LIBRA FIELD Leveraging Brazilian Pre-Salt Development and - - PowerPoint PPT Presentation

LIBRA FIELD

Leveraging Brazilian Pre-Salt Development and Technological Innovation from Petrobras ultra-deep water projects —

Orlando Ribeiro

Subsea, Wells & Facilities General Manager E&P-LIBRA

China-Brazil Forum for Subsea Technology

MAY 16th, 2016 RIO DE JANEIRO, RJ, BRAZIL

FORWARD-LOOKING STATEMENTS: DISCLAIMER The presentation may contain forward-looking statements about future events within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are not based on historical facts and are not assurances of future results. Such forward-looking statements merely reflect the Company’s current views and estimates

• f

future economic circumstances, industry conditions, company performance and financial

• results. Such terms as "anticipate", "believe", "expect", "forecast", "intend",

"plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by the Company with the SEC, specifically the Company’s most recent Annual Report on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties inherent in making estimates of

• ur oil and gas reserves including recently discovered oil and gas

reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result

• f

new information or future events or for any other reason. Figures for 2014 on are estimates or targets. All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this presentation. NON-SEC COMPLIANT OIL AND GAS RESERVES: CAUTIONARY STATEMENT FOR US INVESTORS We present certain data in this presentation, such as oil and gas resources, that we are not permitted to present in documents filed with the United States Securities and Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K because such terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X.

Disclaimer —

2

(100%)

SANTOS BASIN

TRANSFER OF RIGHTS

SANTOS BASIN

PRODUCTION SHARING CONTRACT

Pre-Salt —

SANTOS BASIN

CONCESSION

2 blocks on stream 3 blocks in exploration

CAMPOS BASIN

CONCESSION

6 blocks on stream 3 blocks in exploration

CAMPOS BASIN

CONCESSION

Other Operators 1 block in exploration Concession blocks Transfer of rights area Production sharing contract 3

Libra: Characteristics —

Source: PSC; Libra; Portal Brasil

Discovery:

• Petrobras, in 2010
• Well 2-ANP-2A-RJS

Location

• Santos basin
• 170 km of the coast of RJ
• 2.000m below sea level
• 6.000m depth

Area

• 1500km2 of area

Consortium (under PSC)

Key information

(Operator) PPSA (PSC manager) 40% 20% 20% 10% 10%

Low H2S Good reservoir quality (porosity / permeability) High GOR (~400 m3/m3) Light Oil ~27 API High CO2 content (~40%)

Libra: Characteristics —

• Libra has some unique characteristics
• Technical Challenges : deep, fluid characteristics (GOR, CO2).
• Production Sharing Contract
• Management : Integrated project team with secondees
• Actual Cooperation - active participation between Operator and

partners with technical expertise

• Innovation Opportunities
• New ideas and local market practices
• “new rules” and encourage “out side the box thinking”

EWT —

Wells

01 Production 01 Gas Injection

Reservoir

27o API GOR  410 to 450 m3/m3 CO2 ~45%

Production Unit

Oil Capacity: 50 mil bbl/d Gas Compression: 4,0 MM m3/d

EWTs: Reduction of uncertainty by understanding dynamic behavior is crucial to optimize final production systems. EWT with gas reinjection for one year to:

• Test different zones in each well (production / injection perforation and completion strategies)
• Evaluate a large drainage area
• Be able to do more interference tests
• Test high production and injection rates for longer periods

EWT - FPSO under construction

(Jan-Apr/2016)

—

FPU modules construction area - 300 ton gantry crane Turret E-house

EWT - FPSO under construction

(Apr/2016)

—

Turret arm

Dry dock

EWT - FPSO under construction

(Apr/2016)

—

EWT - 8” Flexible Lines —

PILOT - Production System —

PRODUCTION UNIT

• 180.000 bopd and 12MM m3/d gas
• 2.100m WD
• Leased Unit

Subsea Equipment

• Standard Pre Salt Trees
• 8” Prod Flowlines
• 4” Service
• 6” Injection Loop

STANDARDIZED EQUIPMENT

MAIN DRIVERS

• Anticipation of production and cost recovery
• Dynamic data acquisition – uncertainties

reduction for the remaining production systems

• Possibility to test water injection and WAG

WELLS

• 8 Producers
• 9 Injetcors (WAG)
• Inteligent Completion up to 3 intervals

STANDARDIZED EQUIPMENT

Libra Field: Pilot FPSO —

System Description GTD requirements Subsea Interface

• Hydraulic Power Unit (HPU)

and chemical injection

• Allows Intelligent

Completion Wells Riser Balcony

• Producer well slots
• WAG injection well slots
• Producer-WAG well slots
• 8
• 9
• 3

Processing Capacities

• Oil
• Liquids
• Produced Water
• Gas
• Water injection
• 26.8 Mm³/d (~180 kbpd)
• 26.8 Mm³/d (~180 kbpd)
• 24 Mm³/d (~150 kbpd)
• 12 MM Sm3/d
• 225 kbpd

Produced Gas Contaminants

• H2S
• CO2
• 170 ppmv
• 30% - 60%

Drivers for Subsea Studies

Accelerate Ramp-up

• Possible Risers pre-installation

Reduce CAPEX

• Number of Flowlines
• Flexible x Rigid
• Dedicated Umbilicals x Distribution System
• Maximize installation resources

High Flowrates

• Larger flowline diameters to handle high capacity wells

Subsea Alternatives Under Evaluation —

FSHR SLWR

Rigid Risers

Subsea Alternatives Under Evaluation —

Gathering Ring

Subsea Alternatives Under Evaluation —

Hi-SepTM – High Pressure Dense CO2 Separation

Typical high CO2 content fluid phase envelop

— Key concepts The mixture of CO2 and heavy hydrocarbons generates instabilities in the traditional phase equilibrium, creating an unusual envelope, which looks like Liquid-Liquid equilibrium.

Traditional Phase Envelope Rich-CO2 phase envelope

Hi-SepTM – High Pressure Dense CO2 Separation

Hi-SepTM + supported advanced subsea technologies

—

Technology development and qualification

• Subsea deployable HiSepTM – multiple units will be needed
• Subsea single-phase pumping for dense CO2
• Subsea power requirements - transmission and distribution

HiSepTMsubsea system design

• Subsea system conceptual design, including P&ID and layout
• Subsea controls and instrumentation

Libra Field: Conclusion —

• Opportunity for vendors and operators to find new ways to work together towards

creating value

• Several potential alternatives to choose from involving rigid and flexibles
• Competition: Rigid x Flexibles  Risers Systems
• “Clean sheet of paper” competition
• Cost, Revenues and Industry Capacity to be taken in consideration in the analysis
• A careful, detailed analysis to select the best option is being carried out by JPT