1. Rio Oil & Gas 2008
70% Recovery factor: Petrobras Perspective
Solange Guedes
Executive Manager
Petrobras S/A

2. Summary
Overview of Petrobras E&P Reserves and
1
Production Forecasting
Mature Fields Management Strategy: Continuing
2
IOR Improvement
3 Technological Challenges
4 Conclusions
September/2006

3. Overview of Petrobras E&P Reserves
and Production Forecasting

4. Overview of Domestic E&P - 2007
Reserves - SPE
Proven reserves of 13.92
billion boe
Internal Reserve Replacement
of 123.6%
Production
2,065 thousand boed (1,792
thousand bopd)
5-year CAGR of 5.6%
Exploratory Area
140.3 thousand km²

5. Domestic Proven Reserve Development

6. Onshore Production Replacement (MM boe)
1.600
1.411,0 1.409,8
1.344,2 1.363,7 1.402,3 1.333,5 1.346,3 1.387,7 1.400,3 1.321,2 1.325,7 1.325,9 1.305,6
1.300
1.000
Equivalent Oil - Million boe
700
400
100
-200 78,5
[78,5] 164,5
[86] 255,8
-500 [91,4] 348,9
[93] 438,7
[89,8]
534,4
[95,7] 622,0
-800 706,0
[87,6]
[84]
811,3
[105,3] 914,3
-1.100 [103]
1021,2
[106,9] 1110,2
Proved Reserves Cumulative Production Annual Production [89] 1196,5
-1.400 [86,3]
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

7. Offshore Production Replacement (MM boe)
13.200 12427,4 12614,1
11701,4 11906,6
11191,8
11.200
9608,2
9.200
8186,3 8301,3 8282,5
7377,2
Equivalent Oil - Million boe
7174,3
7.200 6676
6187,1
5.200
3.200
1.200
-800 [214,7]
214,7
461,9
[247,2] 727,3
[265,4] 1045,2
[318]
[369,1] 1414,3
-2.800 [417,2] 1831,6
[443,6] 2275,2
[501,4] 2776,6
[520,3] 3297,0
-4.800 [499,5] 3796,5
[546,6] 4343,1
[613,7] 4956,9
Proved Reserves Cumulative Production Annual Production
[630,1]
-6.800
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

8. Domestic E&P Profile
2007 Production 2007 Proven Reserves (SPE)
9% 10% 4,5% 16,0%
23% 13,3%
58% 66,2%
2,065 thousand boed 13.92 billion boe
Onshore
Onshore Shallow water (0-300m)
Shallow water (0-300m) Deep water (300-1500m)
Deep water (300-1500m) Ultra-deep water (> 1500m)
Ultra-deep water (> 1500m)
24%
Current Exploratory Area 38% 11%
140.3 thousand km2
27%
65% of the concession areas are located in deep / ultra-deep waters.

9. Mature Fields Management Strategy:
Continuing IOR Improvement
Mature Fields - E&P Strategy
Integration
Integrity
Cost
Technology, Process, People

10. Domestic Fields
Green Fields
41%
Domestic Production
2.065 mil boed
Brown Fields
59%
Offshore Brown Fields Production
69%
1.218 mil boed
Onshore
31%

11. Onshore Equivalent Oil in Place
Volumes In Place = 17.1 billion boe
Produced
19%
Remain in
Place
68% Reserves
13%
Total RF = 32%

12. Offshore Equivalent Oil in Place
Volumes In Place = 97 billion boe
Produced
8%
Reserves
20%
Remain in
Place
72%
Total RF = 28%

13. RECAGE
Corporate program focused on
the improvement of production
levels of fields with high degree of
exploitation.
Main Objectives
Main Objectives
Improve production levels
Improve the Recovery Factor
Costs optimization
Reduce decline rates
Lengthening the economic life

