Brazil Country-Report August 2011

Brazil Country Report
Prepared by Vitor Azevedo Jr., Oil and Gas Advisor, Brazil
| 2W April 2011 – 2W August 2011|

Brazilian sedimentary basins
Table of Contents
THE BASINS 4
ESPÍRITO SANTO BASIN: 4
SANTOS BASIN: 4
CAMPOS BASIN: 6
SOLIMÕES BASIN 7
SERGIPE BASIN 9
POTIGUAR BASIN 9
PARNAÍBA BASIN 10
JEQUITINHONHA BASIN 11
PELOTAS BASIN 11
PARÁ-MARANHÃO BASIN 12
OIL COMPANIES AND OPERATORS 13

PETROBRAS 13
SONANGOL 17
OGX 17
SHELL: 18
STATOIL 20
REPSOL - SINOPEC 21
GALP 22
CHEVRON 22
BP 22
ONGC 23
BG 23
HRT 24
KAROON 24
CONTRACTORS: 25
MARKET REMARKS: 32
FINAL COMMENTS: 34
SOURCES: 37
The INTSOK Office Brazil is glad to help your company should you require more
detailed information regarding Brazilian market issues. Please contact your local
advisor for further information. Enjoy the reading,
The Basins
Espírito Santo Basin:
[06.09.2011]
New Oil Off Espírito Santo
Petrobras announced several discoveries:
June - new oil in the BM-ES-23 block, in deep-waters. Discovery well, 1-BRSA-926D-ESS,
christened Brigadeiro, drilled by Diamond‟s Ocean Clipper rig. EVD is 4,720 m and 1,899 m
of SWD.
July – new oil and gas block at approximately 4,200 m of drilling depth, 1-BRSA-939-ESS
(Pé-de-Moleque) and 1-BRSA-936D-ESS (Quindim) wells, both drilled by the Gold Star and
Petrobras 10.000 rigs, respectively.
BM-ES-23 Petrobras-operated (with a 65% stake) located east of the Golfinho and Canapu
fields. Petrobras is operator of BM-ES-23, with Shell (20%) and Inpex (15%) as partners.
Both companies plan minimum exploration program in the area. Petrobras intends to send
evaluation plan to National Petroleum Agency (ANP), scheduled May 2013.
[05.16.2011]
Petrobras Onshore In Espírito Santo
In 2011, Petrobras will invest R$ 280 million ($170 million USD) in exploratory onshore
campaigns. Expectations of 49 wells in the North Region, including 12 in hopes of new
reservoirs. Company will acquire seismic 3-D data in the region, already drilling12 wells
onshore since January. Three drilling rigs intended to carry-out campaigns in the northern
part of the state; expectations to increase steam injection capacity in the fields of Fazenda
Alegre and Rio Preto Oeste. Petrobras currently produces from 380 onshore wells in state.
[05.30.2011] [04.18.2011]
Espírito Santo Oil Traces
Petrobras reports discovery traces of oil in the BM-ES-22 block, maintaining working
partnership with mining company Vale, in the basin. The strike occurred at a depth of 2,153
meters in the ES-M-527 area. Petrobras acquired the block in 2004 at the 6th Round of
Bidding. Last year, company sold 25% of the block to Vale with a 10% stake in neighboring
BM-ES-21 block, operated by Petrobras in partnership with Repsol.
Santos Basin:
[08.04.2011] 18h14m / By Felipe Maciel
Piracucá gets FPSO In 2015
Petrobras to start operations in Piracucá Field, (former block BM-S-7 of the Santos Basin) by
2015. Field to get FPSO with production capacity of 25,000 bpd of liquids (oil plus water) and
2 million m3 per day natural gas. Production unit will be anchored in 190 m depth.
Development plan calls for drilling four wells for evaluation, one for contingencies, 2012. Well
completion should take place in 2013 /2014, about the time when reduction system will be
ready for installation. Petrobras project partner, Repsol, estimates initial field development
cost at $490 million USD. Piracucá estimates site volume of 550 million barrel oil, equivalent
(boe). Petrobras operates block with 63% participation. Partner Repsol, holds 37%.011]
17h02m / from the newsroom
Guará Sul Connected
Petrobras reports Guará Sul extension well drilled in BM-S-9, pre-salt of the Santos Basin
with good reservoir conditions and lateral continuity with discovery well.
Pressure monitoring, comparing to discovery well, presently in extended well test (EWT),
confirm the connection.
Company will carry out formation tests to evaluate reservoir productivity. Prospect is 5.7 km
to the south of the pioneer well at water depth of 2,156 m. Guará Sul is 315 km off coast, São
Paulo state.
[07.28.2011] 18h14m / By Cláudia Siqueira
Schahin/Modec Wins Cernambi
Schahin/Modec consortium presented lowest tender run price by Petrobras for the FPSO
chartering for future use in Cernambi area / Santos Basin pre-salt region. Daily rate close to
$610,000 USD. The other competitor group, Odebrecht/Teekay, proposes $1.1million USD
daily rate. Petrobras decided to charter unit with producing-specs of 120,000 barrels/day of
oil and 6 million m³/day of gas, with installation for separating-out CO2 gas..
Petrobras looks to lower daily rate. Negotiations expected to begin August until month end.
Everything points towards oil company establishing $599,000 USD/day, as ceiling.
New Pre-Salt FPSO Partners

Consortium for construction of FPSO Cidade de Paraty will be installed for pilot project in
Lula Nordeste prospect of former BM-S-11 block, located in pre-salt cluster of Santos Basin.
In addition to new partners, SBM Offshore and Queiroz Galvão, who‟ve signed a May 2010
letter of intention with Petrobras to build the unit, Japanese companies Nippon Yusen
Kabushiki Kaisha (NYK) and Itochu Corporation have now entered deal.
Contract to build and lease the unit signed between joint venture and Petrobras. SBM
Offshore, with 50.5% stake, and will continue to be joint venture‟s majority partner; both
slated to build and operate the platform. Queiroz Galvão Óleo e Gás will have a 20% interest,
along with NYK and Itochu‟s minority stakes at 17.5% and 12%, respectively.
Conversion of the FPSO hull will be carried out at Keppel Fels shipyard in Singapore, with
34-month vessel delivery completion.
Lula Well:Most BPD in Brazil
Well designation 9BRSA716RJS, operated by Petrobras in Lula field‟s pre-salt cluster of
Santos Basin, is largest single producer of oil in country. According to data from the National
Petroleum Agency (ANP), May production average 28,400 barrels per day. Well is connected
to FPSO Cidade de Angra dos Reis. Lula – comparatively in May – produced 42,000 bpd in,
making it the 12th largest producing field in Brazil.
Petrobras using only two wells to produce. In addition to the 9BRSA716RJS, well
3BRSA755ARJS, it produced an average of 13,900 bpd of oil in the same month. Goal is to
produce 70,000 barrels per day in Lula by year end.
Panoro Charters Rig For Santos
Panoro Energy, independent Norwegian company controlled by Norse Energy, signed letter
of intent (LOI) with Transocean for charter of semi submersible rig, the GSF Arctic.
Unit will be used for drilling three wells in blocks BM-S-63, BM-S-71 and BM-S-72, located in
shallow waters, Santos Basin. Currently, Sonangol Starfish operates rig drilling wildcat well in
the block BM-C46 (C-M-622). Panoro campaign expected to take place during the first
quarter of 2012. Unit will drill prospects of Sabiá, Canário and Jandáia, but still need
campaign approval from environmental Brazilian agency, Ibama.
Panoro acquired 520 km2 of seismic 3-D studies for three areas. Campaign was done by
PGS which mapped four post-salt prospects, estimates of 880 million barrel. Company says
“enjoying excellent prospects” – enough to raise potential estimates to 1.1 billion boe.
Guará FPSO Under Construction

MODEC, Inc. (MODEC, head office: Chiyoda-ku, Tokyo; president: Toshiro Miyazaki), Mitsui
www.intsok.com | 5
& Co., Ltd. (Mitsui, head office: Chiyoda-ku, Tokyo; president: Masami Iijima) and Mitsubishi
Corporation (Mitsubishi, head office: Chiyoda-ku, Tokyo; president: Ken Kobayashi) have
agreed to invest in building and chartering a floating production, storage, and offloading
system (FPSO) to GUARA B.V, a Dutch company belonging to BM-S-9 consortium
members. The FPSO will be delivered offshore Brazil and used to develop the giant pre-salt
region of the Santos Basin, in the BM-S-9 block (Guara Area) under consortium concession,
comprised of the following three companies: Petróleo Brasileiro S.A - Petrobras (45%), BG
E&P Brasil Ltda - BG (30%), and Repsol Sinopec Brasil S.A - Repsol Sinopec (25%).
Mitsui and Mitsubishi will finalize capital investment in Dutch company Guara MV23 B.V.
(MV23), a subsidiary established by MODEC. MODEC is currently converting the VLCC (very
large crude oil carrier) Radiant Jewel into an FPSO, under the ownership of MV23. At
conversion completion, system will be named FPSO Cidade de Sao Paulo MV23, and
deployed to BM-S-9 (Guara) Block off Brazilian coast with vast oil reserves beneath rock and
salt layers, to a depth of 5,000 meters.
Topsides modules will be lifted and integrated on the FPSO in Brazil. FPSO is scheduled for
4th QTR, 2012 delivery. Will be engaged in oil production for 20 years. MODEC is responsible
for engineering, procurement, construction, mobilization, and operation of FPSO, including
topsides processing equipment, hull and marine systems. MV23's Brazilian local and joint
venture partner in the tender, Schahin Group, considering a certain-share participation as a
shareholder of MV23. Schahin Group plans to stake various operation roles of FPSO.
Drilling In Franco Begins

