Government Expectations to Technology Innovation in the oil & gas sector

José Carlos Tigre

Technical Advisor –Research & Technological Development

GOT IC Workshop

“Next Ten Years of Subsea and Deepwater Technology”

Rio de Janeiro, march 2016.

Summary

World oil supply trend 1

R,D&I 4

Final Remarks 5

Pre-salt(ultra deep water) : Technological challenges 3

Brazil: Current Scenario and Perspectives 2

World oil supply trend 1

R,D&I 4

Final Remarks 5

Pre-salt(ultra deep water) : Technological challenges 3

Brazil: Current Scenario and Perspectives 2

World proved reserves are growing consistently since the 80’s. In 2014, R/P was 52,5 years.

Fonte: BP Statistical Review, Jun 2015

Evolution of Proved Oil Reserves

Evolução das Reservas (bilhões de barris) Reserves Evolution (billion barrels)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

0

50

100

150

200

250

300

350

World Total (right axis)

Iraque

EUA

Canadá

México

Brasil

Rússia

África

Venezuela

Irã

Arábia Saudita

China

Main exploratory frontier: Deepwater

Deepwater discoveries are becoming increasingly important.

Source: Wood Mackenzie Exploration Service

World oil supply trend 1

R,D&I 4

Final Remarks 5

Pre-salt(ultra deep water) : Technological challenges 3

Brazil: Current Scenario and Perspectives 2

Brazil: Current Scenario

Proven Reserves Oil ≈ 13 billion barrels Gas ≈ 429 billion m3

Production (jan/2015)

Oil and NGL ≈ 2.35 million barrels/day

Gas ≈ 97 million m3/day

Imports /Exports balance (2015)

Oil – 410 thousand bpd Gas – 55 million m3/day

-

5

10

15

20

25

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Proven Reserves (B boe)

Oil Natural Gas

National oil production

In 2015, 31% of Brazilian oil production came from pre-salt area.

-

0.5

1.0

1.5

2.0

2.5

3.0

2008 2009 2010 2011 2012 2013 2014 2015

Production Millions barrels/day

Onshore Pre-salt Pos-salt

World oil supply trend 1

R,D&I 4

Final Remarks 5

Pre-salt(ultra deep water) : Technological challenges 3

Brazil: Current Scenario and Perspectives 2

Water depth

Rush for technological solutions that lead to the seabed production structures.

Regulation may work as the induction factor of this movement.

Project Optimization +

Learning Curve +

Technological inclusion

WITH INVOLVEMENT OF NATIONAL INDUSTRY

Co

st a

nd

Co

mp

lexi

ty

R,D&I Challenges

Local Content Overcoming challenges

Atlântico Sul Brasa

WORLD CLASS PRODUCTS

Suppliers

OPERATOR

Inte

grat

ors

3rd level

Suppliers 1st level

2nd level

Man

ufa

ctu

rers

as

sem

ble

rs

Co

mp

on

en

ts

Subsea Factory

Source: Photo Statoil - Peregrino field

Subsea separation water/gas/oil Subsea compression system Submarine oil pumping system Subsea multiphase pumping system Submarine power generation Submarine gas reinjection system ...

Shallow Water Deep Water

World oil supply trend 1

R,D&I 4

Final Remarks 5

Pre-salt(ultra deep water) : Technological challenges 3

Brazil: Current Scenario and Perspectives 2

Investments in Universities and Research Centers

Currently with 22 companies Research and technological development

for the pre-salt.

RJ

* *

BA

* *

RS

* *

PR

* *

AL

* *

SE

* *

PI

* CE

* *

AM

*

MT

* GO

*

DF

*

MS

*

ES

* *

PA

* * MA

* *

SC

* *

SP

* *

RN

* *

MG

* *

TO

*

PE

* * PB

* * R$ 11,2 billion in R&D investment between

1998 and 2015

23 States 118 accredited institutions 674 research institutes

Parque Tecnológico - UFRJ

Mandatory investments in R & D

0.00 0.03 0.13 0.25 0.52

0.84 1.24

1.75

2.37

2.98

3.85

4.48

5.23

6.26

7.49

8.75

10.16

11.19

0

2

4

6

8

10

12

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Billio

n R

$ Cumulative value until 2015 (R$ Billion)

World oil supply trend 1

R,D&I 4

Final Remarks 5

Pre-salt(ultra deep water) : Technological challenges 3

Brazil: Current Scenario and Perspectives 2

Final Remarks

• Deepwater becoming increasingly important in world reserves replacement.

• The development paradigm has definitely shifted from shallow to deep water.

• We are protagonists in exploration and production in this environment, and the pre-salt discovery reinforced this vocation.

• Now it's time to introduce technology to optimize designs and expand returns for companies and the society.

• The pre-salt is an excellent inducer for this development.

National Agency of Petroleum, Natural Gas and Biofuels – ANP

Rio Branco Avenue, 65 - 12º to 22º floor - Center - Rio de Janeiro – Brazil

Phone: +55 (21) 2112-8100

www.anp.gov.br

Technologies developed with R&D clause

Winner of the first ANP Technological Innovation Award 2013, designed to honour projects that received funds

from R&D clause and contributed to the increase of local content in goods and services.

Subsea Oil Water Separation System (SSAO) – Marlim Pilot Project

• The first deepwater water-oil separation system.

• About $ 90 million from R&D clause and an equipment with 67% local content.

• The operation of the system consists of separating in deepwater, water produced by an oil well and reinject it into the reservoir, increasing its pressure and thus the oil production and recovery factor.

Designed and Manufactured in Brazil 30.000 bo/day in each Caisson Technology to IOR Separador de 35”od x 100m

Client: Shell Petroleum Brazil Ltda. Project: Parque das Conchas

Location: Campos Basin - Brazil Start of Operation: July 2009

Project conducted using the 1% R & D clause.

4 Bombas Caissons c/Separadores Gas Liquido em LA de 1800m, 9 km step-out + 2 módulos de

bomba

Subsea Separation and Pumping System

Technologies developed with R&D clause Não consegui

traduzir alguns termos

técnicos!

• World's first subsea gas compression facility – Åsgard field.

• 1,800-tonne steel frame to be installed on the seabed to form the base of the world's first subsea gas compression facility.

• It is the largest template manufactured by Aker Solutions, measuring 74 metres in length, 45 metres in width and 26 metres in height.