January 11, 2013 Block BS-4 Atlanta Field Early Production System (EPS)
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Agenda Block BS-4 Early Production System (EPS) Reservoir and Flow System Drilling and Completion Surface Facilities Production and Investments
CONSORTIUM OF BLOCK BS-4 Block BS-4 30% OPERATOR 30% 40%* * The transfer of Petrobras s participating interest to OGX Petróleo e Gás Participações S.A. is subject to approval by the ANP. P. 4
BLOCK BS-4: OVERVIEW SANTOS BASIN Atlanta and Oliva Fields W N E Oil in place: 2.1 bi boe S S-M-172 185 km off the Coast: Atlanta Water Depth: 1,550 meters TAMBAÚ S-M-239 Pre-salt exploratory potential URUGUÁ TAMBUATÁ S-M-330 Oliva 2000 FRANCO LI BRA 2000 20 10 0 20 KM Pre-salt Oil Discoveries QGEP Blocks 3D Coverage Production Fields Exploration Blocks Pre-Salt Ring Fence P. 5
MAJOR MILESTONES BEFORE QGEP S FARM-IN 2006 Drilling of 3 wells 1993 Discovery of Oliva 1998 Round Zero 1999 Shell Acquired 40% of BS-4 and the Operation of the Block 2001 Discovery of Atlanta Atlanta s appraisal well Drill Stem Test (DST) at Atlanta Field Declaration of Commerciality of Atlanta and Oliva P. 6
FIELD DEVELOPMENT PLAN (FDP) TIMELINE - ANP AUG/2011 FEB/2012 AUG/2012 Acquisition of 30% participating interest in the Block by QGEP and designation as operator Approval of the transfer of 30% concession rights and operatorship of Block BS-4 to QGEP Revised FDPs for Atlanta and Oliva submitted to the ANP by QGEP FDP HISTORY DEC/2011 JUN/2012 DEC/2012 Presentation Request to the ANP ANP Approval of of Atlanta s for the revisions of Atlanta s revised and Oliva s Atlanta s and Oliva FDP FDPs to the s FDPs ANP P. 7
BS-4 ATLANTA Top of the reservoir Flat Spot Oil/water contact P. 8
Agenda Block BS-4 Early Production System (EPS) Reservoir and Flow System Drilling and Completion Surface Facilities Production and Investments
BRIEF EPS OVERVIEW Goal: Evaluate the significant technical parameters in order to allow a better design of the final project Drill one vertical pilot well to acquire data from the reservoir Drill two horizontal wells for production Performance of Drill Stem Tests Oil and gas production to the Floating Production Storage and Offloading (FPSO) Systems P. 10
EXPECTED EPS SCHEDULE BS-4 Atlanta Drilling and Completion First oil - EPS EPS Production phase Beginning of the Definitive System 2013 2014 2015 2016 2017 2018 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H P. 11
Agenda Block BS-4 Early Production System (EPS) Reservoir and Flow System Drilling and Completion Surface Facilities Production and Investments
FLUID AND ROCK PROPERTIES RESERVOIR DATA Oil Density ~ 14º API GOR ~ 265 ft³/bbl Resevoir: Turbidite Sandstones Temperature ~ 106ºF Water Depth ~ 5,085 ft Thickness ~ 377 ft W C1 C2 E2 Porosity ~ 36% 9-SHEL-19D Permeability ~ 5 D 3-SHEL-20HP Viscosity ~ 228 cp (reservoir) 3-SHEL-8 2300 1-SHEL-4a E1 Non-paraffinic and Nonasphaltenic oil 2 km 2400 overlay OOWC 2404 P. 13
POST-SALT RESERVOIR WITH EXCELLENT AQUIFER P. 14
VOLUMES FOR ATLANTA AND OLIVA FIELDS Field Fluid Volume in place (millions of barrels) Recoverable Volume (millions of barrels) Recovery Factor (%) Atlanta Oil 1,500 260 17% Oliva Oil 350 62 18% P. 15
WELLS TO BE DRILLED AS PART OF THE EPS C2 E2 E1 P. 16
PRODUCTION SCHEME 2 wells with subsea completions (Electrical Submersible Pump (ESP) = 1,500 HP) Gathering system with flexible lines Production to 25,000 bopd FPSO P. 17
Liquid Flow rate (bbl/d) LIFT SYSTEMS PERFORMANCES 20.000 18.000 16.000 14.000 Downhole Bomba dentro ESP do poço Seabed Bomba Leito ESP Marinho Gas Lift Natural Elevação Flow Natural 12.000 10.000 8.000 6.000 4.000 2.000 0 0 5 10 15 20 25 30 35 PI (m³/d /kgf/cm²) P. 18
