18 09-2008 josé miranda formigli filho na rio oil and gas expo conference no rio de janeiro...
TRANSCRIPT
Agenda
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 ofoperations 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.
Agenda
PLANSAL Planning and GovernancePLANSAL Planning and Governance
Economical and Logistics ChallengesEconomical and Logistics Challenges
Technological ChallengesTechnological Challenges
Santos Basin PreSantos Basin Pre--Salt Development StrategySalt Development Strategy
Introduction Introduction -- PrePre--SaltSalt
ConclusionConclusion
Commercial StrategiesCommercial Strategies
Agenda
PLANSAL Planning and GovernancePLANSAL Planning and Governance
Economical and Logistics ChallengesEconomical and Logistics Challenges
Technological ChallengesTechnological Challenges
Santos Basin PreSantos Basin Pre--Salt Development StrategySalt Development Strategy
Introduction Introduction -- PrePre--SaltSalt
ConclusionConclusion
Commercial StrategiesCommercial Strategies
Inter tidal and Sub tidal stromatolites – Australia – recent sedimentation
It was like this approximately 120 million years ago
Recent Stromatolites - Lagoa Salgada, RJ
Pre-Salt – Reservoirs
Pre-Salt Province
Disc Intra-Rift
Top of the Rift
Base of the Salt
Top of the Salt
Top of the Albian Top of the KSea bed
5 10 15 20 km0
Basement
WE
Seismic Line / Geological Section -Santos Basin
10
Some Location Details
Evaluation Plansapproved by ANP
Parati – 1-RJS-617Tupi – 1-RJS-628Carioca – 1-SPS-50Caramba – 1-SPS-51Guará – 1-SPS-55
Evaluation Plans beingprepared/under negotiation
Bem-Te-Vi – 1-SPS-52Júpiter – 1-RJS-652Iara – 1-RJS-656
General Data - Tupi Area
Petrobras (65%), BG (25%), Petrogal (10%)
Heterogeneous layered carbonates – microbiolateswith variable reservoir quality
Water Depth about 2,200 m
Salt layers with thickness –up to 2,000 m
Well tests indicate potential flow rates of 15-20 k bopd
API: 28-30º
Tupi Area
Oil viscosity around 1 cP
GOR around 230 m3/m3
Initial pressure 580 kgf/cm2
Low TAN (Total Acid Number)
CO2 in the associated gas (Tupi: 8 - 12%)
Concern with flow assurance due to wax deposition in pipes
BM-S-11(TUPI)
Pólo
Área: 378 Km2
PA do RJS-628
10 km
Pólo
Área: 378 Km2
PA do RJS-628
10 km
General Data - Tupi Area
Selected Area for the Pilot: 115 km2
Area of the Appraisal Plan: 1974 km2
The main reservoir in the Pre-Salt is known as the SAG reservoir.
Two other carbonate reservoirs are found in the area (RIFT, COQUINAS).
The preliminary estimates for the recoverable volume for the whole Tupi area are between 5 and 8 billion bbl
Tupi Area
General Data - Iara
•Petrobras (65%), BG (25%), Petrogal (10%)
•Area of the Appraisal Plan: 300 km2
•The preliminary estimates for the recoverable volume for Iara area are between 3and 4 billion bbl
•Water Depth about 2,230 m
• Reservoir Depth about 6,080 m
• API: 26-30º
Iara Area
Agenda
PLANSAL Planning and GovernancePLANSAL Planning and Governance
Economical and Logistics ChallengesEconomical and Logistics Challenges
Technological ChallengesTechnological Challenges
Santos Basin PreSantos Basin Pre--Salt Development StrategySalt Development Strategy
Introduction Introduction -- PrePre--SaltSalt
ConclusionConclusion
Commercial StrategiesCommercial Strategies
Development Strategy (Ex: Tupi)
20072007 ..........20122012 tt..........20092009
1st Oil – EWT Tupi (Mar/09)
20102010
1st Oil – Tupi Pilot(Dec/10)
20172017
Information Acquisition Definitive Development
Phase 0
EWT (Mar/2009), Tupi Pilot andAppraisal Wells
• Area Delimitation
• Analyse reservatoir flow
• Fractured Well performance
• Complete sampled core
• Material analysis X CO2
Phase 1A Phase 1B
Implementation of “X” production units(Replicant FPSOs)
• Implementation of “Y” production units.
