Agência Nacional do PetróleoAgência Nacional do Petróleo
Quarta Rodada de LicitaçõesQuarta Rodada de Licitações
Houston, LondonDecember 11-14, 2001
Giovanni ToniattiDirector
ANP:Challenges and
Achievements inBrazil’s
Upstream Sector
BrasilBrasil Round Round 4 4
Agência Nacional do Petróleo
Source:MME
Current EnergyCurrent Energy Balance Balance
• Energy consumption growing at a higher rate than overalleconomic growth
• Continuation of high dependence on imported energysources
Dependence on External Energy SourcesMM tons oil equivalent/year
Imports
DomesticProduction
Brazil’s Market Potential
l World's 9th largest economyl 2000 GDP ~ US$553 Bn
l Greater than Argentina, Chile,Colombia, and Venezuelacombined
l 170 million peoplel Consumption - 1.8 MMBOPDl Production - 1.4 MMBOPDl Natural Gas - <3% of energy
demand mix
Current Energy Balance
• E&P Activities:Ø Important force for the advancement of the
economyØTechnology Development
• Exploration Activities:ØEssential for the maintenance of reserves and
assurance of future productionØFundamental element in the reduction of
dependency on foreign energy importsØSustained level of exploration activity achieved
through periodic licensing rounds
Power Supply by source (including imports)
Hydro90%
Thermo6%
Nuclear & Others4%
The power crisis scenario
• Generation capacity (1999): 68,000 MW• Power supply highly dependent on hydro,
4,000MW per year new capacity for next 10years
Government actions to assist thePriority Thermal Program
• Assume the exchange rate risk for the imported gasprovided to thermal plants for the next 15 years, forplants that start operation by end of June 2003 (newinter-ministerial ruling, issued June 4th 2001)
• Imported gas will have a fixed value ofUS$2.581/MMBTU during one year.
• Thermal plants gas price will be readjusted yearlybased on two factors (80% exch. rate variation; 20%Brazilian inflation.).
• Gas contracts can be rearranged every 3 years. Thismeans prices and/or supplier can be changed.
• Government has instructed IBAMA to speed up newplant permits
Major opportunity period for everyenergy related business, especially
along the gas chain….
• Gas thermal power plants• Local Gas Distribution Companies• Gas transporters• Gas traders• Gas producers
General Panorama of E&PGeneral Panorama of E&P
activities in Brazilactivities in Brazil
BrasilBrasil Round Round 4 4
ANP - Acreage Bank
AcreageBank
PetrobrasBrasil
Round 1
l12 Blocks Awarded
BrasilRound 4
l 293 Prod/Dev. areasl 28 blocks extendedl 18 blocks partiallyrelinquishedl 69 Blocks fullyrelinquished(40 by contract end)
l54 Blocks On Offer *
Further futureRelinquishments
FutureRelinquishments
BrasilRound 2
l21 Blocks Awarded
BrasilRound 3
l34 Blocks AwardedIncluding some Round 0relinquishments
Brazil’s Brazil’s LicenLicencce Round Historye Round History
• After three Rounds we have achieved:
â67 new exploration blocks under Concessionâ39 Concessionaires, from majors to
independent companiesâInvestments of US$15.7 Billion during
2001-2005*âInvestments in geological and geophysical
research
*MWP and related development and production costsin accordance with work programs agreed with theANP
T O A U G U S T 1 9 9 7 A U G / 9 7 – A U G / 0 1 S e i s m i c 2 D S e i s m i c 3 D S e i s m i c 2 D S e i s m i c 3 D
1 , 1 1 9 . 6 7 5 k m 4 5 , 1 2 4 k m 2 3 2 2 , 5 7 0 k m 1 1 9 , 4 4 9 k m 2
Non-exclusive Surveys
• 71 authorizationsawarded
• 17 authorizations inoperation
E&PE&P Database Database (BDEP) (BDEP)
• 19 registered users• Rock and Fluids Center to be operating in the
second semester of 2003 (port area in Rio deJaneiro)
• Visualization Center will be installed near theSeismic and Wells Center of BDEP, providingconditions to better evaluate Brazil’spetroleum potential
ANP Concessionaire CompaniesANP Concessionaire Companies
• Contracts in the Exploration Phase: 33companies (24 operators)
• Contracts in Development or Production: 18companies (8 operators)
• Concessionaires Total: 39 companies, 26being operators
BrasilBrasil Round Round 4 4Objectives
• Opportunities for companies of differentprofiles
• Continuity of exploration activities alreadyconsolidated in the mature basinsØVery important for regional development
• Stimulate the entry of companies in areas ofless knowledge and greater risk - the newexploration frontiers