Petrobras exploration campaign in the Franco block, onerous concession area, granted in
pre-salt of Santos Basin. Sevan Driller rig owned by Sevan Marine - started campaign drilling
well 3BRSA944RJS - reached 6,049 m in waters 1,863 m deep. Gold Star rig presently
carrying-out second well 3BRSA944ARJS – depths expected at 6056m in 1860m water.
Franco block, estimated – by Petrobras exploratory campaign – to have 4.5 billion barrels of
recoverable oil, will be contracted by ANP for oil mapping of the onerous concession areas.
Formation tests carried out by agency identify production potential of around 50,000
barrels/day. Tests prove potential exploration in area and light oil production of about 30°
API.
Campos Basin:
Repsol Takes Over BM-ES-30
Repsol Sinopec acquired 30% share owned by Ecopetrol and Hess Brasil in exploratory
block BM-ES-30, Espírito Santo. Present-area ownership at 40%, currently holds 100% of
the block and will be responsible for operation.
Acquisition indicates Repsol Sinopec will move to second exploratory period of block, drilling
well by 2012. Hess, former owner, drilled block in 2009 - no indication of hydrocarbons. Sold
during sixth round of bidding by the ANP, BM-ES-3 - located northern Parque das Baleias /
Campos Basin, Espírito Santo state.
P-56 Receives Ibama Go Ahead

Petrobras received operational license for P-56 from Ibama. Platform installed in Marlim Sul
field - module 3, at ultra deep waters of the Campos Basin. Company intends to produce the
first oil by the end of August. Production lines being interconnected and processing plant
being tuned. Company on-target to produce 90,000+ bpd with four producing wells by year-
end.
[07.25.2011] 16h08m / from the newsroom
OGX Identifies Hydrocarbons
www.intsok.com | 6
OGX has found hydrocarbons in well 1-OGX-52-RJS, called Tambora, on block BM-C-41 (C-
M-592), in shallow waters, Campos Basin. OGX group owns 100% of block.
Well located approximately 93 km off coast - state of Rio de Janeiro, approximate water
depth of 130 m. The Ocean Ambassabor began drilling July 4th.
Espadarte To Receive A New FPSO
Petrobras should install FPSO Cidade de Rio das Ostras on Espadarte field in the Campos
Basin next year. Unit presently exploiting prospect of Aruanã in block BM-C-36. Responsible
for extended well test (EWT) in well 3-ESP-22D-RJS.
FPSO Cidade de Rio de Ostras went through adaptation works to produce extra heavy oil at
Aruanã. Petrojarl owned, unit chartered to Petrobras for two years, with equal-period renewal
possibilities, at daily rate of $135,000 USD. FPSO has a capacity to produce 20,000
barrels/day of oil - storage capacities up to 150,000 barrels.
BM-S-8 Producing By 2018
Queiroz Galvão Exploração e Produção (QGEP) is working with hypothesis of producing first
oil from definitive system of BM-S-8 block, Santos pre-salt cluster between 2017 and 2018.
Timetable takes into account five to six years of production development after end of the
exploration period, scheduled December of next year. Company looking at purchase of 10%
stake; deal assessed at $175 million USD.
[06.28.2011] 16h35m / From the Newsroom
Aruanã EWT Has Started
Petrobras made June announcement it had started Extended Well Test (EWT) in Aruanã
area, post-salt Campos basin in well 1-RJS-661 in block C-M-401. FPSO Cidade de Rio das
Ostras also located, will produce up to 12,000 bpd, limited by equipment. Prospect C-M-401
located between Pampo and Espardarte fields between 350 and 1500 m depth. Formation
test, executed after well-drilling of 1-RJS-661, in March 2009, indicates signs of oil of 27° API
with recoverable volumes at around 280 million barrels.
New Pre-Salt Discovery
Petrobras‟ announced new light oil discovery, Campos Basin‟s Albacora field pre-salt.
Accumulation found at 107 km off the coast and 3.2 km from the P-31 production platform.
Preliminary estimates of volume indicate new accumulation has potential-volume,
economically-recoverable in order of 350 million barrels. Well 6-AB-119D-RJS, drilled in
water depth of 380 m and reaching total depth of 4,835m, exhibited a 241 m column of oil,
found, of which 104 m in carbonate reservoirs of Macabu Formation with porosity at around
10%. The gas/oil ratio – light oil indicative - measured in samples showing values between
60 m³ and 240 m³.
Petrobras Starts Brava EWT
Petrobras began Extended Well Test (EWT) at Brava prospect, in pre-salt, Campos Basin.
Expected to last two years, daily production of 6,000 barrels. EWT will be carried out at well
6-MRL-199-RJS, connected to P-27, now operating Voador field.
Brava EWT will allow Petrobras to obtain more information about reservoir characteristics for
later development of production. Data is also important for studying characteristics of new
wells in Marlim and Voador fields.
Solimões Basin
[07.19.2011] 17h59m the newsroom
www.intsok.com | 7
TNK-BP Enters Solimões
Petra Energia signed farm-out contract with Russia‟s TNK-BP, giving 45% stake in 21 blocks
in Solimões Basin (Amazonas). Remaining ownership interest with HRT, block operator
there.
Agreement conclusion depends upon HRT Board of Directors approval along with TNK-BP,
and Brazilian National Petroleum Agency (ANP) authorization. Value of the operation not
disclosed. Variable amount performance-dependent on assets acquired.
Degolyer & MacNaughton projects reserves of 783 million boe in blocks. Figures include 11
discoveries in region; expected to start production, 2012.
Tuscany Wins HRT Bid
Tuscany International Drilling won HRT Óleo e Gás bid for charter of work-over rig in
Solimões Basin campaigns. Unit should be delivered September with start of operations in
October. Work-over rig will be used for 3 of the 11 accumulations identified. HRT plans to
announce bid-result for acquisition of eight drilling rigs, for Solimões Basin. Plan is for single
company contract with minimum of one installation in Manaus for unit construction.
[06.06.2011] 19h36m / By Felipe Maciel, from Manaus
Two EWTs In Solimões
Before end of 2011, HRT to start two Extended Well Tests (EWT) in area of 21 Solimões
Basin exploratory blocks. Company seeks to maximize wells for testing.
Production projected to 50,000 bpd by 2015. Currently has three processing plants acquired
from Halliburton for regional oil processing. Part of gas to be re-injected and part burned.
Projected drilling capacity increases - to be accomplished with the nine drilling unit
acquisitions – should allow company to drill around 40 wells per annum in coming years. Will
increase production capacity based on EWT systems. HRT‟s goal to start first EWT in
August, in area block SOL-T-170. System will produce 1,700 bpd; implemented in six months
to a year.
www.intsok.com | 8
Flexible Line
HRT received flexible line bought to convey production of its first EWT, in block BT-SOL-1,
Solimões Basin. Line laid in July, with first oil slated for August.
Company invested $23 million USD in production facilities, including 50 km long flexible line,
used to carry oil to future Tefé River terminal location. Line to be 26 km long. Company
efforts underway to secure project environmental license. Structure will have capacity for
7,000 bpd. Company estimates production of around 1,700 bpd, which will be sold to
Petrobras and delivered in its terminal on the Solim
Sergipe Basin
ANP Approves Starfish Plan
National Petroleum Agency‟s (ANP) Board approved development plan for Aracuã field
operated by Sonangol Starfish in former SEAL-T-462 area, Sergipe Basin, part of the urban
area of Aracaju. Production through1-STAR-5D-SE well.
Sonangol Starfish drilled two exploration well - 1-STAR-5D-SE and 1-STAR-6D-SE. First-well
testing resulted in declaration of the field‟s commercial feasibility. Second, abandoned as dry,
exhibited hydrocarbon traces. Small field area accumulation, created no expectation for
additional structure drilling.
Potiguar Basin
Two New Onshore Fields
Petrosynergy declared two new fields (block REC-T-153, onshore Potiguar basin)
commercially feasible. Fields baptized Uirapuru Sudoeste and Trovoada. Company drilled
two wells in April. No hydrocarbons trace found with structures 1PSY19DBA and 1PSY18BA.
Fields are commercially feasible. Reserve estimates not revealed. Petrosynergy, has a 70%
share, partner Silver Marlim holds 30% share.
New Field In Potiguar Basin
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Petrobras declared commercial feasibility onshore BT-POT-9 block in Potiguar Basin. New
field named Patativa - first commerciality for National Petroleum Agency (ANP) in 2010.
Onshore field, Rio Grande do Norte, picked up by oil company in partnership with Partex,
part of Portugal-based Calouste Gulbenkian group for R$ 215,000, during second round of
ANP bids. Petrobras - operator with 85% interest, remaining 15% ownership balance,
controlled by Gulbenkian.Recôncavo Basin
Stratageo Finishes Seismic
Stratageo finished acquisition of 50 km² of 3D data in the REC-T-196, REC-T-197 and REC-
T-182 blocks, operated by Alvorada Petróleo in Recôncavo Basin. Campaign is largest
acquisition of continuous 3-D carried out in basin. Company preparing data package for oil
group and mobilizing seismic team to carry out 3-D seismic data acquisition in block REC-T-
224, - Gran Tierra is operator in Recôncavo Basin. Mobilizing efforts to follow conclusion of
campaign work, Stratageo foresees acquisition of 37 km² of data. Completion scheduled for
October.
[06.13.2011] 19h17m / From the newsroom
Imetame Finds Oil And Gas
Imetame advised National Petroleum Agency (ANP) oil and gas traces found in cretaceous
layer of first three wells in blocks REC-T-210 and REC-T-211, Recôncavo Basin, Bahia.
Wildcat wells1-IME-1-BA (Acarajé Prospect), 1-IME-2-BA (Caruru Prospect), and 1-IME-3-
BA (Prosperidade Prospect), led to discovery.
First two wells located in Mata de São João (Bahia), with third at Camaçari (Bahia). IME-01
rig, owned by Imetame Energia, carried out campaign. Accumulations and traces of natural
gas and oil were found in all three wells. Two additional exploratory wells – Fé Prospect and
Harmonia Prospect – blocks were acquired during ninth round of ANP, Orteng and Delp,
partners, 33.33% each. Imetame is operator.
Offshore Wells Drilled Onshore
Petrobras will invest R$ 230 million ($144M USD) in resuming production project of the São
João fiel, Recôncavo Basin, Bahia. Will use a Cross rig to drill offshore wells from onshore.
All wells will have high inclination angle to reach offshore reservoirs
Parnaíba Basin
New Seismic In Parnaíba
National Petroleum Agency (ANP) to launch acquisition and processing bid for 42,000 shot
points of 2D reflection seismic on land. Has 10,500 acquisition stations of gravimetric and
magnetometric associated, Parnaíba Basin. Will be carried out in 30 months from contract
signing. Companies interested in competition must prove experience in acquisition of 2,000
km of 2D reflection seismic.
17-05
Parnaiba Basin Wells deliver for OGX
OGX has presented National Petroleum Agency (ANP), through subsidiary OGX Maranhão
Petróleo e Gás Ltda., declarations of commerciality for the Califórnia and Fazenda São José
accumulations discovered in PN-T-68 block within Parnaíba Basin. OGX presented ANP
commerciality declarations for California accumulation. New proposed designations are:
Gavião Azul Field for California, and for the Fazenda São José accumulation, the Gavião
Real Field. Field development plans properly submitted to ANP‟s approval by OGX and
undergoing analysis.
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Hydrocarbons in wells 1-OGX-34-MA and 3-OGX-38-MA, both in PN-T-68 block, Parnaíba
Basin. OGX-34 well, a wildcat well (Bom Jesus prospect) discovered a 23 meters net pay of
gas in two intervals, within Poti and Cabeças formation. Third accumulation discovered in
the region. OGX-38 - first appraisal well in Fazenda São José accumulation discovered by
OGX-22 wildcat. Encountered 43 meters net pay gas in Poti formation, surpassing initial
volume expectations. Exploration of well ongoing.
California and Fazenda São José accumulations will be OGX's first natural gas fields.
Estimated fields will reach production of 5.7 million m³ per day, 2013, for total production of
1.1 Tcf of gas. Natural gas to be produced in this region will be preferentially provided to the
power plants and scheduled for constructiong by MPX Energia S.A., an EBX group company.
In association with Petra Energia S.A., both OGX partners in the PN-T-68 block. MPX has
acquired site to construct power plant in PN-T-68 block. Have secured installation license for
1,863 MW granted by the Secretaria Estadual do Meio Ambiente do Estado do Maranhão
MPX has initiated environmental licensing process for additional 1,859 MW in the region.
Opeator OGX Maranhão Petróleo e Gás Ltda. controlled by OGX S.A. (66.6%) and MPX
Energia S.A. (33.3%), holds a 70% stake in this block. Petra Energia S.A. with remaining
30%.
Jequitinhonha Basin
Ibama Vetoes Jequitinhonha Well
Request denied to Petrobras by Ibama to renew exploratory drilling license of block BM-J-3,
Jequitinhonha Basin. Company planned to new well drilling in Velho Barreiro NW using the
drill rig Noble Paul Wolf (SS-53) in campaign.
Ibama says license rejected because request was made for oil project, different from initially
approved – one that used Manati gas field as reference for presence of gas and condensate.
Also influencing environmental agency decision was legal ruling prohibiting all petroleum
activity in 50km radius of Marine National Park of Abrolhos, and other areas near and south
of Bahia.
New Well In Jequitinhonha