• Analyse water and gas/CO2 injection behavior
• Test adjustments on FPU related to CO2
• Test improvements in well projects
• Apply previous dominated concepts and technologies with necessary adjustments to reach a significant production by 2017
• Aggregate inovative technical solutions to optimize project performance
Focu
sO
bjec
tive
Phases
Significantproduction level
Development Strategy by Phases
Phase 0: Information Acquisition: Appraisal Wells + EWT Tupi + 7 EWTs in other areas + Tupi&2Anticipated Pilots
Phase 1 – Definitive Development
Phase 1a – 8 FPSOs + Gas Transp.1a + Oil Transp.1a + Infra + Oil Utilization1a + Gas Commercialization 1a
Phase 1b – “N” FPUs + Gas Transp.1b + Oil Transp.1b + Oil Utilization1b + Gas Commercialization
Phase 0: Information Acquisition
Phase 1: Definitive Development
Dec
Nov
Apr
Dec
Dec
Oil Utilization
Infra - Logistics
Oil Transportation
Gas Transportation
Gas Commercialization
BMS – 24 Jupiter
BMS – 11 Iara
BMS – 8 Bem-Te-Vi
BMS – 21 Caramba
BMS – 9 Guará
BMS – 10 Parati
BMS – 9 Carioca
BMS – 11 Tupi
Programs
Phases Significantproduction level
Production Design
DRILLWELL P1
LDA: 2200m
PHASE 1WELL 3-RJS-646
6 MONTHS
6 “ PRODUCTION4” SERVICE
EHU6“ PRODUCTION
4” SERVICEEHU
PHASE 3WELL 3-RJS-646
3 MONTHSLINE
RELOCATION
PHASE 2WELL P1
6 MONTHS
• 2 Well Production: 3-RJS-646 and P1• Expected Flow: 14.000 bpd• Test Duration: 15 months
FPSO BW Cidade de São Vicente
1st Oil: March/2009
N
ReservoirReservoir
Production Pilot5 producers; 2 water injectors; 1 gas injectorConnected to a Spread Mooring FPSOProduction start-up scheduled for December, 2010. CO2 will be separatedand reinjected in the reservoir. Gas willflow to Mexilhão (shallow water gasfield, through a 200 km gas pipeline), Capacities:100,000 bopd and 4MMm3/day (gas)Main goal: investigate recovery mechanisms and well geometries.
Pilot Project Scope
LEGEND
PIPELINE
WATER
OILGAS INJECTION
UTGCAUGN
RPBC
TEFRAN
Tupi Area
URG
PMXL
PMLZ-1
170 Km
216 Km
212 Km
145 Km
Solution for the Pilot
Under studyExisting
Building
Gas exportation for the Tupi Pilot
Agenda
PLANSAL Planning and GovernancePLANSAL Planning and Governance
Economical and Logistics ChallengesEconomical and Logistics Challenges
Technological ChallengesTechnological Challenges
Santos Basin PreSantos Basin Pre--Salt Development StrategySalt Development Strategy
Introduction Introduction -- PrePre--SaltSalt
ConclusionConclusion
Commercial StrategiesCommercial Strategies
Reservoir Characterization and EngineeringFacies 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.
Technological challenges
Salt drilling
Sea bed
Evaporitic session
Well Drilling and CompletionDeviation of the wells into the salt zone. Hydraulic fracture in horizontal wells.Wellbore materials, resistant to high CO2 content.Slow penetration in the reservoir.Extended Reach Wells.
Technological challenges
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 flowlinesfor water depths of 2,200 m.Flowlines for high pressure gas injection
Technological challenges
Flow Assurance and Artificial LiftPreventing hydrate formation Wax deposition in long pipelines.Scaling controlTemperature management along the lines
Technological challenges
Floating Production Units
Mooring in water depths of 2,200 m
Interaction with the riser’s system
Scenario for platforms with direct access to the wells (SPAR, FPDSO).
Technological challenges
Logistics for the Associated GasMore suitable materials for equipment dealing with high CO2 concentration gas streams. 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
TECHNOLOGY PROGRAM ON NEW EXPLORATORY
FRONTIERS
PROPES
PROSAL
Petrobras Technological CorporatePrograms
137 Laboratories30 Pilot Plants
CENPESObjective:Develop and disseminate technologies to incorporate reserves and to develop the production of the recent discoveries in the pre-salt section.
