Pre-Salt Reservoirs Offshore Brazil:

Perspectives and Challenges

José Formigli
PETROBRAS
E&P Production Engineering
November 2007
 DISCLAIMER

•The presentation may contain forecasts about future events. Such

forecasts merely reflect the expectations of the Company's management.
Such terms as "anticipate", "believe", "expect", "forecast", "intend",
"plan", "project", "seek", "should", along with similar or analogous
expressions, are used to identify such forecasts. These predictions
evidently involve risks and uncertainties, whether foreseen or not by the
Company. Therefore, the future results of operations may differ from
current expectations, and readers must not base their expectations
exclusively on the information presented herein. The Company is not
obliged to update the presentation/such forecasts in light of new
information or future developments.

•Cautionary Statement for US investors:

•The United States Securities and Exchange Commission permits oil and
gas companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally producible
under existing economic and operating conditions. We use certain terms
in this presentation, such as oil and gas resources, that the SEC’s
guidelines strictly prohibit us from including in filings with the SEC.
 New Discoveries – Pre-Salt Reservoirs

TUPI AREA (BMS-11): light oil (28º API) in a new frontier in the Santos Basin.
Caxaréu Field – light oil (30° API) in the northern part of the Campos Basin
Pirambu Field – light oil (29° API) in the northern part of the Campos Basin
Jubarte Field – light oil in the northern part of the Campos Basin
Santos Basin Pre-Salt Seismic Section
Tested wells in the Pre-salt play

Tested wells

Tupi Area
5 to 8 billion barrels
 Some production tests performed on the Pre-Salt

1-RJS-628A

1-RJS-617 3-RJS-646

50 150 N
1-SPS-050 0 100 200 km
 Pre-Salt in the Santos Basin

290 km
13 PMXL
3
km
BM-S-42

166 km

22
km
20
0 BM-S-42
km

RJS-617
BM-S-10

RJS-628
BM-S-11 BM-S-24
SPS-52
SPS-50
RJS-646

BM-S-8
BM-S-9

SPS-51
BM-S-21
Tupi Area
BM-S-17 5 to 8 Billion barrels
 Consortia for the Pre-salt blocks in Santos Basin
Bloco Appraisal Plan Consortium
BM-S-8 BR (66%), SHELL (20%), PETROGAL (14%)
BM-S-9 SPS-50 Area BR (45%), BG (30%), REPSOL (25%)
BM-S-10 RJS-617 Area BR (65%), BG (25%), PARTEX (10%)
BM-S-11 RJS-628 Area BR (65%), BG (25%), PETROGAL (10%)
BM-S-17 BR (100%)
BM-S-21 BR (80%), PETROGAL (20%)
BM-S-22 ESSO (40%), AMERADA (40%), BR (20%)
BM-S-24 BR (80%), PETROGAL (20%)
BM-S-42 BR (100%)
BM-S-50 BR (60%), BG (20%), REPSOL (20%)
BM-S-52 BR (60%), BG (40%)

2 blocks 100% Petrobras

3 Appraisal Plans approved
5 blocks with partners, Petrobras operates
1 block as non-operating partner
 General Data – BM-S-11 (Tupi Area)

• Petrobras (65%), BG (25%), Petrogal – GALP (10%)

• Heterogeneous layered carbonates - variable reservoir quality
• Water Depth about 2,200 m
• Salt layers with thickness till 2,000 m
• Well tests indicate potential flow rates of 15-20000bopd per
well
• Oil API: 28-30º
• Oil viscosity around 1 cP
• GOR between 140 and 220 m3/m3
• Initial pressure 580 kgf/cm2
• Low TAN (Total Acid Number)
• CO2 in the associated gas (8 - 18%)
• Concern with flow assurance due to paraffin deposition in pipes
 BM-S-11 – TUPI Area

Selected Area for the Pilot: 110 km2

Area of the Appraisal Plan: 936 km2

Recoverable volume just for the upper reservoir, for the whole area: 4.5 billion bbl.

As two other carbonate reservoirs were found in RJS-646, the preliminary

estimatives for the recoverable volume for the whole Tupi area can reach 8 billion
bbl (upper case)

Lower case: 5 billion bbl

Upper case: 8 billion bbl
 Extended Well Test in the Tupi Area

EXTENDED WELL TEST

1 well connected to a DP
FPSO, already under
convertion, to investigate the
reservoir behavior. Dynamic Shuttle
Positioning Tanker
FPSO
Scheduled to early 2010.
 Pre-salt discoveries in Espírito Santo State
(Campos Basin)

4-ESS-149
CHT
BLA
1-ESS-122 N
1-ESS-116 6-CHT-4

3-ESS-110HPA 1-ESS-119
BFR
JUB NAU

BAZ
1-ESS-103
1-ESS-125
1-ESS-103A-ES S
4-ESS-135 MGG
Gasene
4-ESS-172 CXR 3-ESS-175

PRB CTU
4-ESS-175-ES
4-ESS-172-ES

77 Well tests showed high productivities in

km
the pre-salt reservoirs.