Queiroz Galvão began drilling operations of first exploratory well, Jequitinhonha pre-salt.
Jack-up Offshore Mischief in charge of operation, block BM-J-2. Well 1-QG-5-BAS to be
drilled at 35 m depth, to final of nearly 6,000 m. Sixty to ninety day campaign will focus on
pre-salt reservoirs.
Block BM-J-2 acquired at 4th ANP Bidding Round. Queiroz Galvão has 100% participation of
the asset and the exploratory program agreed upon with agency requires the drilling of only
one well. Offshore Mischief rig contracted Anadarko and Statoil consortium. Have drilled first
wells.
Pelotas Basin
Gas Hydrates In the Pelotas Basin
Geodata Serviços Offshore (maritime branch Georadar), beginning campaign for geophysical
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data acquisition in Pelotas Basin. Campaign (contracted by PUC-RS) designed to identify
gas hydrates presence. Campaign (Geodata initiated) done using the GSO Marechal
Rondon, completed March 2011. Ship was acquired by Georadar in Norway and completely
renewed in port city of Gdansk (Poland). Approx. cost $20 million USD.
Ocean bed studies carried out and settlements samples and column of water were collected.
The project also included
carrying out experimental
program of vertical electric
sounding, the first in Brazil.
Gas hydrates are crystalline

substances ice shaped, formed
on ocean floor through
combination of pressure, low
temperatures and gas presence.
One m³ of hydrate may stores
164 m³ of gas. In Rio Grande
cone, near Rio Grande do Sul
coast, estimates are they may be
found starting at 500 m depth
and 100 km from coastline.
Pará-Maranhão Basin
Spec License For Fugro in Pará-Maranhão Basin
Ibama issued environmental license for Fugro‟s campaign for 2D spec seismic data
acquisition in Brazilian equatorial margin, and in Pará-Maranhão Basin.
License valid until April 1, 2012 and restricted to ship Geo Artic. Fugro campaign could result
from company interest seismic data acquisition following ANP announcement to auction
exploratory blocks of equatorial margin. Marginally explored in comparison to east periphery
of country, region could be very attractive for spec-seismic companies.
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Oil Companies and Operators
PETROBRAS
Ishibras Will Be Revitalized
Petrobras has opened a tender for the modernization and reactivation of the facilities at the
Inhaúma shipyard, formerly named Ishibras, in Rio de Janeiro. The idea, according to the
executive manager for the pre-salt E&P, José Miranda Formigli, is to conclude the works
between August and September of 2012 then start the conversion of four FPSO hulls that will
operate in the transfer of rights area.
The modules construction for the four FPSO‟s and the integration of the respectives modules
will be contracted early in 2012. Petrobras is working on the projects for the modules at the
present time.
Petrobras intends to begin production in the transfer of right areas in 2015. Franco, the first
area in the region to be exploited, is designated to receive and FPSO with 150,000 bpd
capacity. The other units will begin operations in 2020.
[
Three FLNG Offers
August 9th, SBM/Chiyoda, Saipem/Hyundai and Modec/Technip/JGC presented technical
and commercial proposals for the construction of an FLNG-type vessel (a floating LNG ship)
projected for use in the Santos Basin cluster. Only technical envelopes were opened.
Consortium made up of Petrobras, BG, Repsol YPF. Galp Energia coordinating process.
Commercial proposal re-opens August 25th pending no further delays.Technical
classification forecast results disclosed soon, possibly between August 17th and 18th. Ship
designed to liquefy 14 million m³/day of gas. [08.08.2011] 17h20m / By Felipe
Plan to Demobilize Lagosta

Petrobras cost estimates, $11 million USD. Lagosta natural gas field de-commissioning in
shallow waters of Santos Basin, 2019. Based on recently approved, revised development
plan presented to National Petroleum Agency (ANP). Began operations April 2009 with
production level of 1.5 million m³/day. Uses fixed platform in neighboring Merluza.
ANP data shows July production at 1-million m³ per day.
[08.04.2011] 18h00m / By Felipe
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Petrobras charters Helicopters
Petrobras preparing heavy-duty helicopter charter before end of 2011. Company has 94
helicopters, most medium-sized. 77,000 passengers transported July, generating annual
average of 1.3 million passengers/year. Petrobras‟ E&P goal is 120 helicopters by 2020, 50%
large-scale and 50% medium-sized craft. Company expects to increase personnel
transportation capacities to 1.6 million passengers/year.
[08.04.2011] 18h14m / By Felipe
Piracucá Gets FPSO In 2015
Petrobras to start operations by 2015 in Piracucá Field, in former block BM-S-7, Santos
Basin. Will receive a FPSO, production capacity of 25,000 bpd of liquids (oil plus water) and
2 million m3 per day of natural gas. Unit to be anchored at 190 m water depth.
ANP approved development plan calls for evaluation-drilling of four wells and one for
contingencies, next year. Well development completion in 2013 /2014, same time reduction
system to be installation-ready. Repsol, partnering with Petrobras estimates initial
development will cost $ 490 million USD. Piracucá estimates site volume of 550 million
barrels of oil equivalent (boe). Block operator Petrobras - 63% and Repsol - 37%.
Replicating Modules In The Market

