Outline
3
2
Brazil’s Current State1
4
Onshore’s Current State and Prospectivity
Open Acreage Process
Conclusions
Brazil’s Current State
Area under concession~ 295,000 km2
350 Blocks
392 fields
97 companies
Production(May, 2018)
Oil 2.6 million bbl/dNatural Gas 112 million m3/d
Proven Reserves(Dec, 2017)
Oil 12.8 billion barrelsNatural Gas 370 billion m3
10th largest oil producer in the world and the largest in Latin America
Onshore’s Current State
Onshore New Frontier BasinsArea under concession:
~ 170,000 km2
81 Blocks and 23 fieldsOil production: ~16 thousand bbl/d
Natural gas: ~ 17.6 million m3/d
Onshore Mature BasinsArea under concession
~ 8,500 km2
122 Blocks and 279 fieldsOil Production: ~92 thousand bbl/d
Natural gas: ~ 3.7 million m3/d
Onshore New Frontier Basins
Parnaiba
Parana
SaoFrancisco
Parecis
Amazonas
Solimoes
Solimoes and Parnaiba are the only new frontier producing basins in Brazil
Acre, Amazonas, Parana, Parecis and Sao
Francisco are gas prone basinsNo wells have been drilled in Madre de Dios
Basin
Parnaiba Basin
GaviaoPreto
Gaviao Caboclo Gaviao Branco Norte
GaviaoBranco
Gaviao Vermelho
Gaviao Azul
Gaviao Real
Natural Gas Production:
~6.1 million m3/day (jan/2018)
Area under concession
~76,200 km2
Onshore Mature Basins
Reconcavo, Potiguar,
Sergipe-Alagoas and Espirito Santo
- Advanced exploration stage
- Oil & Gas Infrastructure available
- Excellent opportunity for small and medium-sized
companies
- Recent discoveries
- Remaining Potential
Potiguar
Sergipe-Alagoas
Espirito Santo
Reconcavo
Onshore’s Current State
Goal: maximizing production and recovery
OilGas
108Thousand bbl/d
21Million m³/d
49%
Exploration wells 84%
0
50.000
100.000
150.000
200.000
250.000
Onshore Oil Production
0
20
40
60
80
100
120
140
2012 2013 2014 2015 2016 2017 2018
Energy Police & Regulatory Improvements
- REATE (Revitalization Program for Oil and
Natural Gas Exploration and Production in
Onshore Areas)
- Royalties reduction for onshore basins
- Royalties reduction for the incremental
production in mature fields
- New Local Content Policy
- Open Acreage
Open Acreage
Continuous offer of blocks and mature fields.
Companies can bid on blocks not sold in previous auctions.
Applications can be submitted anytime and not just at designated points.
It gives more flexibility to the industry and it will promote exploration activity in onshore areas where there are more small and medium size companies.
Milestones
November April
2017 2018
1st Wave areas disclosure
• Technical and economic parameters disclosure
• Registration to Open Acreage begins
May July
Tender Protocol and Contract Publications and beginning of the enrolment
148 blocks are available to bid on
September
• 10 blocks were included in the 1st stage of 1st Wave
• CNPE proposed the inclusion of areas within the Pre-salt Polygon in the Open Acreage under production sharing regime
• CNPE approves all onshore blocks in Open Acreage.
20191st Semester
2nd Wave areas disclosure
2nd Wave Technical and economic parameters
disclosure
1st Wave
Area346,035 km²
14Mature
Fields
15Sedimentary
Basins
884Blocks
722 blocks in 9 onshore basins
162 blocks in 6 offshore basins
1st Stage – 1st Wave
Marginal fields
Reconcavo Basin Potiguar Basin Espirito Santo Basin Sergipe-Alagoas Basin
http://rodadas.anp.gov.br/pt/oferta-permanente/areas-com-acumulacoes-marginais
2nd Wave
1,054Blocks
85 blocks in 7 onshore basins
969 blocks in 3 offshore basins
Technical and economic parameters are under
evaluation
Area 441,400 km²
20Sedimentary
Basins
Geological & Geophysical Program
ANP has invested R$ 1.5 billion in Geological and Geophysical
data acquisition
2007-2018
Conclusions
The Brazilian Government and ANP have been working hard to attract more investments and promote exploration activities in onshore basins.
The Open Acreage process represents one of the most important mechanism to leverage exploration activities in the onshore basins.
Open Acreage aims to make the oil sector more dynamic and to increase
exploration and production activities in the Country.