Cachalote Anã Argonauta

Franca Ostra 20 km
Jubarte Náutilus

Azul Mangangá
Caxaréu Abalone

Pirambú

Catuá
 Pre-Salt discovery in the Northern Part of the
Campos Basin: ESS-103A well (Jubarte Field)
Oil Production flowline
Electro-Hydraulic Umbilical
Power cable
Service Line

P-34
Shuttle

LDA: 1343 m

7-JUB-2HPA
3-ESS-110HPA

7-JUB-06

Ancoragem
7-JUB-04HP

Current plans consider ESS-103 start

up in April, 2008, connected to the P- 1-ESS-103A
34 FPSO.
Ongoing studies indicate that other pre-
salt wells could be connected to the
 Mobilizing critical resources – Petrobras strategy

• Long run standardization program for most well design/ related

equipment, as well as subsea hardware (wellheads, subsea trees,
flexible lines, …)
• Extending this strategy to FPSO/Semi-Submersible design; ex:
Opportunity FPSOs and FPSO “Flex”
• DP FPSO (2nd in the fleet) for Extended Well Test already under
conversion
• Established “batch orders” with key suppliers for long lead itens
• Mobilized fleet + current negotiations with contractors for rigs,
laying vessels, anchor handlers, …
• Established long term contracts with Service Companies
• Implemented culture for running fast track projects: Golfinho
FPSOs, Plangas FPSOs, Roncador 1st DP FPSO, …
• Interacting with the market for gas transportation to shore through
alternative solutions in relation to traditional trunk line (LNG,
CNG, GTW,…)
• Running negotiations with partners for project’s scope and budget
approvals
Technological Challenges
 Technological Challenges - I
Reservoir
• Facies definition from seismic data.
• Internal reservoir characterization, with focus on the main
heterogeneities.
• Secondary recovery: technical feasibility of water and gas injection.
• Geomechanics of the surrounding rocks with depletion.

Well Engineering:
• Deviation of the wells into the salt zone.
• Hydraulic fracture in horizontal wells.
• Wellbore materials, resistant to high CO2 content.
• Slow penetration in the reservoir.
 Technological Challenges – II

Flow assurance
• Paraffin deposition in long pipelines.
• Hydrate control.
• Scaling control.

Logistics for the associated gas

• Gas pipeline larger than 18” in water depth of 2,200 m.
• Long distance to shore (300 km).
• Scenario for new technologies offshore: LNG, CNG, GTL, GTW, etc.
 Technological Challenges - III

Floating Production Units

• Mooring in water depths of 2,200 m
• Interaction with the riser’s system
• Scenario for platforms with access to the wells (SPAR, FPDSO)

Subsea engineering
• Qualification of risers for water depth of 2,200 m, considering CO2 and
high pressure.
• Scenario for riser towers, SCRs with lazy wave and other technologies.
• Qualification of thermal insulated flowlines for water depths of 2,200 m.
• Flowlines for high pressure gas injection
 Petrobras Technological Corporate Programs

PROPES

PROSAL

TECHNOLOGY PROGRAM ON
NEW EXPLORATORY
FRONTIERS
 PROSAL - Pre-Salt Technological Program
CENPES
Objective:
Develop and disseminate technologies to incorporate
reserves and to develop the production of the recent
discoveries in the pre-sal section.

Projects’ Portfolio:
• Well construction for the pre-salt section (drilling
137 Laboratories
fluids, cement resistance, stimulation techniques,
30 Pilot Plants geomechanical model, liner drilling, well control in the
salt zone, multilaterals).
• Geoscience (chemical stratigraphy, core-log-test
integration, geomechanical model and fracture
distribution, pre-sal imaging, seismic attributes)
• Reservoir Engineering: Recovery optimization
 Thank you!

QUESTION AND ANSWER SESSION

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For more information contact:

Petróleo Brasileiro S.A – PETROBRAS
Investor Relations Department

E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 – 22o floor
20031-912 – Rio de Janeiro, RJ
(55-21) 3224-1510 / 3224-9947