Scheduled September Petrobras launch for tender to contract construction and integration of
modules for eight identical FPSO. Known in market as “replicating”, these are planned to
operate in BM-S-9 and BM-S-11 blocks, Santos Basin‟s pre-salt cluster. Except for the
modules and removal of CO², all are identical - despite existence of characteristic variations
in different pre-salt areas.
Petrobras split tender into five packets. First includes modules for flare systems, CO² ,sulfate
removal, water injection, utilities, automation and power generation. Packet two slated as gas
fuel and dehydration modules. Packet three features modules for CO² injection, gas
production flow, compression and steam. Packets four and five slated for oil processing t
produced water treatment, as well as power generation modules.
[08.01.2011] 17h10m / By Felipe
FPSO’s for Onerous Assignment
Petrobras‟ Board of Directors agrees to purchase four VLCC type vessels – oil tankers
conversion be converted into FPSOs for Onerous Assignment (transfer of rights),Santos
Basin‟s pre-salt. Exact payment for hull has not been announced but industry sources report
one VLCC costs-out at or near the $ 30 million USD (R$ 48.30M) mark, for a total order
amount of around US$ 120 million (R$ 193.20 M). Company has scheduled a September
conversion service bid. Bid for unit modules works, integration and construction should be
launched end of 2011 or early first quarter 2012.
www.intsok.com | 14
Petrobras To Invest US$ 224 B
Petrobras Board of Directors approved business plan 2011/2015, totaling US$ 224.7 billion
(R$ 389 billion)
Pre-salt overtakes Post-salt in production development CAPEX
www.intsok.com | 15
P-59 Is Launched In Bahia
The Rio Paraguaçu consortium (Odebrecht, Queiroz Galvão and UTC Engenharia) launched
the P-59 platform in the river, a self-elevating unit built at São Roque yard, Bahia.
Operation, supported by Brazilian Navy and local port authority. Consortium also building P-
60, self-elevating units undergoing same process in next several months. Contract worth
$700 million USD. Calls for two-unit delivery in 2011 / 2012.
[06.14.2011] 18h20m / By Felipe, from
Petrobras inks Floatel for Campos Basin
Petrobras signs $550 million USD with Lauritzen Offshore for Dan Swift floatel lease.
Unit scheduled for July arrival-date in Brazil. Platform accommodates 300 persons and is first
monocolumn-type unit for this type of service.
Petrobras Approves Rig Package
Petrobras' Board of Directors approved bidding process for construction of twenty-one
Brazilian-built drilling rigs. Certification of domestic content (products and services sourced in
Brazil) will be a requirement, with minimum figures specified by the National Petroleum
Agency (ANP). Part of Petrobras' overall strategy to hire twenty-eight new rigs for deepwater
pre-salt filed exploration. Early in 2011, Petrobras awarded a $4.6 billion USD rig
construction package to Sete Brasil for seven deepwater drill ships. First rig operational
expectations set for 2015. Proposal delivery expected in September.
[06.03.2011] 18h51m / By Felipe
Three competing in Prorefam III
Wilson, Sons, Brasil Supply and Navegação São Miguel presented lowest bid prices bid of
third stage of Fleet Renovation Program for Offshore Support (Prorefam). In May 27th
Petrobras received the proposals. Brasil Supply presented lowest price for three AHTS
18.000 and most likely will build them at Eisa shipyard in Rio de Janeiro. Navegação São
Miguel presented lowest price for the PSVs 4.500.
Petrobras/EBN Charters Another 6 Panamax
Petrobras supply area has closed contract with Hidrovia South American Logistics for six
vessels charter of Panamax type. Company will supply five vessels for the transport of light
products such as gasoline and diesel and one for the transport of dark products such as
crude oil, all with a capacity for 63,500 tons. Petrobras concludes second stage of program
contracting 20 oil tankers charter. Contracts valid for 15 years. Vessels should be built in
Brazilian shipyards. Delivery between 2013 - 2017.
[05.20.2011] 19h15m / By
Petrobras Charters Three Rigs
Petrobras contracted another three drill rigs for 3,000 m to begin operations in December.
One is Odfjell and two are Ocean Rig. Total charter cost of $531 million USD (R$ 850 M), the
drillship Deepsea Metro II. In final phase of construction, heads to Brazil in December.
Ocean Rig Mykonos and Ocean Rig Corcovado, at $550 million USD each, will be used in
Santos pre-salt. It will carry out a Greenland campaign, then to Brazil, while Mykonos, in final
phase of construction, leaves Samsung shipyard at beginning final quarter 2011, also
heading to Brazil.
New Petrobras-China Agreements

Petrobras, two agreements of cooperation for business and technology with Chinese state
companies Sinopec and Sinochem. Sinopec made a knowledge-exchange agreement in
geophysics, geology and oil reservoir engineering.
www.intsok.com | 16
Sinochem made agreements for strategic cooperation aimed at business opportunities in
production, exploration, commercialization of oil, and recuperation of mature fields.
SONANGOL
Sonangol Still Betting On Campos
Sonangol is expected to continue proceeding with exploration activity in the BM-C-45 (C-M-
498) block of Campos Basin‟s shallow water. Although no hydrocarbons discoveries were
made in its latest area drilling, the oil company has plans to continue in the region for another
two-year-period.The company is currently evaluating all data collected. At the same time, the
Angolan firm is drilling in deep waters, at the BM-C-46 (C-M-622) block, also located in
Campos, using the GSF Arctic semisubmersible rig owned by Transocean. Campaign
objective is to discover a pre-salt reservoir. Named SKUA-1, the wildcat well will reach 5,625
m in 853.8 m of water. The C-M-622 block is located in the southern quadrant of the
Maromba and Papa-Terra fields, both operated by Petrobras.ExxonMobil
ExxonMobil Has No Plans For BM-S-22
ExxonMobil has no plans defined for block BM-S-22, in Santos Basin pre- salt. Company has
not received new license from Ibama but has recently renewed their existing license. The
license was extended to 2013 and conditions-realization of utilization wells for the Seadrill‟s
West Polaris drill ship. Exxonn has advised National Petroleum Agency (ANP) three times of
existing oil traces in BM-S-22. To date, work has failed to prove existence of discovery.
ExxonMobil, through its Esso Brasil subsidiary, has drilled well (Sabia-1), located 147
nautical miles from the shore at 2000 m water depth,reaching job completion first week of
January. The BM-S-22 block is the only one in the Santos pre-salt cluster not operated by
Petrobras
OGX
Closing In On Waimea EWT

OGX expected to receive operating license from Ibama until end of August for Extended Well
Test (EWT) in Waimea prospect area of block BM-C.-41, in Campos Basin‟s shallow waters.
OGX is scheduling first oil from Waimea near end of October or November. The unit will have
a production capacity of 80,000 barrels per day of oil and gas, compressing 1.5 million m3
per day.
10,000 Bpd from Horizontal well

OGX announced drilling conclusion at horizontal well 9-OGX-39HP-RJS, identifying very
good reservoir conditions. Drilling results of OGX-39 well demonstrate high correlation with
other wells in the Albian section, including limestone sandstone with excellent porosity of
dolomitized and naturally fractured sections, confirming extension of pipeline accumulation.
Following drilling process, a DST was performed indicating production capacity of 10,000
barrels of oil per day with an API gravity of approximately 19°. A selective acidification
process was used in six well intervals, enabling better stimulation of the 1,000 meters
horizontal well extension, maximizing oil flow.
Waikiki Potential Confirmed
OGX has concluded the drilling of horizontal well 9-OGX-44HP-RJS, in block BM-C-39,
Campos Basin. A formation test carried out on the Waikiki prospect confirmed a production
www.intsok.com | 17
potential of 40,000 b/d of oil of approximately 23° API. Block BM-C-39 lies 94 km off Rio de
Janeiro, at 105 m of water depth. The operation includes drilling a directional well (OGX-41D)
2,340 m in-depth. The wildcat well was 1-OGX-25-RJS.
23 Platforms In Campos Basin
OGX plan for development of its first production projects in the Campos Basin calls for use of
23 production units through 2016, of which 12 will be FPSOs and 11 will be fixed platforms.
First five units contracted and will comprise two production systems at the Waimea and
Waikiki prospects, both in basin shallow waters. By 2013, three FPSOs guaranteed (two for
Waimea and one for Waikiki) and two fixed platforms (one for each project). Waimea, located
in BM-C-41 block, will get third FPSO and second fixed platform.
Likley that OSX-4 or OSX-5 FPSOs to be installed in area. Units currently being contracted
and should be converted overseas, with follow-up integration by OSX shipyard - also an EBX
Group company - being built in north Rio de Janeio State‟s, Porto do Açu. All of the other
FPSOs including fixed platforms, scheduled to be built at Porto do Açu. The OSX-6 through
OSX-12 FPSOs will have production capacity of 100,000 bpd and the WHP-3 through WHP-
11 jackets projected connecting-up capabilities to 30 wells. The definitive project for the
Waimea area will contain 42 wells, including 28 production wells and 12 more injectors.
Designed by the oil company, calls for use of three FPSOs and two fixed platforms.
OGX Discovery In Santos
OGX, sole owner, found gas in 1-OGX-30-RJS well located in the S-M-270 block of the
Santos Basin. The company identified a 330-meter high column in the Salvador prospect, an
area contiguous to the Belém reserves, in OGX-17.The OGX-30 well is located 105 km off
the coast of Rio de Janeiro in 150 m of water depth. The Ocean Quest rig, owned by
Diamond, carried out the drilling.
SHELL:
Barra and QGEP In Atlanta-Oliva

Barra Energia and Queiroz Galvão Exploração e Produção (QGEP) plan to repeat their
association and sign a new pre-salt farm-in deal in the Santos Basin by the beginning of
September. The two oil companies did not confirm, but market sources said that the
operation will be in the BS-4 block. This area encompasses two pre-salt prospects plus the
super heavy oil fields of Atlanta and Oliva (13o to 14o API), and a volume in place of 1.7
billion barrels.
The operation was negotiated with Shell, which owns 40% of the BS-4 and would be
supplemental to the BM-S-8 operation that was signed 40 days ago by the three oil
companies. Global Energy learned that Queiroz Galvão would have a 30% stake in the
project‟s operation – its first deep water project (approximately 1,500 m) – and Barra Energia
would have a 10% interest.
Barra Energia is negotiating another farm-in, without the Queiroz Galvão partnership. This
deal would involve a 20% position of the stake owned by Chevron in the BS-4 block. The
remaining 40% of BS-4 is on the Petrobras ownership, wich would have to approve the deal.
Shell sells assets in São Francisco
Vale closed a 40% farm-in deal with Shell for five onshore blocks in the São Francisco Basin
– SF-T-80, SF-T-81, SF-T82, SF-T-83 and SF-T-93. Requires National Petroleum Agency
www.intsok.com | 18
approval (ANP). Secret negotiations began early 2011. Shell will maintain position as
operator with 60%. If approved, will Vale‟s debut in São Francisco Basin. Company portfolio
would then have 24 exploratory blocks spread over basins of Espírito Santo, Pará-Maranhão,
Parnaíba, Santos and São Francisco.
Shell Leaves Santos Cluster
Queiroz Galvão Exploração e Produção (QGEP) and Barra Energia purchased, each, half of
the 20% stake that Shell Brasil owned in the BM-S-8 block, where the Bem-Te-Vi is located.
The agreements, dependent upon National Petroleum Agency (ANP) approval, represent the
pullout out of the Anglo-Dutch oil company from the Santos pre-salt cluster. In 2008,
Petrobras confirmed the discovery of oil in the pre-salt reservoirs of the block. The wildcat
well was drilled in 2,139 meters of water, reaching a final depth of 6,773 meters. The
Brazilian company is the operator of the area with a 66% stake, with Shell (20%) and Galp
(14%), as partners.
Shell Buys Wellheads
Shell acquiring 26 wellheads from GE Oil & Gas in a deal worth about $30 million USD
through end of 2013. The agreement calls for delivery of 13 MS-700 Simblore and 13 MS-
700 systems for deep-water. Most equipment to be produced at GE plant located in Jandira
(SP) Deleveries starting September. In Brazil, GE has already delivered more than 300
wellhead systems to 11 operators.
Abalone Stopped Until 2013
Shell operated Abalone field in Parque das Concha, located in Espirito Santo part of the
Campos Basin will have production halted through January 2013. The aim is to carry out field
maintenance. Parque das Conchas covers fields of Abalone, Ostra, Argonauta- B-West and
Nautilus. Shell has 50% participation in the area, with partners Petrobras (35%) and Indian
state oil company ONGC (15%). System production expectations between 80,000 b/d and
100,000 b/d of oil
Shell Seismic In São Francisco

