The Constant Pursuit of Petroleum Self Sufficiency Presentation to the FIESP 14th International Energy Meeting August 5th & 6th, 2013 Pennsylvania, 1859 Total Depth: 21.2m or 69ft Renato T Bertani President -World Petroleum Council CEO Barra Energia Oil & Gas
BE Business Model In order to build a new Brazilian independent E&P company Barra Energia has adopted the following strategy: Experienced and capable team Initial capital commitment of US$ 1.2bn Target high growth opportunities in proven petroleum basins Strong relationships with stakeholders Position as one of few midcap Brazilian independent E&P companies Barra Focus Area Pre-salt 2
WPC Mission Algeria Angola Argentina Australia Austria Azerbaijan Bahrain Belgium Brazil Canada China Colombia Croatia Cuba Czech Denmark Egypt Finland France Gabon Germany Hungary India Indonesia Iran Israel Japan Kazakhstan Kenya Korea Kuwait Libya Macedonia WPC Member Countries Mexico Morocco Mozambique Netherlands Nigeria Norway Oman Pakistan Panama Peru MISSION The mission of the World Petroleum Council is to promote the sustainable development, production and consumption of oil, gas and other energy resources for the benefit of all Poland Portugal Qatar Romania Russia Saudi Arabia Serbia Sierra Leone Slovakia Slovenia South Africa Spain Suriname Sweden Thailand Trinidad & Tobago Turkey UK Uruguay USA Venezuela Vietnam
Energy Consumption Drivers 241qua BTU 500 qua BTU 670 qua BTU 1 toe = 40 mmbtu +35% Key Drivers Demographics Economic Development Environment Technology Regulatory Framework Source: International Energy Agency, 2012
Industry Deliveries World Oil Resources tn boe Sources: BP Statistical Review, 2012 EIA, Energy Outlook 2011 USGS various assessments 1.00 1.25 1.0 Technology 1.35 1.66 1.7 * Innovation Capital 2000 Now Cum Prod Reserves Resources * Excl Non Conv
The Oil Supply Challenge Reliable & Affordable Supply Source: EIA AEOutlook 2013 REFERENCE CASE 112 88 Unconventional Growth: from 3.9 to 13.1mmbo/day in 2035 (4.6%) Main components: Canada oil sands 4.8 USA biofuels 2.2 Brazil biofuels 1.7 Venezuela extra heavy 1.4 Petroleum Liquids: conventional oil and condensate, tight oil, shale oil, extra heavy oil, natural gas liquids and refinery gains 6 Other Liquids:, biofuels, GTL, CTL and kerogen to liquids
Opec and Non Opec Liquid Production Changes Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains) Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL) Source: EIA, International Energy Outlook Issue: October 2011
Franco Libra Lula Jupiter Iara Sapinhoa Cernambi Carioca Thunder Horse Timber Knotty Head Tahiti Kaskida Ursa Mars Stones Great White St. Malo Volume (Bn Boe) Meters World Petroleum Council Pre-salt Province: The Innovative Thinking Factor Barra s portfolio is centered in one of the most sought after exploration basins in the world Unmatched petroleum system components: Rift phase rich source rock Rift and Sag thick limestone reservoirs Thick salt layer provides perfect seal Local salt layer windows allow hydrocarbon upward migration to post salt turbidites reservoirs Pre-Salt Geologic success ratio (discoveries highly likely to be developed) ~75%, among the largest in any exploration play 12 10 8 6 4 2 - NW 20 km 10,6 10,5 General Regional Geological Section - Santos Basin Terc. Sup. Terc. Inf. Maastrict Camp/San Post-salt Carcará Carioca Salt Pre-salt Rift Sag Lula Mud Line Comparison of ten Largest Accumulations in Santos Basin Vs. Gulf of Mexico 6,5 3,6 3,4 2,1 2.9 1,6 1,5 1,2 SE 0 2,000 4,000 6,000 8,000 10,000 0,7 0,7 0,6 0,5 0,5 0,5 0,4 0,4 Source: : Company Information, Petrobras.
Sustainability Principles Society Regulatory Principles Governance Principles Steady & transparent access to resources Stable and balanced contractual terms Clear HSE rules and rigorous enforcement Promotion of local, yet globally competitive, goods and services Remuneration of risk and capital, assuring shareholder s long term return Return of proportional share of wealth to society Safe operations with positive environmental impact Ethics and transparency as part of the business model
The Case for Self Sufficiency Brazil has a unique opportunity to become a key international energy player for many decades to come Self sufficiency should not be an objective in itself Self sufficiency, and more, will be a consequence of the right policies, investment and innovation
Responsibly Energising a Growing World We hope to see you at the 21 st WPC in Moscow, June 15 th 19 th, 2014