XVIII CONGRESO DEL IIDM and MLA FALL MEETING Puerto Rico - 2013 ALESSANDER LOPES PINTO • Exploration and production of oil and gas offshore are not a recent activity. • The first activities took place in the beginning of last century by adapting equipment and thecnics used on onshore exploration. • Due to technological and operational breakthroughs, resources inaccessible in the past became viable and turned into economically recoverable reserves. BRAZILIAN EXPERIENCE Brazil is currently a world leading reference in oil & gas exploration and production in both deep and ultra deep water. Approximately 90% of Brazil’s oil output comes from offshore fields. More than 130 oil rigs off the Brazilian coastline: Around 40 fixed rigs and 90 floating ones. Brazil’s Oil Output Evolution – 2002/2011 Million barrels/day 2.4 2.0 1.6 1.2 0.8 0.4 0.0 2002 2003 Mar 2004 2005 2006 2007 2008 2009 2010 2011 Source: ANP/SDP • Extension of 800 km. • Up to 300km far from shore line. • Depths between 1,000 and 2,000 mt to the seabed and between 4,000 and 6,000 mt from the seabed down. • Oil reserves may be up to 8,000 mt below the surface of the sea. Maritime Support Navigation: logistic support to vessels and facilities/rigs working in research and exploitation of minerals and hydrocarbons. Maritime Support Navigation figures in Brazil: • 135 Brazilian Navigation Companies (EBN) authorized by the National Agency for Waterway Transportation – ANTAQ; • A fleet exceeding 500 vessels; • Over US$ 2 billion spent on charters in 2012. (Source: ANTAQ) Plataform Support Vessel specialized in oil spill recovery, provided with specifications that allow it to work in the oil spill, in an atmosphere where oil evaporation produces natural gas. Provided with shielded electrical systems to avoid sparkles, these vessels have equipment to aspirate spilled oil and store it in tanks on board. # of Vessels 800 Law 9,432/97 600 400 200 0 1975 1980 1985 1990 1995 2002 2005 2008 2009 2011 2012 2020 Brasileiras Estrangeiras TOTAL 1988 Brazilian Federal Constitution: * To promote free enterprise; * Reserved for the State ownership of certain economic activities considered to be of public interest; * Regulatory Agencies were created with a firm purpose of controlling private enterprise in the execution of public related services; Flexibilization of state monopoly – Constitutional Amendment #9, of 1995. Such Amendment allowed private capital in oil exploration and production in Brazilian territory through the Concession Regime. Law # 9.478/1997 – ‘Petroleum Law’ Petrobras was not included in the National Privatization Program. The National Agency of Oil, Natural Gas and Biofuels - ANP Competence and Attributions: • Implement national policies for the sector; • Enforce good practices for conservation and rational use of oil, natural gas, their byproducts and biofuels; • Consider environmental aspects and demand compliance with requirements regarding environmental licensing; • Deal with federal and state environmental entities, as well as academic and research institutions. With pre-salt discovery a new regulatory model was developed. A new Shared Regime of production for exploitation of the pre-salt fields was created, leading to a new regulatory model. October, 21st/2013 – First bidding round for the Pre-Salt under the Shared Regime. Petrobras being legally granted a minimum participation share of 30% in the consortiuns. Result of the Pre-Salt Bid (Libra Basis): •Winner: Consortium among Petrobras (40%), Total (20%), Shell (20%), CNOOC (10%) e CNPC (10%); • Signing Bonus = BR$ 15 billion; • Exploration Term: 35 years; • Price to be paid by the winner: 41,65% of the oil production profit. National Agency for Waterway Transportation – ANTAQ (2001). • Special autarchic regime. • Integrating the Indirect Public Administration. • Administrative independence and functional and financial autonomy. In Brazil, in order for a navigation company to operate, a public authorization shall be previously granted by ANTAQ. It is ANTAQ’s competence: • Regulate, Supervise and Inspect services of waterway transportation and exploitation of the waterway infrastructure; • Inspect the performance and development of services by navigation companies operating in Brazil; • Authorize chartering of foreign vessels by Brazilian navigation companies; • Apply penalties in cases of non-compliance with the legislation, breach of contract or commercial malpractice by navigation companies.