Projects’ Portfolio:
Well construction for the pre-salt section (drilling fluids, cement resistance, stimulation techniques, geomechanical model, liner drilling, well control in the salt zone, multilaterals).
Geosciences (chemical stratigraphy, core-log-test integration, geomechanical model and fracture distribution, pre-salt imaging, seismic attributes)
Reservoir Engineering: Recovery optimization
PRO-SAL - Pre-Salt Technological Program
Agenda
PLANSAL Planning and GovernancePLANSAL Planning and Governance
Economical and Logistics ChallengesEconomical and Logistics Challenges
Technological ChallengesTechnological Challenges
Santos Basin PreSantos Basin Pre--Salt Development StrategySalt Development Strategy
Introduction Introduction -- PrePre--SaltSalt
ConclusionConclusion
Commercial StrategiesCommercial Strategies
Logistics – Petrobras strategy
Implemented culture for running fast track projects: Golfinho FPSOs, Plangas FPSOs, Roncador 1st DP FPSO, … ;Long run standardization program for most well design/ related equipment, as well as subsea hardware (wellheads, subsea trees, flexible lines, …);Extending this strategy to FPU design; ex: Opportunity FPSOs, FPSO “Flex”;Established “batch orders” with key suppliers for long lead items.Mobilized fleet + current negotiations with contractors for rigs, laying vessels, anchor handlers, … ;Established long term contracts with Service Companies.Interacting with the market for gas transportation to shore through alternative solutions in relation to traditional trunk line (LNG, CNG, GTW,…);Negotiations with partners for project’s scope and budget approvals.
Economic Challenges
CAPEX DISTRIBUTION
18%
19%
31%
9%
20%
2%0%1%
Residual Value Processing Plants Exportation GatheringFPU Completion Drilling Abandonment
Surf
Agenda
PLANSAL Planning and GovernancePLANSAL Planning and Governance
Economical and Logistics ChallengesEconomical and Logistics Challenges
Technological ChallengesTechnological Challenges
Santos Basin PreSantos Basin Pre--Salt Development StrategySalt Development Strategy
Introduction Introduction -- PrePre--SaltSalt
ConclusionConclusion
Commercial StrategiesCommercial Strategies
PLANSALPLANSAL
The Effort x Time analysis shows that the initial main focus of PLANSAL is strategy definition followed by project implementation phase.
Cluster Strategic Plan and IntegratedDevelopment Model
(Pre-Salt Committee)
Project Implementation(Areas)
Effort
Time
Guidelines
Projects
Programs
2009Pre-Release ofMaster Plan
> 2020Periodic Reviews
Petrobras Approach for Pre-Salt Development (Internal Process)
Gas Transfer, Processing,
Transportationand
CommercializationSubprogram
Gas Transfer, Processing,
Transportationand
CommercializationSubprogram
Oil Transfer, Transportationand Utilization
Oil Transfer, Transportationand Utilization
ProductionInfrastructureSubprogram
ProductionInfrastructureSubprogram
Exploration SubprogramExploration Subprogram
Prog
ram
Plan
ning
, Mon
itorin
gan
dM
anag
emen
tPr
ogra
mPl
anni
ng, M
onito
ring
and
Man
agem
ent
ProductionDevelopmentSubprogram
ProductionDevelopmentSubprogram
Environmental Licensing Plan
Human Resources Plan
Unitization Plan
• Logistics
Critical Resources Availability Plan
Technology Development Plan
Joint Ventures Management Plan
• Oil Transportation andUtilization
• Gas Transportation andMarketing
• Transportation • Oil Transportation– E&P • Gas Transportation – E&P
• CO2 use• Use and storage of gas
• Reservoir Drainage• Concepts of Floating Production Units
• Equipments and Drilling Services, Logistic, Wells and Submarine• Equipments and Services for Pipelines, Floating Productions Units and Facilities
PLANSAL Structure
Agenda
PLANSAL Planning and GovernancePLANSAL Planning and Governance
Economical and Logistics ChallengesEconomical and Logistics Challenges
Technological ChallengesTechnological Challenges
Santos Basin PreSantos Basin Pre--Salt Development StrategySalt Development Strategy
Introduction Introduction -- PrePre--SaltSalt
ConclusionConclusion
Commercial StrategiesCommercial Strategies
National Content Demand;
Resources Competition with local shipbuilding industry;
Large offshore platforms demand on short-term schedule;
Significant capacity increment of national marine/offshore construction sites.
