National Petroleum Agency News

Brazil’s Petrobras is on track to become the world’s largest oil producer among publicly listed companies by 2030, based on Rystad Energy’s latest data and forecasts.Brazil’s biggest-ever oil auctions in November were generally deemed to be disappointing, receiving muted interest from international exploration and production companies.However, national oil company Petrobras could not have asked for a better outcome. The world’s fastest growing oil producer gained nearly full control of more than eight billion barrels of oil in the Buzios field, where a sixth floater is being planned.To develop these and other resources off the coast of the South American country, Brazil is set for a whopping $70 billion offshore capital investment spree between 2020 and 2025, solely on field development.

Petrobras today signed with PetroRio S.A. (‘PetroRio’) the contracts for the sale of 20% of its stake in the concessions of Bijupirá and Salema fields, currently operated by Shell. The transaction amounts to US$ 25 million and is subject to adjustments that are common to this type of operation. These fields are located in the Campos Basin, between 480 and 850 meters depth. Daily production averages 22 thousand barrels of oil and 325 thousand m3 of associated gas. The oil extracted is light, between 28º to 31º API. As part of the Petrobras’ Divestment Plan, this operation is related to the portfolio optimization in the Exploration and Production area, and is in line with the 2015-2019 Business and Management Plan.

In an effort to spread out oil and gas production to other parts of the country and increase overall oil production, Brazil has finally intensified hydrocarbon exploration along its northeastern and northern coasts. These are some of the poorest regions in the country and infrastructure for oil and gas exploration is minimal, yet significant discoveries and seismic indicators of large reservoirs are tantalizing and have attracted major local and foreign investors. Potential for oil discoveries in the area is proven, yet players will be faced by many challenges offshore and on land in order to uncork reservoirs at the Northern Frontier.

Brazil’s Libra pre-salt field, in Block SS-AUP1 in the Santos Basin, with estimated recoverable oil volumes of 8-12 billion barrels of oil equivalent (BOE) and in place volumes of between 25-40 billion BOE, was the country’s first pre-salt field to be auctioned. The rules governing this historical auction have been shunned by important super-majors such as Exxon Mobil, Chevron and BP and also by major players such as the BG Group and Statoil. Many industry analysts were surprised that state-owned players from China, India and Malaysia dominated the list of companies that have agreed to the controversial terms imposed by the Brazilian government, through its National Petroleum Agency (ANP).

Protestors are rallying against the Brazilian auction of the Libra oilfield site discovered in 2010 roughly 140 miles off the coast of Rio de Janeiro. Multiple Sources reported that some 1,100 troops have already been deployed by the Brazilian government as a preventative measure after protests grew violent last week in Rio. The auction, which is scheduled to take place this afternoon, dictates that state-run Petrobras would bring in more than 40% of recovered oil from Libra for the Brazilian state.

To understand how ABS and DNV participate in Brazil’s complex and challenging Maritime and O&G industries, MR spoke to ABS’s João Carlos Ferreira , DNV’s Tommy Bjørnsen and their colleagues in Rio de Janeiro. The American Bureau of Shipping (ABS) is a non-profit classification society founded in 1862. ABS has been present in Brazil for more than 40 years, with more than 200 employees distributed between six offices in Brazil. “We have been providing classification services to the offshore industry longer than any other class society, and we are the current market leader in worldwide MODU classification and also market leaders in floating production units (FPI)…

Danilo Souza Baptista, OSX’s Director of Naval Construction, sat with MR Contributing Editor Claudio Paschoa at EBX Group’s new HQ in downtown Rio de Janeiro, in a meeting room overlooking Guanabara Bay with Sugar Loaf Mountain as a backdrop, to discuss its ambitious yet realistic vision to create one of the largest, most efficient shipyards in the Americas, as well as its Integrated Service Solution to the meet offshore O&G needs. OSX is a relatively new company, founded by the EBX Group in 2009. The EBX Group, is a holding composed of several companies active in different industries such as mining, oil & gas, logistics, real estate, among others.

As Brazil continues to emerge as a global offshore and shipbuilding powerhouse, are its local content laws hindering progress? Brazil’s Oil & Gas industry is in the midst of an unprecedented growth curve, with  major new reservoirs being found in deepwater, the so-called pre-salt. This growth in the O&G industry has had a major influence in the growth of the nation’s shipbuilding industry, which until only a few short years ago was stagnant. The main reason for this massive increase in shipbuilding and also in the construction of new shipyards is that the O&G industry demands various kinds of ships and support vessels in order to properly operate and maintain growth.

