PETROBRAS Brazilian Oil and Gas Exploration & Production Challenges and Opportunities IBSEN FLORES LIMA June/2011 Seoul, Korea 1
Petrobras 2010 United Kingdom Mexico USA Colombia Equador Peru New York Houston Venezuela BRASIL Portugal Turkey Jordan Libia Iran Pakistan Senegal Nigeria India Tanzania Angola Mozambique Singapure Beijing Tokio Okinawa Bolivia Rio de Janeiro Paraguay Uruguay Argentina Head Office Representative Offices Downstream Trading Upstream Cluster blocks 2
Petrobras Overview*: An integrated oil major Proven Reserves : 16 billion boe (SPE) Average O&G Production: 2.3 million boed - Oil: 2.0 million bpd - Gas: 0.3 million boed Total Investments - 2010-2014: US$ 224.1 billion Producing Wells: - Onshore: 14,115 - Offshore: 790 Net Operating Revenues: US$ 91.9 billion Refineries: 15 - Installed Capacity: 2.223 million bpd - Output of Oil Products: 2.034 million bpd Terminals: 47 - Storage capacity: 10 million m³ Vessels - Own fleet: 52 - Chartered: 120 Pipelines : 29,398 km Service stations - Brazil: 5,998 - Abroad: 1,223 Producing Platforms - Fixed: 86 - Floating: 47 Power Plants - Thermoelectric: 18 - Installed Capacity : 6,136 MW Drilling Rigs (domestic) - Onshore: 34 - Offshore: 53 Fertilizer Plants: 2 Natural Gas Sales: 37 million m 3 /d LNG Terminals - Pecém: 7 million m 3 /d - Rio de Janeiro: 14 million m 3 /d *As of Nov/2010 3
Our exploratory activities in Brazilian sedimentary basins have uncovered a huge hydrocarbons potential Paleozoic basins Light oil condensate & natural gas Equatorial margin basins (frontier) High risks & high rewards Natural gas & light oil Eastern/Northeastern margin basins Light oil & natural gas Recent offshore discoveries Internal basins Initial stages of exploration Espirito Santo, Campos & Santos Basins Search for new producible heavy oil discoveries Search for light oil & natural gas discoveries Pre-Salt Section Carbonates 4
Our recent past is unique within the industry... kboe/d 2.500 Oil & Gas Production - CAGR = 4,5% Proven Reserves - CAGR = 5,2% bln boe 16 2.000 1.500 1.000 12 8 500 4 0 2001 2004 2007 2010 0 39% 50% 55% 49% 59% 44% 40% 57% 23% Exploratory success 2002 2003 2004 2005 2006 2007 2008 2009 2010 6
...our oil production growth forecast is remarkable... 3.950 2.980 2.100 2011 2014 2020 7
and this growth is based on a high quality set of production development projects. 8 Canapu EWT Guará Dynamic Producer Lula pilot system Cidade de Angra dos Reis Cachalote e Baleia Franca FPSO Capixaba Jubarte FPSO P-57 EWT Tiro SS-11 Uruguá/Tambaú FPSO Cidade de Santos EWT Carimbé P-48 23 production systems by 2014 and 36 more between 2015 and 2020 6 Mexilhão Marlim Sul P-56 Module 3 EWT Aruanã Cidade Rio das Ostras EWT Lula NE EWT Cernambi EWT Carioca NE Juruá/Araracanga Baleia Azul FPSO Cid. de Anchieta Roncador P-55 Module 3 Tiro/Sidon Aruanã 4 EWT Pre-salt Guará pilot system Lula NE pilot system Roncador P-62 Module 4 Papa-Terra P-61 & P-63 3 EWT Pre-salt Guará Norte Cernambi Parque das Baleias FPSO P-58 Guaiamá FPSO 2 EWT Pre-salt 2010 2011 2012 2013 2014 8
Our 2010-2014 E&P CAPEX program is one of the largest in the oil industry Pre-Salt US$ 33.0 Billion Post-Salt US$ 75.2 Billion 3% 13% 15% 18% 0.9 4.3 11.4 13.7 27.8 50.1 84% 67% Exploration Production development Infrastructure E&P budget for 2011 is R$ 42,3 billion Over 2/3 of this budget will be spent in Brazil 9
we have a dominant position in the demand side for offshore rigs World Brazil 9% 53% 47% 91% Petrobras Other Operators Petrobras Other Operators * Semi-submersibles and drilling ships 10
and we have a firm demand for several critical resources that is not yet contracted Critical Resources Delivery Plan - Accumulated Value By 2013 By 2015 By 2020 Drilling Rigs Water Depth Above 2.000 m 26 31 53* Supply and Special Vessel 465 491 504 Production Platforms SS e FPSO 53 63 84 Others (Jacket and TLWP) 81 83 85 Supply Vessel Drilling Rigs Production Platform (FPSO) 11
