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The events furthered energy reforms for the two Latin American oil and gas powers, both months away from presidential elections in which leftist candidates have vowed to dial back the changes. Preceding Brazil's 15th Round on 29 March was news that two blocks in the Santos Basin would not be offered after a court determined they would earn more value for the country as part of production-sharing contracts. Those blocks, which garnered strong interest, will be awarded in June. The offshore portion of the latest round was active nonetheless as 22 of 47 blocks were awarded, with much of the interest coming in the Campos Basin. Like the last Brazilian offshore auction in September 2017, ExxonMobil won the most blocks, tallying eight, while Petrobras and Wintershall each took seven blocks and Shell, Chevron, Statoil, and Qatar Petroleum (QP) each took four blocks.
- Asia > Middle East > Qatar (0.55)
- North America > Mexico > Veracruz (0.54)
- North America > Mexico > Gulf of Mexico (0.51)
- South America > Brazil > Brazil > South Atlantic Ocean (0.25)
- Energy > Oil & Gas > Upstream (1.00)
- Government > Regional Government > North America Government > Mexico Government (0.76)
- South America > Brazil > Rio de Janeiro > South Atlantic Ocean > Campos Basin > Block P-36 > Roncador Field > Maastrichtian Formation (0.99)
- South America > Brazil > Rio de Janeiro > South Atlantic Ocean > Campos Basin > Block BM-C-7 > Peregrino Heavy Field (0.99)
- South America > Brazil > Rio de Janeiro > South Atlantic Ocean > Campos Basin > Block BM-C-47 > Peregrino Heavy Field (0.99)
- (22 more...)
Stephen Thurston About 81% of the wells have been unsuccessful. On the mappable discoveries, it is hard to really say: right now we have one - we feel fairly comfortable in saying that the recently announced BC- 60 discovery by a Petrobras announcing 600 million barrels, sounds like they have hit the commercial threshold. We are keeping an eye on five other blocks - BC-2, BC-10, BS-4, BC-600 and BS-500. No firm development plans or commercial discoveries have yet been announced, but we see a lot of activities, so we are hopeful for those will yield commercial results. But the conclusion is about the same. It looks like the commercial success rate in the last couple of years may hover around one and ten or potentially higher risk than that. And certainly it is not in the lower range or 1 and 3 or 1 and 5. So if we look at the resource opportunity today, 2002, we can only conclude that the discoveries to date are smaller than about half a billion barrels which is the average we saw, and it looks like in many cases, we are clustering smaller discoveries to come up with the commercial inertia. Oil gravities have in many cases less than 18 API. The hopeful sign is that most of the E&P around 1, 2, 3 blocks have yet to be drilled and we see significant drilling campaigns being prepared for 2003 and 2004. So, our overall conclusions, we would have to say, the risk has gone up; the prospects appear to be smaller, but we still have significant opportunities in the next couple of years on the blocks that have already been leased. So, now let us turn to the next element to sustain the empty industry, and that is competitive terms and conditions. We recognize the initial terms and conditions that were put forth were competitive, they were based on a view of significant fields sizes found in deep water; we recognize there are some elements of those competitive terms, on commercial terms, which are less competitive. We recognize the complex tax regime, indirect taxes that are focused more on the yielding or upfront activity rather than on the revenue string; we see special participation taxes that were designed based on the view of the reserve that would be found at the time and some foreign exchange issues. If we look at the fiscal regimes, all we can really say is that they are somewhat complex and somewhat numerous, and I am not going to go into them here. Just to say that on an undercounted basis, if you look at the Brazil fiscal regime, it is competitive when you look at on an undercounted basis with the OCS of the US, Angola, Nigeria. However, because a lot of the Brazilian fiscal regime is focused on taxes on transactions up front, and you recognize you are in long-term development projects over time, that the discounted government take is a differen
- South America > Brazil > Rio de Janeiro > South Atlantic Ocean (1.00)
- South America > Brazil > Bahia (0.68)
- Energy > Oil & Gas > Upstream (1.00)
- Banking & Finance (1.00)
- Government > Regional Government > South America Government > Brazil Government (0.50)
- South America > Ecuador > Orellana > Amazon Basin (0.99)
- South America > Brazil > Rio de Janeiro > South Atlantic Ocean > Campos Basin > Bijupira-Salema Field (0.99)
- South America > Brazil > Bahia > South Atlantic Ocean > Camamu-Almada Basin (0.99)
- (11 more...)
