Palestrante: Magda Chambriard - Diretora-geral da ANP

1. Brazilian Oil & Gas Sector
Current Scenario and Perspectives
Magda Chambriard
Director-general
BRATECC Offshore 2014 – Breakfast Event
May 7th, 2014

2. ANP role in E&P1
Final comments4
Next steps3
Current scenario & perspectives2
Summary

3. ANP role in E&P1
Final comments4
Next steps3
Current scenario & perspectives2
Summary

4. REGULATING
CONTRACTING
MONITORING
ANP Role
Upstream Sector
Establishing directives, ordinances, resolutions and
normative statements
Promoting bidding rounds and entering into contracts with
petroleum companies on behalf of the Federal Government
Monitoring the activities of regulated industries, directly or
through agreements with other public agencies
ANP is responsible for the implementation of the oil sector policy, in
accordance with Petroleum Law (Law 9478/1997), Gas Law (Law
11909/2009), Ethanol Law (Law 12.490/2011) and Pre-Salt Laws (Laws
12.276/2010, 12.304/2010, 12.351/2010, 12.734/2012)

5. ANP Attributions
• Management of data and information on
sedimentary basins;
• Continuously studying sedimentary basins,
aiming its offering to the bidding rounds;
• Bids acreage for exploration and production;
• Management of concession, production
sharing and onerous assignment contracts.
Upstream
Exploration
Development
Production

6. ANP and PPSA
Pre-salt Law
o The State represented by the public company … and
based on assessments conducted by the ANP will
celebrate with stakeholders the unitization agreement, …
PPSA Law
o PPSA represents the State in the consortium formed for
the implementation of PSA;
o PPSA defends the interests of the State in operational
committees;
o PPSA provides to ANP necessary information for its
regulatory functions; ...

7. One country,
three systems
7.5 million km2
~ 2% of sedimentary areas:
Production Sharing Regime
1st Pre-salt Bidding Round
All other areas:
Concession Regime
12th Round
Onerous assignment:
6 blocks
Lula
Libra
Libra
Round 12 (blocks already auctioned/contracts not yet signed)

8. ANP role in E&P1
Final comments4
Next steps3
Current scenario & perspectives2
Summary

9. Current scenario
and perspectives
Proven Reserves
Oil – ~15.6 billion bbl
Gas – ~458 billion m3
Near future: x2
Production
Oil and NGL – 2 million bbl/day
Gas – 77.2 million m3/day
Near future: x2 *
* Considering discoveries already made,
mainly in the pre-salt area
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Future
Proven Reserves (B boe)
Petroleum Natural Gas
Imports/Exports Balance
Oil – 405 / 381 thousand bbl/day
Gas – 45.2 million m3/day
Forecast
2022

10. Evolution of area
in production phase
* At the end of each year.
IEA: Since the 1980s, the waters of Brazil’s Atlantic Coast have
become one of the leading areas of interest worldwide for oil
and gas exploration.

11. Evolution of area
granted for exploration
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
400.000
450.000
500.000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Area in Exploration Phase*(km²)
* In the end of each year; shaded area for 2013 considers Bid 12 results.
The last three bidding rounds meant more than 100 thousand km2
of new areas conducting exploration activities
≈ 5.5% of total
sedimentary
basins area

12. 2013 Bidding Rounds
results
In 2013, 100,000 km2 included in the
exploratory scenario, as opportunities
for all sizes of petroleum companies
Contracted areas in 17 states and 15
basins
Northern coast:
Acreage contracted in five (5) new
frontier basins

13. 3 bidding rounds
78 companies qualified
37 winning companies/consortia
Signature Bonus: R$ 17.6 billion (≈ US$ 7.7 billion)
Minimum Working Program: R$ 6.9 billion (≈ US$ 3
billion)
Local Content: 37% - 72% in Exploration Phase
55% - 84% in Development Phase
Undoubtedly, Brazil attracted the attention of companies and
investors in the E&P sector in 2013.
2013 Bidding Rounds
results

14. Pre-Salt investments
Libra prospect
From 12 to 18 platforms
From 60 to 90 supply boats
Infrastructure investments:
At least US$ 65 billions
Production peak:
up to 1,4 million bbl/d (?)
Libra
Lula
Búzios
Sapinhoá
Uruguá
Mexilhão
Baúna
Merluza
Route3
Lapa
Onerous assignment

15. ANP role in E&P1
Final comments4
Next steps3
Current scenario & perspectives2
Summary

16. New exploration
opportunities
The potential of Brazil goes far beyond
the completed rounds.
ANP is consolidating results, reanalyzing
areas and collecting information from
various sources, in order to identify new
opportunities. Focus on Brazilian Eastern
Margin.

17. New exploration
opportunities
Example of pre-salt potential – Pau Brasil area
ANP is consolidating results,
reanalyzing areas and collecting
information from various sources,
in order to identify new
opportunities.
Pau Brasil prospect
• Area ~ 320 km2
• Thickness ~ up to 450 m (?)

18. ANP role in E&P1
Final comments4
Next steps3
Current scenario & perspectives2
Summary

19. Brazil's plans to double production and reserves are
underway;
Brazilian projects will represent huge investments for
many years;
Several onshore and offshore areas, contracted in 2013,
shall result in even more exploratory investments;
In 2014, ANP studies focus the eastern margin;
Final comments
In Brazil, exploratory opportunities go far beyond pre-salt.

20. National Agency of Petroleum, Natural Gas and Biofuels – ANP
Av. Rio Branco, 65 – Centro – Rio de Janeiro – Brasil
12º to 22º andar
Phone: +55 (21) 2112-8100
www.anp.gov.br