1. Oil & Gas Clipping
New well confirms the potential of Sergipe-Alagoas Basin
Petrobras informed that it has identified the existence of gas during the drilling of a well in the area of Poço Verde, of the concession BM-SEAL-4, in ultra deep waters of Sergipe-Alagoas Basin.
According to Petrobras, the new well, informally known as Poço Verde 1, located 58 km of Aracaju coast, confirms the basin’s potential.
The company says that the reservoirs are in good porosity condition and confirms the expectation of the project.
The consortium comprised by Petrobras, which holds 75% of the equity, in partnership with the Indian company ONGC, which holds 25%, will continue activities foreseen for the area.
http://americaeconomiabrasil.com.br/negocios-e-industrias/petrobras- diz-que-novo-poco-confirma-potencial-na-bacia-de-sergipe-alagoas
BNDES foresees investment of R$ 381 bi (US$ 155 bi) in oil and gas sector in Brazil between 2015 and 2017
According to the director of economic planning, research and risk management department of BNDES (the Brazilian Development Bank), João Carlos Ferraz, the investment in oil and gas sector might grow 46% in Brazil between 2015 and 2017, compared to 2011 and 2013, to 381 billion Reais (US$ 155bi).
According to the director, the investments in oil and gas during the next 2 years will represent 12% to 14% of the Gross Fixed Capital Formation.

2. BNDES will prioritise investments directed to technology innovation and development.
http://americaeconomiabrasil.com.br/negocios-e-industrias/bndes-preve- investimentos-de-r381-bi-no-setor-de-petroleo-e-gas-do-brasil-de-2
Brazil is confident that new oil rules will protect current rights
The Brazilian regulatory authorities informed that new regulations will assure rights related to Law 12,351 of 22 December 2010 which amended the Oil Law and introduced the production sharing agreement regime (PSA) for exploration and production of oil and gas in Brazil).
The rules, known as Resolution ANP 25, are the recent efforts to fix problems and uncertainties caused by the new Law.
According to the attorney of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), Thiago Macedo, the government is not interested in removing rights from operators of oil and gas concessions.
The problems started with the legal requirement set forth in Law 12351/10 that Petrobras must have at least 30% in the venture and act as operator in pre-salt area projects. Also, the Law requires that neighbouring exploration areas which share a common reservoir must be operated by a sole unity and operator, known as “unitisation”. Therefore, Petrobras was thought to be assuming control of any new area subject to unitisation.
The Resolution does not forbid Brazil to grant rights to Petrobras to operate existing fields, but allows existing operators to continue operating oil reservoirs extended to areas which were not awarded through bidding, subject to the new Law. According to such interpretation, the government would be the minority shareholder while the control would be hold by existing operators.
http://americaeconomiabrasil.com.br/negocios-e-industrias/brasil-esta- confiante-de-que-novas-regras-do-petroleo-protegerao-direitos-atua

3. 13th Bidding Round of ANP will take place in the first semester of 2015
The secretary of oil, gas and renewable fuels of the Mining and Energy Ministry, Marco Antônio de Almeida, said that ANP will promote the 13th Bidding Round of Exploration Blocks in the first semester of next year.
The secretary also informed that the gas pipelines will be accessible within five years to agents interested in transporting gas. Such change was possible after the Gas Law (Law 11.909 of 4 March 2009) which allows third parties to transport via gas pipelines observed the period established by the Mining and Energy Ministry. Currently, gas pipelines are allowed to be used only by companies that built them.
http://www.portosenavios.com.br/industria-naval-e-offshore/26055- mme-13-rodada-de-licitacoes-da-anp-sera-no-primeiro-semestre-de-2015
Oil Production in Brazil will double by 2023
According to the Energy Research Company (Empresa de Pesquisa Energética - EPE), the oil production in Brazil will reach 5 million barrels per day until 2023, where 2/3 shall be extracted from pre-salt area.
The oil production in Brazil would double in relation to volumes produced in July (around 2.2 million bpd) as per ANP’s data.
Also, EPE released the decennial energy plan and foresees that demand for oil in Brazil in 2023 will reach 3.5 million bpd with exceeding 1.5 million bpd to be exported.
http://br.reuters.com/article/businessNews/idBRKBN0H52HH20140910
Shell has ANP’s approval for new plan in Bijupirá and Salema, in the Campos Basin
Shell obtained approval from ANP for a new development plan in the Bijupirá and Salema fields, located in the Campos Basin and the first ones in Brazil to be operated by a foreign company at a commercial level.