Production Platforms Scenario
New infrastructure for building Production Platforms in Rio Grande City – RS.
Production Platforms Construction Strategy
Field tested technology for FPSO hull construction;
Standardization of FPSO hull, including all marine systems, facilities and accommodations;
FPSO hulls construction made by large experienced companies;
New hull building cost similar to converted hull’s cost due to scale effect
Standardization of FPSO´s Top sides whenever possible;
Sequence of 8 FPSO units
Production Platforms Construction Strategy
Basic project developed by Petrobras/CENPES;
Supply – critical items acquired by Petrobras, other items acquired byEPC Contracts;
Modules manufacturing in existing construction sites or to beprepared with low investiment;
Number of module contracts depends on plant configuration and facilities (waiting for EWT data);
Two or three big contracts for “Integration and commissioning”, under analysis.
Production Platforms Construction Strategy
Pipe manufacturer market highly committed;
Few number of suitable pipeline lay down vessels available in International Market;
Ultra deep water depth sites;
Irregular seabed pipeline routes;
Due to the water depth, it is recommended to use high strength steelpipe (API 5L X70/80). National industry is getting prepared to supply this kind of material.
Subsea Rigid Pipelines Scenario
Pipeline lay down Vessel availability:
Anticipate slot acquisition of new and existing vessels;
Construction of a new vessel in Joint venture with a experiencedOperator
EPCI Contracting Philosophy;
Combination of above strategies;
Subsea Rigid Pipelines Implementation Strategy
Drilling Rigs Contract Strategy (28 units)
Significant number (25) of drilling rigs under construction to be received until 2012;
Construction of new units, specifically in Brazil, to be delivered from 2014 and on (in analysis);
Hiring of extra existing units in global market, if necessary.
New Rig demands after 2013
Defining minimum necessary technical characteristics for development of new pre-salt fields;
Evaluating projects of drill units that better attend these requirements;
Evaluating the infra-structrure installed capacity;
Studying hiring strategies that makes feasibly the extremellysignificant investiments on competitive bases with internationalmarket.
Logistics Contract Strategy
146 Vessels (PSV – Platform Supply Vessel, AHTS – Anchor Handling Tug Supply, and LH – Line Handling) and Helicopters:
Operation is pool regime;
Bids in advance that allows the constructionVessels constructed in Brazil;
Contract of existing units, if necessary
Subsea Equipments and Laying VesselsContract Strategy
Subsea Equipment:
Long Term Contracts, with:minimum consumption guarantee;standard products;antecedence that allows investments in industrial enlargement and/or new companies entry in Brazil.
Vessels (PLSV):
Long Term Contracts, with:Additional units for Pre-Salt (increase actual fleet); Traditional suppliers will be invited for bids;Anticipation that allows the construction.
Well Equipments and Services
Well Equipments:
Long Term Contracts, with:minimum consumption guaranteetraditional suppliers will be invited to tenderantecedence that allows investments in industrial enlargement and/or new companies establishing in Brazil.
Well Services:
Long Term Contracts, with:anticipation that allows investments;Scale effect for rising competition.
Agenda
PLANSAL Planning and GovernancePLANSAL Planning and Governance
Economical and Logistics ChallengesEconomical and Logistics Challenges
Technological ChallengesTechnological Challenges
Santos Basin PreSantos Basin Pre--Salt Development StrategySalt Development Strategy
Introduction Introduction -- PrePre--SaltSalt
ConclusionConclusion
Commercial StrategiesCommercial Strategies
Conclusion
• Petrobras has a worldwide recognized deepwater experience to address technical and comercial challenges for Pre-salt appraisal anddevelopment
• A new paradigm will be established for conceptual design applied to Santos Basin Pre-salt cluster production development and logisticalsupport
• There are tremendous opportunities for already installed andnewcomers in Brazilian oil&gas equipment suppliers and servicecompanies due to the scale provide by upstream portfolio
• Pre-salt will start commercial production in 2010, with a steep ramp-up on the following years, reaching a significant contribution to Petrobras oil and gas production throughout next decade, as will beannounced by next revision of our Strategic Plan.
Question and Answer SessionVisit our website: www.petrobras.com.br/ri
For more information contact:Petróleo Brasileiro S.A - PETROBRASInvestor Relations Department
E-mail: [email protected]. República do Chile, 65 – 22º floor20031 912 – Rio de Janeiro, RJ(55-21) 3224 1510 / 3224 9947
Thank you!