Special Vessel Production Platforms (SS and FPSO) Others (Jacket and TLWP) Supply Vessel Drilling Rig FPSO DRILLING RIGS UNDER CONTRACT Water Depth Up to 1,000 meters ,000 to 2,000 meters Over 2,000 meters (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

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