Shell plans 2D seismic mapping in São Francisco Basin this year. Work should last four to
six months. Parallel to licensing process, contract negotiations with seismic company are
moving ahead. After data collection, Shell will define if it moves ahead with second stage of
minimum exploratory program. Requires drilling total of five wells in the region, one per block.
Contrary to other areas under concession in the São Francisco Basin, Shell‟s blocks are
located in a complex region with large number of caves, archaeological sites and rural
communities.
www.intsok.com | 19
STATOIL

New Signs in Peregrino
Statoil has found traces of oil in the Peregrino field, in older area of block BM-C-7, Campos
Basin. Extension well 3STAT5DRJS drilled by the Blackford Dolphin rig and reached a depth
of 2409 m in waters 121 m deep.
A May 2011 company announcement of two wells in southern part of field, part of second
stag, “Peregrino South” – estimated to have between 150 million and 300 million barrels of
recoverable oil. Peregrino oil field productions being April, increasingly gradually to 100,000
boe/day.
Statoil Contracts Study
Statoil Brasil has closed a contract with Technip to prepare study for concept and design of
future fields and production development in company owned areas. The three year contract
will be carried out by company‟s center of operations, Rio de Janeiro.
The Norwegian oil company recently began first production (in Brazil) from the Peregrino
field, Campos Basin.
www.intsok.com | 20
Repsol - Sinopec
Repsol: New Well In The Pre-Salt
Repsol Sinopec management team approved new exploratory well-drilling proposal in block
BM-C-33. Significant discovery of oil in the pre-salt, Campos Basin recently announced.
Called the Pão de Açúcar, the prospect will have an estimated cost of $69.2 million USD.
Additional expectations to carry out production testing in area, budgeted at $15.4 million
USD. Block‟s pre-salt discovery was announced end of June, after the drilling of the Gávea
prospect (1-REPF-11A-RJS), sunk by the Stena Drillmax I rig.
Brazil‟s exploratory program summary for 2H2011, follows:
(*) Not completed until 2012

Company management waiting for proposal ratification by the Board of Directors before
taking project to partners. Repsol-Sinopec is operator of BM-C-33, with a 35% share, with
Statoil (35%) and Petrobras (30%), as partners.
www.intsok.com | 21
GALP
[05.04.2011] 17h41m / From the Newsroom, with Agencia Reuters
Galp to raise $3B USD in Brazil
Portuguese oil company Galp Energia has hired Bank of America Merrill Lynch, JPMorgan
and UBS to raise $3 billion USD through sale of a portion of its Brazilian unit. Galp plans to
raise at least $2.95 billion USD to help finance part of its large field development in Brazil‟s
pre-salt. For any buyer, new shares representing at least 20% of the Brazilian subsidiary, will
be offered. According to the Portuguese newspaper Diário Econômico, the Spanish refining
company Cepsa and the Chinese companies Sinopec, both PetroChina and CNOOC have
expressed interest in Galp-Brail share purchases.
Galp is a minority shareholder with Petrobras, co-working important discoveries of offshore
Brasilian areas, including the vast Lula, Cernambi and Lara Fields. Analysts are questioning
Galp‟s ability to finance its part of the projects, where extraction of oil will take place in areas
up-to 7,000 m deep.
Chevron
[06.16.2011] 14h28m / By Felipe Maciel, from Macaé
Frade Nearing 90,000 Bpd
Chevron has reached production of 70,000 barrels/day at the Frade field, located in Campos
Basin deep waters. Frade, 2years in production and close to reaching peak, projected at
90,000 barrels/day. Chevron, field operator, with a 51.7% stake, Petrobras (30%) and
Japanese shareholders through Frade Japão Petróleo (18.26%).
BP
BP Returns To Brazil’s Offshore
BP first campaign in the Brazilian offshore since it left Foz do Amazonas, 2005. Well
3BP4ESS being drilled by ENSCO DS-4 rig in block C-M-61, in pre-salt, Campos Basin,
Espírito Santo 4,975 m in waters and 1,426 m deep. BP to analyze Itaipu discover, made in
pre-salt block area. Devon responsible for the operation of the asset. Drilling operation
epected to run for three months.
[05.10.2011] 19h28m / By Felipe aciel
BP Back In Brazil
National Petroleum Agency (ANP) approved acquisition of Brazil‟s Devon Energy‟s assets by
United Kingdom‟s BP. Deal worth $7 billion USD. Request for assignment of Devon‟s rights
reached sagency last June, two months after largest oilfield catastrophe in the U.S. history.
Concession
Concession Basin Operator Award Year
holder(s)
Anadarko 30%
BM-C-30 Campos BP 25% Round 6
Anadarko
(Wahoo) Basin IBV Brasil 25% (2004)
SK 20%
Exploration BP 40%
BM-C-32 Campos Round 6
BP Anadarko 33.33%
(Itaipu) Basin (2004)
SK 26.67%
BP 30%
BM-C-34 Campos Round 7
BP Petrobras 50%
(Fragata, C-M-471, C-M-473) Basin (2005)
Maersk 20%
Campos Petrobras 65% Round 7
BM-C-35 Petrobras
Basin BP 35% (2005)
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Camamu-
Round 7
BM-CAL-13 Almada BP BP 100%
(2005)
Basin
BP 40%
Parnaíba Round 9
BT-PN-2 BP Petrobras 40%
Basin (2007)
Vale 20%
BP 40%
Parnaíba Round 9
BT-PN-3 Petrobras Petrobras 40%
Basin (2007)
Vale 20%
Campos BP 60% Round 2
Polvo (former BM-C-8) BP
Basin SK 40% (2000)
Development / Petrobras 41.175%
Xerelete Campos
Production Petrobras BP 17.65% Zero (1998)
(Former BC-2) Basin
Total 41.175%
BP in Brazil:
BP's return to exploration and production operations in Brazil adds to investments being made
by other BP Group companies in Brazili including biofuels, lubricants and aviation fuels,
highlighting the strategic importance of Brazil for BP.
BP companies are now present in nine Brazilian states and the Federal District.
Castrol, BP's lubricants business, established lubricants plant in Rio de Janeiro in
1957,where it manufacture wide variety of engine and industrial equipment lubricants.
Air BP, the BP Group aviation fuel unit, began Brazil operations in Brazil in 2002.
Supplies aviation fuel at 13 airports in five Brazilian states and Federal District.
BP Biofuels has operated in Brazil since 2008, through 50 per cent subsidiary Tropical
Bioenergia. First oil company to produce ethanol in Brazil. BP announced (March 2011)
agreement to acquire controlling stake in CNAA (Companhia Nacional de Açúcar e
Álcool), expanding in country presence.
Prior to the Devon acquisition, BP carried out exploration activities in Brazil during the
risk contract phase in the 1970s and 1980s, and under concession regime from 1999 to
2005. BP acquired seismic data in Santos, Amazonas, Paraná and Foz do Amazonas
basin. Drilled seven wells in Santos and Foz do Amazonas basins.
ONGC
ONGC Initiates Operation
Indian oil company ONCG has begun first drilling campaign in Brazil‟s offshore fields as
operator. Drilling well 1ONGC1SPS in block BM-S-73 (S-M-1413), Santos Basin, reaching
final depth of 3,660 m, in waters 1,630 m deep. Block BM-S-73 acquired by ONGC during 9th
Round of bidding of the ANP, held in 2005. In January, the oil company granted Petrobras
and Ecopetrol 56.5% share in the block. Brazilian company has 43.5% in the area,
Colombian company has 13%. The deal was approved by the ANP.
BG
BG Brasil Makes Grants For R&D
BG Brasil will finance 450 scholarships for students and researchers in universities outside of
Brazil, in addition to providing internships in oil and gas and creation of ecological institutes in
Brazil. A letter of intent signed June 21 with Council For Scientific and Technological
Development (CNPq) and Ministry of Science and Technology.
www.intsok.com | 23
The project calls for an outlay of $17.5 million USD over the next 5 to 8 years, and is part of
an investment plan of $1.5 billion USD in R&D/Brazil through 2025. The company hopes to
be producing 550,000 boe/d by 2020.
BG: US$ 70 B For Exploration
BG do Brasil, one of Petrobras partners in pre-salt projects, estimates well drilling in Guará
and Lula fields will require up to $70 billion USD over next few years. The projection was
made by Nelson Silva the president of BG in Brazil, and based on the present average
drilling costs for wells in that region.. Based on a simple calculation we see that investments
could reach $70 billion USD”, said Silva during a presentation at the Polytechnical School of
São Paulo University (USP).
HRT
Friday, August 12, 2011 Dow Jones Newswires by Diana Kink
HRT Plans to Drill 65 Wells by End-2014
HRT Participações em Petróleo, plans 65 exploration wells and develop production at 52
HRT has a cash position of 2.2 billion Brazilian Reais ($1.37 billion USD) to finance its
development program.
Karoon
[05.05.2011] 19h20m / From The Newsroom
Karoon Charters Rig In Brazil
Karoon has signed a letter of intention with Dolphin Drilling to charter the semi-submersible
rig Blackford Dolphin. The Australian oil company expects to conclude negotiations for drilling
activity in 3Q,2011. The wells lie 280 km off the coast of São Paulo, at 400 m water depth.
It‟s projected that rig-drilling will be announced by the end of this year, once interpretation of
the seismic data is completed. Karoon holds 100% of the cells S-M-1037, S-M-1101, S-M-
1102, S-M-1165 and S-M-1166, all of which are located in the Santos basin. Areas were sold
during the ninth round.
www.intsok.com | 24
Contractors:
Saipem / Hyundai in FLNG pole position:
The Saipem / Hyundai consortium had the lowest price in Petrobras competition to build a
FLNG vessel type destined to the Santos cluster, with the proposal of U$D 3.29 billion. The
value presented by the Italian-Korean group beat out bids from Modec / Technip / JGC, with
the total price of U$D $ 3.8 billion, and SBM / Chiyoda, worth U$D $ 4.8 billion.
The envelopes for prices were opened in August 25th . It is expected that the consortium
Petrobras, BG, Repsol and Galp Energia, which coordinates the process, disclose the results
of bidders ranking by early of September. The price offered by Saipem / Hyundai was well
perceived by Petrobras and its partners. Apparently, as soon as confirmed the technical
ranking of the participants, the oil company should recall the company well positioned in the
final result, to negotiate a lower price for the value proposition. Despite of rumors about a
possible bid process cancelling, Petrobras still ensures that the process follows as expected
according Maria das Graças Foster, Energy and Power‟s director. The motivation for such
thinking is due to the recent decision to postpone the FLNG project, by using the Route 3
project as alternative.
RollsRoyce Center For Rio