14. First Phase (2004-2008)
Main focus: onshore and shallow water mature fields
Increase water injection and velocity drainage
up to 10% VOIP and final WOR up to 35;
Improve reservoir management practices;
Optimize steam injection and water injection
projects;
Remove bottlenecks in production facilities;
Optimize lift systems;
Reduce drilling and workover costs – onshore
operations (rigless operations)

15. RECAGE: main results
4% Increase on Recovery Factor (average from 206 fields)
2004 2007
31% 35%
9000
Total Reserves (Brown Fields) MM boe
8000
7333
7125
6877
7000
6075
6000
5000
4000
3000
13,2% 3,6% 2,9%
2000
1000
0
2004 2005 2006 2007 Time (year)
Additional Recoverable Volume: 1258 MM boe

16. Onshore Sergipe mature fields - production
history and forecasting
History Forecast
0,08 RECAGE Phase 1
Total
0,06
Oil rate (MMbbl/day)
Carmópolis
0,04
Camorim
0,02
Siririzinho Dourado
0,00
1963 1973 1983 1993 2003 2013 2023 2033 2043 2053
Time (year)
∆RF = 4%

17. Canto do Amaro Field
Increase the water injection up to 7%
VOIP per year
Drill 200 new wells (injectors and
producers)
Selectivity only for injectors
Commingled completion
High volume of water produced
BPD
50000 Revitalization Project
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
∆RF = 5%
1986 1991 1996 2001 2006 2011 2016 2021
Production History Project

18. Miscible CO2 Injection - Miranga Field
Pilot Project (april, 2009)
250 3.000.000
200 2.400.000
150 1.800.000 Cumulative Additional Production (m3)
Additional Production (m3/d)
100 1.200.000
50 600.000
Also, a CCS effort in Brazil
∆RF = 10%
0 0
2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044 2047

19. Well Technology: Multifractured Horizontal Wells (HRMF)
Bonito Field: low-permeability carbonate reservoirs
Production Unit
Oil Pipeline
Gas Pipeline
∆RF = 15% - 20%

20. Campos Basin: The maturity phase has arrived
Discovery:
1974 – Garoupa Field
N First Oil Production:
1977 – Enchova Field
Water Depth: 50 - 1500m
Floating Production Systems: 32
(23 SS, 9 FPSO)
Fixed Platforms: 15
Sea water Injection Total Stationary Production Units : 46
Produced water Reinjection
Planned Sea water Injection Producing Fields: 39

21. Marlim Field: different phases of production
Marlim Projects
400
RF = 50% RF = 52% RF = 55%
350
Thousand BPD
RF = 47%
83
300 100 51
RF = 46%
250 81
67
200
150
2008 2009 2010 2011 2012 2013 2014 2015
Production maintenance Increase Processing Marlim Phase 2 Marlim Phase 3 Marlim Phase 4
Marlim 13 new 100processing December/07RFand P-37
Increase waternew wells –bbl/dto and 2 injectors) 70%
– Phase 4: preparing the basis in 2010
wells (11 producers achieve
6 thousand in FPSOs P-35 around
(900 MM bboe additional)

22. Marlim Field : technologies to achieve higher RFs
VASPS BCSS
4D Seismic
BCS
CAISSON
2011
2009 2010 2012
SSAO
ANM
Piggy-back
TLWP
SBMS*
RWI*
Well technolgies

23. Campos Basin - Recovery Factor Evolution
Recovery Factor (%)
Time (years)

24. Technological Challenges to
achieve higher recovery factors
PROPES

25. Recovery toolbox
Water injection Conventional wells
HC gas injection
Horizontal wells
4D Seismics
Raw sea water injection Multilateral wells
WAG SMART wells
MEOR ERD wells
Steam HRMF wells
CO2 injection Light Well Intervention
Polymer injection
Real Time Operations Centers
Topside processing
Sub sea separation
Down hole separation
Sub sea pumping &
compression
Down hole pumping &
compression
Boosting systems
(VASPs, SBMS..)

