Pre-Salt Reservoirs Offshore Brazil: Perspectives and Challenges José Formigli PETROBRAS E&P Production Engineering November 2007
DISCLAIMER The presentation may contain forecasts about future events. Such forecasts merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. The Company is not obliged to update the presentation/such forecasts in light of new information or future developments. Cautionary Statement for US investors: The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SEC s guidelines strictly prohibit us from including in filings with the SEC.
New Discoveries Pre-Salt Reservoirs TUPI AREA (BMS-11): light oil (28º API) in a new frontier in the Santos Basin. Caxaréu Field light oil (30 API) in the northern part of the Campos Basin Pirambu Field light oil (29 API) in the northern part of the Campos Basin Jubarte Field light oil in the northern part of the Campos Basin
Santos Basin Pre-Salt Seismic Section
Tested wells in the Pre-salt play Tested wells Tupi Area 5 to 8 billion barrels
Some production tests performed on the Pre-Salt 1-RJS-628A 1-RJS-617 3-RJS-646 1-SPS-050 50 150 N 0 100 200 km
Pre-Salt in the Santos Basin 133 km PMXL 290 km BM-S-42 22 km 166 km 200 km BM-S-42 BM-S-10 RJS-617 SPS-52 BM-S-8 SPS-50 BM-S-9 RJS-628 BM-S-11 RJS-646 BM-S-24 BM-S-17 SPS-51 BM-S-21 Tupi Area 5 to 8 Billion barrels
Consortia for the Pre-salt blocks in Santos Basin Bloco Appraisal Plan Consortium BM-S-8 BR (66%), SHELL (20%), PETROGAL (14%) BM-S-9 SPS-50 Area BR (45%), BG (30%), REPSOL (25%) BM-S-10 RJS-617 Area BR (65%), BG (25%), PARTEX (10%) BM-S-11 RJS-628 Area BR (65%), BG (25%), PETROGAL (10%) BM-S-17 BR (100%) BM-S-21 BR (80%), PETROGAL (20%) BM-S-22 ESSO (40%), AMERADA (40%), BR (20%) BM-S-24 BR (80%), PETROGAL (20%) BM-S-42 BR (100%) BM-S-50 BR (60%), BG (20%), REPSOL (20%) BM-S-52 BR (60%), BG (40%) 2 blocks 100% Petrobras 3 Appraisal Plans approved 5 blocks with partners, Petrobras operates 1 block as non-operating partner
General Data BM-S-11 (Tupi Area) Petrobras (65%), BG (25%), Petrogal GALP (10%) Heterogeneous layered carbonates - variable reservoir quality Water Depth about 2,200 m Salt layers with thickness till 2,000 m Well tests indicate potential flow rates of 15-20000bopd per well Oil API: 28-30º Oil viscosity around 1 cp GOR between 140 and 220 m 3 /m 3 Initial pressure 580 kgf/cm 2 Low TAN (Total Acid Number) CO2 in the associated gas (8-18%) Concern with flow assurance due to paraffin deposition in pipes
BM-S-11 TUPI Area Selected Area for the Pilot: 110 km 2 Area of the Appraisal Plan: 936 km 2 Recoverable volume just for the upper reservoir, for the whole area: 4.5 billion bbl. As two other carbonate reservoirs were found in RJS-646, the preliminary estimatives for the recoverable volume for the whole Tupi area can reach 8 billion bbl (upper case) Lower case: 5 billion bbl Upper case: 8 billion bbl
Extended Well Test in the Tupi Area EXTENDED WELL TEST 1 well connected to a DP FPSO, already under convertion, to investigate the reservoir behavior. Scheduled to early 2010. Dynamic Positioning FPSO Shuttle Tanker
Pre-salt discoveries in Espírito Santo State (Campos Basin) 4-ESS-149 CHT BLA 1-ESS-116 1-ESS-122 6-CHT-4 N Gasene 3-ESS-110HPA JUB BAZ 4-ESS-135 1-ESS-119 BFR NAU 1-ESS-103 1-ESS-125 MGG 1-ESS-103A-ES S 4-ESS-172-ES 4-ESS-172 CXR PRB 3-ESS-175 4-ESS-175-ES CTU 77 km Well tests showed high productivities in the pre-salt reservoirs. Cachalote Anã Argonauta Jubarte Franca Náutilus Ostra 20 km Caxaréu Azul Mangangá Abalone Pirambú Catuá
Pre-Salt discovery in the Northern Part of the Campos Basin: ESS-103A well (Jubarte Field) Oil Production flowline Electro-Hydraulic Umbilical Power cable Service Line Shuttle P-34 LDA: 1343 m 3-ESS-110HPA 7-JUB-2HPA 7-JUB-06 7-JUB-04HP Ancoragem Current plans consider ESS-103 start up in April, 2008, connected to the P- 34 FPSO. 1-ESS-103A Ongoing studies indicate that other presalt wells could be connected to the
Mobilizing critical resources Petrobras strategy Long run standardization program for most well design/ related equipment, as well as subsea hardware (wellheads, subsea trees, flexible lines, ) Extending this strategy to FPSO/Semi-Submersible design; ex: Opportunity FPSOs and FPSO Flex DP FPSO (2nd in the fleet) for Extended Well Test already under conversion Established batch orders with key suppliers for long lead itens Mobilized fleet + current negotiations with contractors for rigs, laying vessels, anchor handlers, Established long term contracts with Service Companies Implemented culture for running fast track projects: Golfinho FPSOs, Plangas FPSOs, Roncador 1st DP FPSO, Interacting with the market for gas transportation to shore through alternative solutions in relation to traditional trunk line (LNG, CNG, GTW, ) Running negotiations with partners for project s scope and budget approvals
Technological Challenges
Technological Challenges - I Reservoir Facies definition from seismic data. Internal reservoir characterization, with focus on the main heterogeneities. Secondary recovery: technical feasibility of water and gas injection. Geomechanics of the surrounding rocks with depletion. Well Engineering: Deviation of the wells into the salt zone. Hydraulic fracture in horizontal wells. Wellbore materials, resistant to high CO2 content. Slow penetration in the reservoir.
Technological Challenges II Flow assurance Paraffin deposition in long pipelines. Hydrate control. Scaling control. Logistics for the associated gas Gas pipeline larger than 18 in water depth of 2,200 m. Long distance to shore (300 km). Scenario for new technologies offshore: LNG, CNG, GTL, GTW, etc.
Technological Challenges - III Floating Production Units Mooring in water depths of 2,200 m Interaction with the riser s system Scenario for platforms with access to the wells (SPAR, FPDSO) Subsea engineering Qualification of risers for water depth of 2,200 m, considering CO2 and high pressure. Scenario for riser towers, SCRs with lazy wave and other technologies. Qualification of thermal insulated flowlines for water depths of 2,200 m. Flowlines for high pressure gas injection
Petrobras Technological Corporate Programs PROPES PROSAL TECHNOLOGY PROGRAM ON NEW EXPLORATORY FRONTIERS
PROSAL - Pre-Salt Technological Program CENPES Objective: Develop and disseminate technologies to incorporate reserves and to develop the production of the recent discoveries in the pre-sal section. Projects Portfolio: 137 Laboratories 30 Pilot Plants Well construction for the pre-salt section (drilling fluids, cement resistance, stimulation techniques, geomechanical model, liner drilling, well control in the salt zone, multilaterals). Geoscience (chemical stratigraphy, core-log-test integration, geomechanical model and fracture distribution, pre-sal imaging, seismic attributes) Reservoir Engineering: Recovery optimization
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