Rolls Royce is planning to build in Rio de Janeiro, its fifth worldwide training center.
Investments have initially been budgeted at US$ 60 million and the final decision will be
made in the next six months. The CEO for South America, Francisco Itzaina, announced the
information. The center will be equipped with the latest state-of-the-art machines and
simulators in order to qualify its owns employees and clients in several tasks to the
maintenance and operations for Rolls Royce equipment.
NOV Pens $1.5B Deal for 7 Drillship Equipment Packages

National Oil well Varco has signed contracts to supply drilling equipment packages for seven
drillships to Estaleiro Atlantico Sul ("EAS"), including drilling riser and pressure control
equipmen, valued close to $1.5 billion. Brazil's extraordinary deepwater discoveries have
transformed it into one of the most significant offshore markets served and is largest single
order secured by NOV in its 150-year history.
OSX Announces Business Plan
OSX announced operational plans for the 2011/15 period. The main item of the planning is
the beginning of the construction of its Naval Construction Unit in São João da Barra (Rio de
Janeiro). In its first phase, the shipyard will have a capacity to take on up to six FPSOs and
build up to eight fixed platform simultaneously, with processing capacity up to 220,000
tons/steel per year. Total of all contract could reach $30 billion USD (R$ 46.5 B),$ 4.8 billion
USD (R$ 7.4 B) already contracted in-house.
Schahin/Modec Wins Cernambi
The Schahin/Modec consortium presented the lowest price in the tender run by Petrobras for
the chartering of an FPSO to be used in the Cernambi area in the Santos Basin pre-salt
region. The daily rate will be about $610,000 USD. The other competing group,
Odebrecht/Teekay, proposed a daily rate of $1.1 million USD. As expected, Petrobras
decided to charter the unit with a specification for producing 120,000 barrels/day of oil and 6
million m³/day of gas, with the installation for CO2 gas separation. The tender required the
proponents to present a price proposal for two different FPSO types. Petrobras will try to
obtain a lower daily rate. Negotiations on going process and expected to be closed until
September. Everything points to the oil company establishing $599,000 USD/day as ceiling.
www.intsok.com | 25
Wellstream - Aker Wayfarer In Brazil
The Aker Wayfarer, chartered by Wellstream from Aker Solutions, has arrived in Brazil. The
ship will be responsible for laying of Waimea prospect production lines, operated by OGX
located in shallow waters of the Campos Basin‟s BM-C-41 block. Vessel currently docked at
the Mauá shipyard in Niterói (Rio de Janeiro). OGX is scheduling to bring out the first oil from
Waimea in October. The FPSO OSX-1, currently undergoing refitting and customization at
the Keppel Shipyard in Singapore, will exploit prospect. The unit has capacity to: 42,000 bpd
liquid processing, 40,000 bopd processing, 60,000 pbd water injection, 53 mmscfd gas
compression, 950,000 bbls storage capacity and has installed a STP mooring system.
OSX - OSX-3 Will Cost $800 Million USD
OSX has signed an $ 800 million USD contract with Modec for construction of FPSO OSX-3
to be installed in shallow waters, at Waikiki Prospect in Campos Basin‟s block BM-C-39. The
contract calls for the unit to be delivered third quarter 2013 by the shipyard in Singapore. The
FPSO OSX-3 will have a production capacity of 100,000 bpd of oil and store 1.3 million
barrels. OSX is presently preparing for project bidding of FPSOs OSX-4 and OSX-5,
engineering and integration.
Sapura Up Front For The PLSVs

Malaysia „s Sapura Crest Petroleum presented the best commercial proposal for six vessels
charters of PLSV type, used for launching Petrobras flexible lines. Sapura obtained the best
classification in five of the six lots auctioned. The lots corresponded to the acquisition of 550
t, 300 t and 200 t vessels, of which three lots are for the rent of one unit and three for the rent
of two units.
[07.07.2011] 19h14m / By Ricardo Vigliano
Siemens Deciding Investment
Siemens has initiated preparations to install a Brazil-based plant for offshore compressor
production. The investment could be decided before the end of this year if the company wins
a Petrobras tender for equipment supply to the replicating, pre-salt based FPSO‟s. The
company already has begun developing lists of suppliers and is training product-engineering
teams.Could have either Sao Paulo or Rio de Janeiro locations. The investment is estimated
at about $50 million USD.
Technip increases the workforce by 40%
Technip increasing workforce by more than 40% in Brazil, from 2700 employees in 2010, to
3900 employees in 2011. New jobs in engineering and construction, including both onshore
and offshore, underwater construction and the manufacture of flexible lines.
Short run requirements include increase of 2 to 5 support ships by the end of the year.
Technip will be receiving six additional ships in medium term for Petrobras contract work.
the start of the concession to operate the Porto de Angra and the startup of a new facility for
the manufacture of flexible lines that the company will build in Angra dos Reis, Rio de
Janeiro, state
Oliver Valves - Supplying P-58 & P-62
British firm Oliver Valves has closed a deal with UTC to supply block valves for processing
plants of Petrobras´ P-58 and P-62 platforms, operated in Campos Basin. Deal closed at
£ 7.2 million ($11.5 M USD). Unit delivery expected to begin 36 months out, callingn for 391
valves of the double block type, with two balls manufactured in carbon and super duplex
steel. As Brazil market heats-up, company plans to install manufacturing plant in the country
www.intsok.com | 26
by the end of 2012.
FMC - Spools For Tambaú Field
FMC Technologies will deliver five spools to connect manifolds at the Tambaú field, Santos
Basin.The Tambaú field is part of a complex located at the former BS-500, where Petrobras
already produces through the Uruguá field. The FPSO Cidade de Santos will exploit two
areas and be connected to eleven wells.
New base
FMC seeks area for setting-up a new after market base. The company to analyze locations
for the facility. Construction of a new base, similar to one in Macaé, would require a near $50
million USD investment.
GE inks Petrobras Service contract

GE signed contract worth $120 million USD with Petrobras for maintenance, repair and
modernization of Petrobras equipment in Campos Basin deep waters.The four year contract
aimed at repairs on 300 exploration equipment, 250 production equipment, and upgrades for
six wet Christmas trees per year. To meet contract requirments, GE will invest $30 million
USD to revamp its Macaé based service center (Rio de Janeiro).
[06.15.2011] 15h29m / By Felipe from
Wellstream Provides Pre-Salt Base
Wellstream signed a contract with Petrobras for $200 million USD to provide a logistics base
to supply flexible lines for Santos Basin operation - specifically pre-salt. The contract was
signed in June.The company, recently acquired by GE, will invest around $90 million USD in
its Niterói, Rio de Janeiro state plant for logistics base construction. The contract calls for
storage, use and maintenance of the lines for five years, and may be extended for an
additional five-year period.
Vescon To Invest US$ 20 M
Vescon Equipamentos Industriais has finished modernization plans of its Salvador, Bahia
industrial plant. Investments total $15million USD and $20 million USD between 2012 and
2013 to meet expanded production capacity. Vescon delivers around 100 sets of Christmas
trees and wellheads every month. When the expansion is complete, production will increase
to 210 units/month.Vescon has signed a contract with Petrobras for supply of six special sets
of wellheads for CO2 reinjection project in Recôncavo Basin‟s Miranga field. Equipment will
be manufactured by the Bahia company.
DHL Plans O&G Bases
DHL is planning to establish two logistics bases in Brazil aimed at serving the oil and gas
market. The units – points of support – to receive and send items destined for the offshore
operations in the Campos and Santos Basins. The projects will be set up between 2012 and
2014.The Santos base will occupy a larger area, and could be used for handling large
equipment, including platform modules. This asset may be a wholly-owned operation of the
company.
Pellegrini supplies cranes to Replicating
The Italian company Pellegrini won competition to supply cranes to replicating FPSOs
currently under construction in the Rio Grande (Rio Grande do Sul) shipyard. Contract is for
acquisition of 20 25 ton/ 25 m cranes for around $30 million USD. The units will be built in
Brazil. The cranes will be supplied over a 5-year period with local content increasing
progressively. The first of the units will be delivered in 18 months with a local content
www.intsok.com | 27
requirement of 20%, corresponding to the assembly of the unit. Over the length of the
contract, increases will reach local content of 65%.The Italian company plans to build a Brazil
plant for crane manufacturing. Petrobras estimates a market potential of 200 offshore cranes
in the coming years, including new ships and the modernization of older units.
NKT To Install Plant In Brazil
NKT Flexibles will set-up a flexible pipe factory in Brazil between 2013 and 2014. The plant is
projected to meet extension of supply agreement with Petrobras and will supply up to 694 km
of pipes between 4″ and 8″ to water depths of up to 2,000 m. The business is worth € 1.3
billion ($1.85 B USD) and is valid from 2012 to 2015. The agreement includes the supply of
dynamic systems of flexible rises, flexible flow lines and jumpers and accessories for
configuration of subsea pipe systems.
[05.20.2011] 15h45m / By João Montenegro
BMT Wants To Expand In Brazil