and the same applies to equipments Item Un. TOTAL Wet Christmas Trees un 484 Subsea Well heads un 359 Flexible Flow lines km 2,851 Manifolds un 42 Production Pipes and Casings t 597,052 Umbilicals km 1,861 Dry Christmas Trees un 1,387 Reactors un 244 Oil/Water Separators un 97 Storage Tanks un 1,020 Onshore Well heads un 1,404 Item Un. TOTAL Pumps un 7,004 Compressors un 429 Whinches un 62 Cranes un 92 Combustion Engines un 720 Turbines un 835 Generators un 618 Filters un 2,141 Flares un 69 Towers un 391 Structural Steel t 1,521,450 Estimated values for the period 2011-2014 12
with a special highlight to onshore activities. Production Equipments Pressure Measuring and Control Instruments Generators and Electric Motors Downhole Pumps, Pumping Units and Accessories Cementing Equipments Well Fishing Tools High Pressure Gas Compressors Turbo Expanders Flex Tubes for Petroleum production Flexible Flutuable Tanks for Oil Storage Nutshell filters Drills and Christmas Trees Process Chromatographs Flow Measures Electric Generators With Gas BSW Analisers Well gas compressors Drilling and workover rigs Well equipments Blow Out Preventers and BOP handling machines Crown blocks, Masts, Rotary tables, Travelling blocks and Swivels Substructures, Hydraulic and Manual Tongs, Top drives, Pipe handling machines Rig carriers and Slickline units Cementing, Logging, and Pumping Unit trucks Drill pipes and workover strings (drill collars, heavy weight drill pipes and casings) Drill string elements and accessories Well fishing tools in general Motors in general (electric AC and DC, and internal combustion of all range) Generators in general Pumps in general (centrifugal and alternative - all range of HHP) Electronic Drilling Recorders (EDR) Auto drillers Hydraulic couplings Choke manifolds 13
On the engineering and supply chain sides we ENGINEERING have a clear framework CHALLENGES Competitiveness/ Sustainability Using international engineering patterns and metrics in our facility projects Simplification and Standardization Reduction in the complexity of the projects, using standard solutions Technology & Engineering Drivers Brazilian Content Contributing for the consolidation of Brazil as a supplying hub with international competitive level 14
and Petrobras has crafted a program to help replicating this success Strategies Examples Local content requirements in contracts Platforms Rigs Refineries Ships (PROMEF) Vessels (PSV, AHTS, ORSV) Long term contracts New plants in Brazil Shipyards Offshore cranes Pumping units Pumps and valves Expansions Umbilical Wet xmas tree Pressure vases. Cooperation agreements to develop new products and technologies Oil-water subsea separation Umbilical, Special xmas tree (BCS) Cooperation agreements for imports substitution Lifeboats Steam turbine Flexible pipes - monitoring 15
in which local content plays a very important role. Platforms Procurement Under Construction: P-55: Estaleiro Atlântico Sul PE (hull) /QUIP- RS (modules) Recently built platform: P-57: BrasFels RJ Capacity: 180 thous. boe/day Value: US$ 1,2 billion Delivered two months ahead ofschedule Under Construction: P-63: QUIP (RS) Under Construction: P-56 and P-61: Brasfels (RJ) P-62: Jurong (ES) FPSO Cidade de Paraty: Brasfels (RJ) FPSO Cidade de São Paulo: Brasfels (RJ) 8 FPSOs (Pre-salt): Ecovix Rio Grande (RS) P-58: Estaleiro Rio Grande RS, UTC Engenharia S/A RJ e EBE RJ. o o o 7 production platforms and 8 hulls under construction; P-57 was delivered in 32 months, two months ahead of schedule and under competitive costs as compared to international prices. Reduction in construction time and cost; Inclusion of 900 new suppliers per year in Petrobras' Corporate Vendor List; o 13 new shipyards currently under construction, raising the total number to 50*; o Index of local content rose from 57% in 2003 to 74% in 2010. *Source: Sinaval Executive Summary -2011, Jan. 16
THANK YOU 17 17