FLOW ASSURANCE MITIGANTION METHOD Emulsion Hydrates Naphthenates Incrustation Corrosion Erosion Foam Electrical Submersible Pump Shutdown Production Continuous injection of de-emulsifiers Continuous injection of inhibitors Non-alkaline drilling and completion fluids Continuous injection of inhibitors Use of anticorrosive material Gravel Pack Completion Use of defoamer Use of gas lift as backup Fluid displaced by diesel on the lines P. 19
Agenda Block BS-4 Early Production System (EPS) Reservoir and Flow System Drilling and Completion Surface Facilities Production and Investments
RIG DATA: OCEAN STAR SPECS Operator and Owner: Diamond Offshore Type: 4th generation semi submersible Water Depth: 5,500 ft Drilling Depth: 30,000 ft Current contractor: OGX P. 21
ENVIRONMENTAL DRILLING LICENSE Reference Term for the Drilling Environmental Report received on October/2012 Final phase of the Report to be sent to IBAMA in the first quarter of 2013 Issuance of the Drilling License expected for the third quarter of 2013 P. 22
PILOT WELL P. 23
HORIZONTAL WELL COMPLETION P. 24
HORIZONTAL WET CHRISTMAS TREE GENERAL SPECIFICATIONS Tubing Hanger: 4 x 2 Working pressure: 5 kpsi Working temperature: 35 to 250 F Water Depth: 2,000 m (6,561.7 ft) Electric System: Power 8 kv Stack up weight: 67 t (147.709 lbs) Dimension: 5(w) x 3,7(l) x 6,2(h) m P. 25
GATHERING SYSTEM Length per well: 4,000m (2,000m Riser +2,000m Flowline) Total length: 8km (6 ) and 8km(4 ) Maximum working depth: 1,800m Electro-Hydraulic Umbilical Length per well: 4,000m (2,000m Riser +2,000m Flowline) Total length: 8km P. 26
Agenda Block BS-4 Early Production System (EPS) Reservoir and Flow System Drilling and Completion Surface Facilities Production and Investments
SEA BOTTOM LAYOUT Typical P. 28
FPSO SPECIFICATIONS Contract Type: Leasing Expected contract signing Early 2014 Characteristics Minimum liquid capacity: 30,500 bbl/d Minimum oil capacity: 25,000 bbl/d Water treatment capacity: 8,000 bbl/d Gas compression system: 180,000 m³/d Slots for 3 production wells Anchoring: Spread Mooring or Single Point Mooring (Turret) P. 29
Agenda Block BS-4 Early Production System (EPS) Reservoir and Flow System Drilling and Completion Surface Facilities Production and Investments
Flow Rate for Oil Production (kbbl/d) Accumulated Oil Production (Mbbl) EXPECTED OIL PRODUCTION (2 WELLS) 35 30 25 Flow Rate for Oil Production (Upper Limit) Flow Rate for Oil Production (Lower Limit) Accumulated Oil Production (Upper Limit) Accumulated Oil Production (Lower Limit) 35 30 25 20 20 15 15 10 10 5 5 0 0 1 2 3 Time (Years) 0 P. 31
EXPECTED CAPEX ACTIVITIES US$ MM TOTAL 420 TOTAL already contracted 115 TOTAL Net to QGEP 126 CAPEX Composition CAPEX Net to QGEP 9% 1% 10% 11% 69% 45 78 DRILLING FPSO OTHERS Collection System HSE 2013 2014 * Estimating aproximately 280 days of drilling P. 32
CONTRACTS ITEM Horizontal Wet Christmas Tree Well heads and Large Diameter Liner Drill Pipe Riser (DPR) Drilling Services Rig Liners STATUS Signed Contract Signed Contract Signed Contract Negotiated Contract Final Phase of Contract Negotiation Final Phase of Contract Negotiation P. 33
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FOR ADDITIONAL INFORMATION QGEP Participações S.A. Investor Relations Av. Almirante Barroso, nº 52/sala 1,301, Centro, Rio de Janeiro, RJ CEP: 20031-918 Telephone - RI: 55 21 3509-5959 Fax: 55 21 3509-5958 E-mail: ri@qgep.com.br www.qgep.com.br/ri APRESENTAÇÃO QGEP P. 35