BMT Scientific Marine Services is planning Brazil projects responsible for at least 30% of its
global annual revenue in five years time – an increase of 25%. For this, the company, which
offers offshore structures monitoring services is studying the transfer part of assets
developed at U.S.A subsidiary for export to Brazil. According to Craig Campman, the
manager of BMT in Brazil, the aim of the company is to increase its business volume with
Petrobras and engineering companies in the country. Intention is to begin manufacturing of
first subsystems in Brazil by year end.
Odebrecht Contracts Forship
Odebrecht O&G has signed a contract with Forship, providing services to the Peregrino field
in the Campos Basin. In addition to commissioning, contract includes maintenance and
upkeep of the projects that Odebrecht O&G in carrying out onshore and offshore.
Odebrecht O&G is responsible for the modification and maintenance of the Peregrino field for
two companies, Statoil Brasil and Maersk FPSOs Brasil
O´ Brien´s Arrives In Brazil
O´Brien´s, a crisis management company, will set up a unit in Brazil by the end of October.
The US based company will sign a long term contract with Petrobras for crisis management
of accidents. O´Brien‟s provides preparation, response, communications and recovery
services for accidents. In Brazil, the company has already provided consulting services to El
Paso, Devon and Anadarko, and has conducted emergency simulation exercises with
Petrobras.The company is part of Seacor Holding, which controls two Brazilian subsidiaries -
Seacor Offshore, providing offshore support services from Macaé and Era Helicópteros.
[05.03.2011] 19h35m / By Ricardo Vigliano, from OTC 2011, Houston
Dresser to have a Brazil Unit
DresserRand plans to install unit for maintenance and repair of large turbines and a
compressor assembly plant, located in Campinas (state of São Paulo). The objective is to
meet the minimum national content requirements of Petrobras for supply of turbo equipment.
Company has already initiated talks with 50 component suppliers. Included among parts
which could be manufactured in Brazil, are lubrication systems, sealing systems, startup
motors filters and skids. Generator repair plant will be used for turbines of more than 50 MW
and will be developed by Leading Edge, a company that was purchased by Dresser in 2010.
Replicating FPSOs Use Tognum

Engevix has signed a contract with MTU do Brasil, a subsidiary of Tognum, supplying 16 sets
www.intsok.com | 28
of generators for eight FPSOs being built at the Rio Grande shipyard. The first equipment will
be delivered during the month of September. The construction of the first unit will be
completed next year.
The FPSOs to be used by Petrobras in Lula field in former block BM-S-11, followed by Guará
prospect in block BM-S-9, both in pre-salt cluster of Santos Basin. Lula will receive six units
and Guará will receive remaining platforms. All of FPSOs will have a production capacity of
150,000 bpd of oil.
Cummins Plant To Startup In 2013

Cummins plans to begin new generator factory activities by January 2013. The plant still with
location undecided will have capacity to produce approximately 10,000 units per year. The
new installations will allow company to double capacity for production of generators, totaling
about 5,000 units a year. Cummins intends to invest more than $100 million USD for new
installations and to revitalize existing Guarulhos factory (São Paulo).
www.intsok.com | 29
Government:
11th Round will have 174 Blocks
National Energy Policy Council (CNPE) approved scheduling 11th round National Petroleum
Agency (ANP) bidding, offering 174 exploratory blocks in nine sedimentary basins along the
Brazilian equatorial margin. Auction focuses on mature basins and new frontiers, excluding
those areas close to pre-salt region.
Foz is the highlight

The ANP estimates that it will bring in a minimum of R$ 200 million ($126 million USD) in
signing bonuses during the 11th Round of bids. In total, 122,000 km² will be offered, in an
exploratory area divided into 17 sectors.The Foz do Amazonas Basin, so far without proof of
commercial viability, will be the highlight of bidding, with a 32 block offer in two sectors:
SFZA-AR2 and SFZA-AP2..
[08.05.2011] 19h06m / By Gabriel Gomes
Points For Local Content
Marco Antonio Martins, the secretary for Oil, Natural Gas and Renewable Fuels of the
Minister of Mines and Energy (MME) says in early August that the ministry is working to add
gratification system to the public call notice of the 11th Round of the National Petroleum
Agency (ANP). The bids for companies are to exceed the targets of local content in
exploration phase. The company exceeding the indexes will be credited with points of
additional consideration for future bids. Points could be used by companies participating in a
consortium in future bids, proportional to their group shares.
First Local Content Fine

The National Petroleum Agency (ANP) should issue first fine for failure to comply with local
content in 44 blocks acquired by Petrobras during 5th and 6th Bidding Rounds. Estimated at
approximately R$ 30 million ($19 million USD) the infraction should be officiated until end of
August. Petrobras does not intend to appeal decision again. The Local Content Coordination
Technical Area of regulatory agency finalized the evaluation of Petrobras‟ first appeal and
then sent its opinion to the agency‟s legal department. The value of the fine was not
determined yet. For its part, Petrobras will have 15 days to make the payment after the fine is
issued. The blocks are distributed over 18 concession areas in the Espírito Santo, Potiguar,
Recôncavo, Santos, Campos and Foz do Amazonas Basins. Another 25 blocks are being
evaluated by the ANP. Shell, Petrosynergy, Petrogal and Maersk operate the areas under
assessment with processes currently at initial phase.
ANP To Transmit Meetings
The National Petroleum Agency (ANP) should begin to transmit its board meetings via the
Internet . The decision to make the regulatory agency‟s meetings public won approval last
June. The instructing regulation, however, calls only for transmission over the Internet and
not the public participation of society at live events. The deadline for measure approval takes
into account required time to hire a company to transmit meetings.
Amazonas: O&G Industrialization
Master plans for cities that are strategic to the O&G industry in the state of Amazonas,
located in the Amazonas and Solimões Basins, already foresee the formation of industrial
centers necessary to meet the needs of the private oil and gas companies. Those will set up
in the region in the coming years, said Daniel Nava, State Secretary of Mining, Geodiversity
and Water Resources.
www.intsok.com | 30
According to Nava, besides Manaus industrial center, cities such as Rio Preto da Eva,
Itacoatiara, Itapiranga, Coari, Carauari, Jutaí and Tapauá have already begun infrastructure
projects to receive oil industry production chain companies. The expectation is that by 2013,
and the conclusion of the Tucuruí-Macapá-Manaus long transmission line and subsequent
connection of cities to the national electricity grid, centers will effectively begin to be
established.
R&D Clause Changes
The National Petroleum Agency (ANP) is currently evaluating the proposals made by the
Brazilian Oil, Gas and Biofuels Institute (IBP) seeking changes to how R&D funds are
managed for future contract concessions . Changes being sought include extension of fund
payment deadline, investment-increase possibilities, and reduction in red tape involved in
rendering accounts process for concession holders.
First proposal answers to concession holders‟ requirements for payment of investment
quotas, will be by June 30 of year following calendar year of the quarter in question.
9h50m / By Ricardo Vigliano, from OTC 2011, Houston
Local Content Also In Production
The National Petroleum Agency (ANP) will begin to inspect local content percentages during
production phases. The first project for inspection will be Polvo, owned by BP in the Campos
Basin. Prior to this, and to interpretation problems, the agency will need to change legislation
text. Current legislation states failure to comply could be penalized at the end of the
development plan. For agency, that moment occurs upon the installation of each production
module; for operator, this inspection comes 27 years after the concession was awarded.
According to ANP director Magda Chambriard, the change in the text seeks to better define
this moment within the context of the law. ANP identified non-compliance in the local content
index during the exploration phase in 69 blocks. Deadline for operators to present their
reasoning was June 16.
www.intsok.com | 31
Market remarks:
08-Aug
New Technologies for exploration
Petrobras CEO, José Sergio Gabrielli, believes the company is strongly interested in
development of new exploration technologies within the country. He confirms that process is
underway and should be accomplished in the short term. "By 2017, we keep the model
(exploration) we already know,” says Gabriell, “But we also know that this model will be
overcome. Among the technologies examined are alternatives for subsea separation of oil
and water. Another consideration is the use of seawater for re-injection operations. The
priority of Petrobras is finding ways to reduce weight and increase the process efficiency on
the surface, from the adoption of new materials, with the application of nano-particles and
chemical transformation of products. This model will allow even a better ships operation,
which would have capacity improvement.
08.04.2011] 18h27m /the newsroom
IOCs Increase In Brazil
In June, private companies achieved their greatest production of petroleum reported in fields
not operated by Petrobras, a total of 200,000 barrels per day. The daily average was 9.3%
greater than the 183,000 barrels per day reported the previous month, and 20.5% greater
than last year‟s average of 166,000 barrels per day. Shell registered the highest production,
with 84,000 barrels per day in Ostra, Argonauta, Bijupirá and Salema. Frade, operated by
Chevron, remained as the non-Petrobras operated field leader, racking-up the highest
individual production, a total of 67,000 barrels per day. In Peregrino, Statoil produced 24,000
barrels per day.
54 Production Systems By 2020
The new Petrobras Business Plan (2011/2015) sets as a target for its E&P area the
installation of 54 new production systems through 2020. By 2015 alone, some 19 systems
will be built, ten (10) of which in post-salt areas, eight (8) in the pre-salt and one (1) in an
onerous assignment section (Franco), raising the company‟s production capacity to 2.3
million bpd. Between 2015 and 2020, there will be another 35 production systems put into
operation. To get an idea of the size of the challenge facing Petrobras, the Campos Basin,
under development by Petrobras since the 1970s, (for example) has about 50 production
units installed.
Also scheduled are 30 new extended well tests (EWTs) for the next five years,13 of which
will be in pre-salt layer, Santos Basin, seven in the onerous assignment areas and 10 in post-
salt segments.
Technological Park in Rio de Janeiro “fully booked”
Siemens, BG Brasil and EMC Computer Systems Brasil were selected early June to set up
Rio Technological Park research centers located on the UFRJ university campus. The
companies will occupy the last remaining available complex slots - now hosting six
companies and five laboratories - investigating pre-salt development technologies.
BG Brasil will develop research projects in limestone, CO2 management, well safety and
integrity. EMC‟s studies will be in the field of Large Data Sets, with applications in genetics,
geology and entertainment. For its part, Siemens will be working on offshore and subsea
technologies, sustainable technologies, and renewable energy sources and software
development.
In addition to latest tender winners and Schlumberger (whose technological center has been
established) Baker Hughes, FMC Technologies, Usiminas, Tenaris Confab and Halliburton,
www.intsok.com | 32
will occupy park-based research centers.
French Research For Petrobras
At the end of this year, a group of French companies should announce setting-up of an R&D
Institute in Brazil to develop technology of interest to Petrobras. Included among projects are
solutions in acoustic communication, remote control operations, automation and robotics.
The group‟s aim is to give assistance to state company plans for decreasing numbers of
people on offshore platforms. Expectation is that the institute will have the participation of
Brazilian researchers and connections with Brazilian universities, such as the Catholic
University (PUC) and the Rio de Janeiro Federal University (UFRJ), among others.
Brazilian Technology In GoM
A new reduction-swaying technology in high seas monocolumns – recently developed by the
Polytechnic School of the University of São Paulo (Poli-USP) – is expected to be applied for
the first time for units located in the Gulf of Mexico‟s Cascade and Chinook fields, alos,
operated by Petrobras. Known as a “Fins Suppressing Motion-Induced Vortices System,” the
technology appears to be ideal for locations with strong currents, as is the case in the Gulf.
Technology reduces movement and effects of currents on useful life of the risers.
Objective is to use technology to substitute the strake – the frieze in the spiral welded pipes
along the monocolumn – traditionally used to reduce the impact of movement induced by
vortices impacting large floating structures. According to Poli-USP, the new system requires
20-times less steel than needed for the strakes, reducing both operator costs and platform
weight.
2010 an “excellent vintage”

