At Rio Oil & Gas, Petrobras says Lula’s field already produces the same as Colombia
Partnership and risk sharing was key to success
Rio de Janeiro, September 26 – Petrobras’ general contract manager Daniel Pedroso said on Wednesday at Rio Oil & Gas that the partnership established 18 years ago for developing the BM-S block -11, in the Santos Basin, where the Lula field is located, was key for the development of what currently represents the largest production in ultra-deep waters in the world.
“We had an area that was considered as high risk, with a doubtful seismic, infeasible cost of development. The three companies met and risk reduction prevailed back then. The partnership has been the focus of the company, which is prioritizing risk reduction”, explained Petrobras’ executive.
The block was sold in ANP’s Round 2, and the winning consortium gathered Petrobras (65%), BG (25%) and Petrogal (10%). Currently, it includes Shell, after the purchase of BG by the Anglo Dutch operator. In all, the Lula field has 133 wells that produce 829 thousand barrels per day.
“This consortium reaches the production level of a country like Colombia, and we have not yet finished development. We have already reached 1 billion barrels. We expect to reach 1 million barrels per day. We have at least two more decades of a successful story to tell”, said Pedroso.
The Lula field also has part of the Iara area, where the well was drilled with a world record water depth, 580 meters, in consortium with France’s Total. During a speech at Rio Oil & Gas, Arnaud Breuillac, president of E&P at Total, spoke about the relevance of the Brazilian subsalt to the company’s portfolio. Total became the first operator in the region this year upon the acquisition of the Lapa field.
“We expect to significantly increase the daily production of oil equivalent in Total’s assets in the Brazilian subsalt by 2022. We believe that ultra-deep exploration, whether in Brazil or other locations around the world, is extremely competitive”, said Breuillac.
Onshore Development
Besides the subsalt, Rio Oil & Gas has opened room for discussions on the development of onshore basins. In a discussion at the Onshore Forum, the oil & gas secretary of the Ministry of Mines & Energy, João Vicente, drew attention to the potential and need for the development of mature fields in Brazil.
“The country has a huge potential and cannot fail to develop these assets or at least discuss whether to develop them. A key point for the development of the industry is Petrobras’ divestment program. Another point is the permanent offer, which is a unique opportunity for new players with a risk appetite and who can allocate capital for risky opportunities”, he said.
ANP’s director Dirceu Amorelli pointed out that ANP’s actions are focused on adjusting the regulation of each environment and on revitalizing the declining activities of the fields.
Refining
In the last couple of years, the Brazilian oil industry has once again drawn attention and attracted investments, which has prompted the need to discuss possibilities to develop the refining area. Besides, this segment has great potential here, as highlighted by Arlindo Moreira Filho, Petrobras’ general manager of restructuring programs for natural gas businesses, during the special session “An assessment of opportunities in Brazil’s refining area”.
“Brazil is the seventh largest consumer of oil derivatives in the world and the growth trend should continue, unlike what happens in mature markets. To attract new investments in this area, however, some efforts are required, such as ensuring regulatory and fiscal stability, combating fraud and aligning the biofuel and fossil fuel chains”, he said.
Regarding the pricing policy of derivatives, Décio Oddone, director general of ANP, was emphatic about the need for greater transparency. “Today, there is no transparency in how prices are calculated. Prices must reflect the international market and operating costs in Brazil in order to attract investment and generate competition”, he explained. “Only an open, dynamic and competitive market with a diversity of players will allow the increase of domestic production and reduce our dependence on imports”, he added.
Attraction and retention of talents
The future of the oil & gas industry, the need for modernity in the Human Resources areas of companies and the reduction of young people’s interest in operating in this industry was also a subject of discussion on Wednesday at Rio Oil & Gas.
Tatiana Mey, a MIT student, presented an international overview of the scenario, and told a little about her experience abroad, making a comparison with Brazil. “Young people in Brazil believe that this is an old-fashioned, outdated industry – they are short-sighted. They really want to create and work in a company that gives leadership opportunities, that truly believes in meritocracy. ”
According to the student, it is possible to observe that American oil & gas companies are changing their way of communicating. Tatiana observed that the Brazilian industry is beginning to modernize and cited the “Beyond the Surface” campaign, signed by the IBP, in addition to the initiative to promote Oil & Gas Techweek.
Rio Oil & Gas’s complete schedule can be accessed through the www.riooilgas.com.br portal or in the App, available for download on Google Play or the App Store.