4. The company did a redevelopment work in the fields in order to reduce the impact of exploration, in view of the fact that the fields are in production since 2003.
Shell holds 80% of the consortium with Petrobras. Both fields produce around 28 thousand bpd according to Shell. Such volume is equivalent to approximately 30% of the production of all fields operated by Shell in the country.
Between 2013 and now Shell has drilled four new wells in Bijupirá and Salema, which currently they have 12 producing and six injector wells.
http://br.reuters.com/article/domesticNews/idBRKBN0GZ2NY20140904?sp=true
Result of ANP 38th Biodiesel Bidding: 625.7 million litres awarded
In the 38th Biodiesel Bidding of ANP, 625.7 million of biodiesel litres were awarded. The average price was R$ 1.913 (US$ 0.778) per litre, without considering Petrobras’ margin, and the total negotiated amount reached R$ 1.209 billion (US$ 491 million). The diesel oil market foresees a commercialisation of 10.4 billion litres of B6 for September and October 2014.
The presentation of biodiesel offers occurred in one day (8 August) with 41 producers offering a total volume of 737 million litres. In the first day of selection (12 August) 535.9 million litres of biodiesel were awarded, and in the second day (13 August) 89.8 million litres of biodiesel were awarded.
The 38th Bidding aims to guarantee the supply of biodiesel in the national market during September and October 2014 as per Mining and Energy Ministry Ordinance No. 476 of 15 August 2012 and requirements set forth in the Public Bidding Rules No. 033/14-ANP.
The volumes will only be valid after approval of ANP’s board.
http://www.anp.gov.br/?pg=71913&m=&t1=&t2=&t3=&t4=&ar=&ps=&cachebust=1410180991167

5. Petrobras declares Sul de Guará, Nordeste de Tupi and Florim as commercial areas
Petrobras declared Sul de Guará, Nordeste de Tupi and Florim as commercial areas.
The volume contracted for the three pre-salt areas in the Santos Basin, is 1.214 billion bpd appraised in the exploration stage. According to Petrobras, the pre salt reservoirs have good oil quality, between 26 and 29 API degrees.
In Petrobras’ Business Plan 2014-2018, Nordeste de Tupi and Florim shall start the commercial production in 2018 and 2020, respectively, while Sul de Guará will have the start date of production released in the Business Plan 2015-2019. The dates are however subject to changes.
http://americaeconomiabrasil.com.br/negocios-e-industrias/petrobras- declara-comercialidade-de-sul-de-guara-ne-de-tupi-e-florim
Pelotas Basin, near Uruguay, shall enter the bidding of 2015
According to ANP, Pelotas Basin, located in south of Brazil near Uruguay, shall be the novelty for the next bidding of oil exploration areas in Brazil, which is expected to occur in June 2015.
The incentive to explore the area comes from the recent successful bidding promoted in Uruguay for an area close to the Pelotas Basin.
John Forman, geologist and ex-director of ANP, considers the bidding of Pelotas Basin interesting. According to him, in theory there is similarity between the Brazilian basin and the Uruguayan one.
http://americaeconomiabrasil.com.br/negocios-e-industrias/bacia-de- pelotas-perto-do-uruguai-deve-entrar-leilao-de-2015-diz-anp

6. ANP: Brazil might become a great raw oil exporter
The general director of ANP, Magda Chambriard, informed that Brazil might become a big exporter of raw oil as from 2018, with a daily average between 1.5 million and 2 million of bpd until 2020. If such production forecast is confirmed, Brazil will be an important exporter of raw oil, which will represent between US$ 50 billion to US$ 65 billion for the Brazilian balance of trade.
Also, Brazil is aiming to double its oil production between 2020 and 2022. Currently, the country produces 2.2 million bpd.
http://www.portosenavios.com.br/industria-naval-e-offshore/26043-anp- brasil-deve-se-tornar-grande-exportador-de-petroleo-cru
FPSO Cidade de Ilhabela on its way to Sapinhoá Field
Floating production storage and offloading unit - FPSO Cidade de Ilhabela – is on its way to Sapinhoá Field, in the pre-salt area of Santos Basin.
The FPSO unit is expected to contribute to Petrobras’ production and to operate in the last quarter of the year.
Petrobras aims to increase the national oil extraction of the year in 7.5% compared to 2013. The FPSO Cidade de Ilhabela is connected to eight producer wells and seven injector wells.
The unit will be capable to produce up to 150 thousand bpd, compress up to six million of cubic meters of natural gas per day and store 1.6 million bpd.
http://americaeconomiabrasil.com.br/negocios-e-industrias/fpso-cidade- de-ilhabela-segue-para-campo-de-sapinhoa-diz-petrobras
10 October 2014
Noronha Advogados,
London and Rio de Janeiro offices

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