Last year was a really good year for new oil discoveries, there were at least 14 major oil
discoveries in Brazil alone totaling 13.5 to 26.7 billion barrels. Here‟s a list below:
1. Well OGX-4-RJS: 100-200 million barrels – February
2. Well 1-OGX-3-RJS: 500-900 million barrels – February
3. Well 4-PM-53: 25 million barrels – February
4. Additions to Barracuda: 65 million barrels – February
5. Maastrichtian section of Well OGX-5: 30-90 million barrels February
6. Piranema: 15 million barrels – March
7. Wahoo: 300 million barrels – April
8. Franco: 4.5 billion barrels – May
9. Pipeline and Etna: – 1.4-2.6 billion barrels – May
10. Waimea and Fuji: 600 million-1.1 billion barrels – May
11. Carimbe: 105 million barrels – May
www.intsok.com | 33
12. Brava: 380 million barrels – June
13. Libra: 3.7-15 billion barrels – October
14. Cernambi field at Iracema: 1.8 billion barrels -December
In addition, there were more than 30 billion barrels discovered in other parts of the world in
2010, including Iran, Russia, Norway (more), Mexico, Ghana, Iraq, U.S. (more) and Oman,
bringing the total of new recoverable oil discoveries in 2010 to around 50 billion
barrels. Brazil was the clear leader in 2010, with oil found representing up to half of all new
global oil discoveries in 2010.
Hydrocarbon qualities in some areas in Brazil‟s offshore
www.intsok.com | 34
Final Comments:
Brazilian oil market tendencies
Brazil has a healthy position with respect to political risks among significant oil reserve
nations.
Chart 1 – AON risk map 2011
Given the robust investments in South America and North America, expectations are that
Brazil will put into production between 2010 and 2014, fields with total volumes
approximating proven reserves of 8.5 billion.
Chart 2: Total Reserves of fields that should be put into production by 2014, in billions of barrels of oil equivale
www.intsok.com | 35
The same enthusiasm is seen in technology investments in E&P activities at deep waters.
Neither the high costs associated with the upstream offshore segment were able to cool
down the investments. Even deep offshore remain high, so that supplies of rigs and platforms
in the year 2000 have struggled to follow the evolution of demand for such equipment.
We see that E & P initiatives in deep and ultra deep waters continue to grow in relevance and
quantity.
Brazil continues at the edge of these activities due to the PETROBRAS‟ pioneering spirit and
leadership at the upstream segment. The company faces a different problem from most of its
competitors. Although the great majority of oil companies have difficulties in carrying out
organic growth, it‟s the renewal of its reserves and increase production capacity, which
creates an opposite problem for Petrobras. It has many profitable investment opportunities to
increase the reserves and production. Even with robust cash flow, having strengthened its
capital and increases of significant financial funding, the company still cannot raise enough
capital to complete all projects it considers strategic. It is important to stress that the
company has one of the largest capital budgets in the world. In 2011, Petrobras intends to
invest $51 billion USD, 1.5 times more than $ 34 billion USD for Exxon, the world's largest
company. In fact, the pace of investments in deep offshore has remained more intense than
the other upstream segments . The main elements contributing to this are:
I) The existence of investment opportunities in this environment
II) The accumulation of knowledge and technological advances that mitigate costs
and risks
III) Competition from companies to reserves replacement and grow
IV) The oil prices stable at favorable levels, and
V) The availability of cash flow from the oil companies, from generated profits.
Thus, although the activities in deep water are more capital intensive, there remain players
able to take risks and attend the large capital requirements of this activity. The large oil
companies of PETROBRAS and Statoil, have the best conditions to work in this business
scenario, due to the investments in technology and training needed to acquire requested
skills.
Outside these figures, we have in Brazil other important players who can reinforce total
investments planned for Brazil Upstream segment (including on and offshore), such as:
HRT – announced investments about U$D 3,1 B, until 2014;
BG – 2010 gross capital expenditure commitment of U$D 13 B;
OGX – From 2011 to 2013 expected CAPEX of U$D 5 B.
www.intsok.com | 36
Sources:
http://www.energiahoje.com/
http://clippingmp.planejamento.gov.br/
http://economia.estadao.com.br/topicos/petroleo
http://hrblaw.com.br/
http://infopetro.wordpress.com/
http://netmarinha.uol.com.br/
http://news.seadiscovery.com/
http://news.yahoo.com/topics/oil-and-gas
http://www.agenciapetrobrasdenoticias.com.br/
http://www.anp.gov.br/
http://www.blogspetrobras.com.br/fatosedados/
http://www.braziloilandgas.com/
http://www.brazzilmag.com/
http://www.ce-epc.org.br/cms/
http://www.geofisicabrasil.com/
http://www.gestaonaval.org.br/
http://www.guiaoilegas.com.br/
http://www.labceo.uff.br/
http://www.latinpetroleum.com/
http://www.lexpetrolea.com.br/portal/
http://www.marinelink.com/
http://www.maritimeandenergy.com/
http://www.nicomexnoticias.com.br/
http://www.offshore-technology.com/
http://www.oilonline.com/
http://www.oilvoice.com/open/
http://www.petrobras.com.br/pt/investidores/
http://www.petroleum-economist.com/
http://www.portalnaval.com.br/
http://www.power.inf.br/site/
http://www.questoffshore.com/Home/
http://www.rigzone.com/news/
http://www.sinaval.org.br/
http://www.subseaiq.com/
http://www.subseaworld.com/
http://www.tnpetroleo.com.br/
http://www.upstreamonline.com/
Disclaimer Note:
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that
INTSOK delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee.
As such INTSOK can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
www.intsok.com | 37
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Brazil Country-Report August 2011

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Brazil Country-Report August 2011

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Brazil Country Report

Prepared by Vitor Azevedo Jr., Oil and Gas Advisor, Brazil

| 2W April 2011 – 2W August 2011|

OIL COMPANIES AND OPERATORS 13

New Pre-Salt FPSO Partners

Guará FPSO Under Construction

Drilling In Franco Begins

P-56 Receives Ibama Go Ahead

New Well In Jequitinhonha

Gas hydrates are crystalline

Plan to Demobilize Lagosta

Replicating Modules In The Market

New Petrobras-China Agreements

Closing In On Waimea EWT

10,000 Bpd from Horizontal well

Barra and QGEP In Atlanta-Oliva

Shell Seismic In São Francisco

[07.06.2011] 17h57m / By Felipe Maciel

Brazil‟s exploratory program summary for 2H2011, follows:

(*) Not completed until 2012

RollsRoyce Center For Rio

NOV Pens $1.5B Deal for 7 Drillship Equipment Packages

Sapura Up Front For The PLSVs

GE inks Petrobras Service contract

BMT Wants To Expand In Brazil

Replicating FPSOs Use Tognum

Cummins Plant To Startup In 2013

Foz is the highlight

First Local Content Fine

2010 an “excellent vintage”

1. Well OGX-4-RJS: 100-200 million barrels – February

2. Well 1-OGX-3-RJS: 500-900 million barrels – February

3. Well 4-PM-53: 25 million barrels – February

4. Additions to Barracuda: 65 million barrels – February

5. Maastrichtian section of Well OGX-5: 30-90 million barrels February

6. Piranema: 15 million barrels – March

7. Wahoo: 300 million barrels – April

8. Franco: 4.5 billion barrels – May

9. Pipeline and Etna: – 1.4-2.6 billion barrels – May

10. Waimea and Fuji: 600 million-1.1 billion barrels – May

11. Carimbe: 105 million barrels – May

13. Libra: 3.7-15 billion barrels – October

14. Cernambi field at Iracema: 1.8 billion barrels -December

Chart 1 – AON risk map 2011

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