26. 4D Seismic
Interpretação 4D Seismic
S4D - Casos
Applications of 4D Seismic
Applications of
Identificação de Caracterização de
Áreas Lavadas Falhas Selantes
13 wells - 9 relocated
Identificação de
Capa de Gás Marlim Field
Anisotropia de
Permeabilidades
Identificação de Ajuste de Histórico
Falhas e Área de de Poços
Sobrepressão.
2
262 kgf/cm
2
305 kgf/cm
Capa de Gás Identificaçãoand Falhas Falha Selante
Faults de Anisotropia de
Permeability Ajuste Histórico
Gas Caps Área de Sobrepressão Sealing Faults Permeabilidade Production
Overpressure Areas Anisotropy com suporte S4D
History Matching

27. Subsea raw water injection (RWI)
Structure
Filters
Mid-water Inlet Pump
Controls
Scenario:
Injection Well
Albacora Field (2009)
Light oil
180000 1st Revitalization cycle
Unconsolidated sandstone
160000
140000
2nd Revitalization cycle
bpd 120000
100000
80000
2003 2007 60000
40000
RF 40% 47% 20000
0
out/44
out/47
out/53
out/50
out/41
out/38
out/29
out/99
out/05
out/11
out/17
out/20
out/23
out/26
out/32
out/35
out/87
out/93
out/02
out/08
out/14
out/90
out/96

28. Subsea system oil-water separation
Pilot Project in Marlim Field (jan. 2010)
Scenario: GAS OIL & GAS
• Marlim Field (2010)
• Heavy oil PRODUCTION
• Very unconsolidated sandstone OIL
OIL – WATER
GAS
SEPARATION
SEPARATION
WATER
OIL & GAS
FLOWLINE
INJECTION
WELL
SUBSEA OIL-WATER
SEPARATION
PRODUCTION
WELL
PRODUCED
FLUIDS
PRODUCED WATER
INJECTION FLOWLINE

29. Boosting Systems
SBMS VASPS - Vertical Annular
subsea multiphase pumping BCSS Separation & Pumping System
Marlim Field - to be installed (2009)
Marimbá Field (P-8)

30. Offshore Polymer Injection
New scenario:
Heavy oil offshore field (~15o API)
Excellent permoporosity quality
Recovery Process: viscosified water (by polymer injection)
Example:
PapaTerra field (DW: 1200 m - Campos Basin)
High porosity and permeability
15º API Polymer Flood Equipment
oil viscosity: 50 to 150 cP
Horizontal wells with OHGP
TLWP and FPSO
Benefits - preliminary analysis :
Increase Recovery Factor : ∆RF = 7%
Decrease water production Seminário “OG21-Workshop for Enhanced Oil Recovery”

31. Real Time Operation Centers
Picture

32. RECAGE – Phase 2
Expand the concept of Phase 1 to all fields,
including the Deepwater Fields Revitalization
Investment on key technologies (EOR process, light
well intervention, subsea processing and complex
well geometries)
Phase 2
Fenix Project: recovery factors benchmarking x
reservoir technical limits identification for all
Petrobras fields (onshore and offshore)

33. RECAGE – Phase 2 - Ambition
Offshore Fields
Recovery factor of:
70% on platform, low complex reservoir fields
60% on subsea, low complexity reservoir fields
Onshore Fields
Recovery factor of:
70% on light oil and/or low complex
reservoirs fields
35% on extra heavy oil and/or high complex
reservoirs fields

34. 70% RF is becoming a reality
Field Location Recovery Factor (%)
Marlim offshore 56
Bicudo offshore 56
Lagoa Parda onshore 61
Araças onshore 61
Rio Urucu onshore 61
Piraúna offshore 63
Namorado offshore 64
Miranga onshore 67
Buracica onshore 69

35. Final Remarks
During at least the next 20 years, oil and gas production from mature
fields will supply at least half of the World’s demand for energy.
Old paradigms for oil and gas production will be eclipsed by new
practices, new drivers and new technologies geared towards increased
recovery from mature fields.
The continued high oil price scenario, coupled with new tools,
technologies and processes will make 70% recovery targets for low
complexity reservoirs a reality .