Petrobras discover a new light hydrocarbon accumulation in ultra deepwaters of the Sergipe-Alagoas Basin (see map). The well is 85 km off the Aracaju coast, state of Sergipe, at a 2,583 meter water depth. Drilling was completed at 5,347 meter depth. This is Petrobras's fourth important hydrocarbon discovery in the ultra deepwaters of the Sergipe-Alagoas Basin this year. From August to October this year, Petrobras had announced the presence of hydrocarbon accumulations in wells 1-SES-168 (Moita Bonita), 3-SES-165 (Barra) and 1-SES-167 (Farfan).

Petrobras's preliminary drilling in the Jupiter Nordeste well, in the Santos Basin, confirms presence of gas & condensate. The new well, which is still being drilled, has reached 5,438 meters. It is located in ultra-deep waters of block BM-S-24, at a water depth of 2,161 meters, and 275 km off the coast of Rio de Janeiro. So far, well 3-BRSA-967A-RJS has detected an oil column of 176 meters in rocks of excellent permeability and porosity. The consortium that holds the concession of block BM-S-24 will proceed with the activities and investments necessary to assess the area…

Petrobras announce the Supreme Court of Justice partially suspends the injunction ordering shutdown of Transocean activities. This suspension by the Supreme Court of Justice, which is in response to an action filed by Brazil's National Petroleum Agency (ANP), allows for – "Transocean to continue its activities in Brazil, in locations other than Frade field".

Local equipment suppliers reap dividends, but there’s room for foreign businesses – if they know how to play. After huge oil finds in recent years, Brazil's need for offshore vessels continues to expand and could double between now and the end of the decade. Brazil's state-run oil company Petrobras wants to extract billions of barrels of oil while also developing its shipbuilding and service industries to create jobs. Meanwhile, Brazil is trying to use locally made vessels and equipment, but foreign companies are benefiting from the nation's oil bonanza too.

Petroleo Brasileiro SA, found traces of oil and gas in an offshore well in the . Petrobras, as the Rio de Janeiro-based company is known, registered signs of oil and gas in the offshore PER block, according to 's National Petroleum Agency. Petrobras also found more oil in a second onshore well in the ES- T-364 block in Espirito Santo state. Petrobras has not determined if the wells can be developed economically. Source:  Bloomberg

Exxon Mobil Corp., BP Plc and Petroleo Brasileiro SA are among the companies interested in bidding for Brazilian oil and natural-gas exploration leases as the country seeks to increase its energy independence, according to a Bloomberg report. Brazil has 12.2 billion barrels of proven oil reserves, according to the National Petroleum Agency. Rio de Janeiro-based Petrobras is spending $112b through the end of 2011 under a plan designed to double worldwide production to more than 4 million barrels a day by 2015, the company said on its website. Brazil reportedly is offering rights to explore 313 offshore areas in nine basins and aims to get at $1.1b from selling these licenses. [Source: Bloomberg]

Bloomberg reported that Petroleo Brasileiro SA, Brazil's state- controlled oil company, opened a new exploration frontier with the discovery of oil beneath more than two kilometers of ocean and two kilometers of rock a company official said. While Petrobras doesn't know the extent or size of the oil deposits found about 250 kilometers off the shore of Rio de Janeiro, it is the first time oil has been found under such conditions, offering the chance that Petrobras may increase the production of light crude oil faster than expected, Gabrielli said in an interview. The discovery may be as large as the Campos Basin, Brazil's largest offshore district, said Haroldo Lima, head of Brazil's national petroleum agency, or ANP, in an interview.

The exploration acreage was acquired through the company's successful participation in Brazil's seventh bid round. The blocks are located in shallow water areas of the Espírito Santo Basin. Shell will operate block ESM 438, with a 100% share, and partner with Brazil's national oil company Petrobras who will operate blocks ESM 411, 436 and 437. Shell was also successful in acquiring alone one deepwater area in Santos, block SM 518. "We are pleased with the results of the bidding round, which builds on our existing portfolio, giving us an additional platform for growth. It reiterates our long-term commitment to Brazil and strengthens our relationship with Petrobras," said John Haney, Shell EP Vice-President.