E&P Notes Total, Google Cloud To Team on AI for Upstream Matt Zborowski, Technology Writer Total and Google Cloud are teaming up to combine artificial intelligence (AI) with subsurface data analysis in an effort “to explore and assess oil and gas fields faster and more effectively,” the French supermajor said in a press statement. Google Cloud has previously stated its intention to further its involvement with the oil and gas industry. Under an agreement, the companies intend to develop AI programs to interpret subsurface images from seismic studies using computer vision technology and automate the analysis of technical documents with natural language processing technology. Total geoscientists will work with Google Cloud’s machine learning personnel as part of the same project team based in Google Cloud’s “advanced solutions lab” in California. Pioneer Unveils Strategy To Boost Permian Production, Control Costs Matt Zborowski, Technology Writer A more crowded Permian Basin means higher drilling, completions, and operating expenses for exploration and production firms, many of which have already spent billions of dollars over the past couple of years to gain core acreage positions in the region. Confident in its ability to take on these cost increases is long-time Permian operator Pioneer Natural Resources, which traces its roots in the basin back to the early 1960s with predecessor company Parker & Parsley. The company is in the midst of a plan to increase its production to 1 million BOE/D by 2026 while divesting its non-Permian assets. Shale Output Redefining US Production Stephen Rassenfoss, JPT Emerging Technology Senior Editor Recent snapshots of last year’s US energy production show how the shale oil and gas business has gone from a revolution to an evolving production machine. The centers of oil and gas production remain constant in the recently released production figures from the US Energy Information Administration (EIA), which show that the big-gest concentration of gas production is from a cluster of states—Pennsylvania, Ohio, and West Virginia. They just edged out Texas, which declined a bit last year. A look at the production changes by state shows Louisiana and Ohio as the fastest-growing states, benefitting from the growing domestic and global markets for US gas. Abu Dhabi Plans International Tender for Oil and Gas Exploration Blocks Abu Dhabi National Oil Company (ADNOC) is planning its first-ever competitive tender for international partners to participate in the exploration and development of oil and natural gas, in an effort to boost production in the UAE. Placed for bid will be four onshore and two offshore blocks, with bidding expected to conclude by October and ADNOC to announce the winners by year’s end, company CEO Sultan Ahmed Al Jaber said at a recent news conference. The partners would bear the exploration costs, and with the startup of production, ADNOC would assume a 60% interest. Total Becomes Founding Partner of Smart Energy Fund in China Total’s venture capital arm invested around $50 million to launch the Cathay Smart Energy Fund, alongside the provincial government of Chinese province Hubei (through Hubei High Tech Fund) and Cathay Capital. Finalized on 27 March, this ranks as one of Total Energy Ventures’ (TEV) biggest investments to date in a fund. Dedicated to China’s energy sector, it will focus on renewable energies, the energy Internet, energy storage, distributed energy, smart energy, and low-carbon businesses. “Everything changes at lightning speed. If you’re not paranoid, if you don’t check your rearview mirror constantly, you’re at risk of being overtaken,” said Girish Nadkarni, TEV’s CEO in a statement. International Majors Expand Footprints in Brazil, Mexico Matt Zborowski, Technology Writer A wide array of international oil companies shored up their presences in Brazil and Mexico in March following a pair of auctions. The events furthered energy reforms for the two Latin American oil and gas powers, both months away from presidential elections in which leftist candidates have vowed to dial back the changes. Preceding Brazil’s 15th Round on 29 March was news that two blocks in the Santos Basin would not be offered after a court determined they would earn more value for the country as part of production-sharing contracts. Those blocks, which garnered strong interest, will be awarded in June.
- North America > United States (1.00)
- Asia > Middle East > UAE > Abu Dhabi Emirate > Abu Dhabi (0.45)
- South America > Brazil > Brazil > South Atlantic Ocean (0.24)
- Press Release (0.48)
- Financial News (0.34)
- Government > Regional Government > North America Government > United States Government (1.00)
- Energy > Oil & Gas > Upstream (1.00)
- Government > Regional Government > Asia Government > Middle East Government > UAE Government (0.95)
- South America > Brazil > Campos Basin (0.99)
- South America > Brazil > Brazil > South Atlantic Ocean > Santos Basin (0.99)
- North America > United States > Texas > Permian Basin > Yeso Formation (0.99)
- (36 more...)
This paper intends to study presalt region economic viability by choosing the case of Libra field, the only presalt field to be acquired in Production Sharing Contracts bid round until now. Libra is considered one of the most important exploratory areas worldwide and its Brazil´s biggest oil field. For the conclusions of this paper it was necessary to estimate production volumes and costs involved in the development of Libra oil field according to industry parameters and government data. A forecast for oil prices was stipulated according to historical data and future contracts. A cashflow could be determinate by concatenating expected income with production sharing agreement government outcomes, making it possible to define the Payback, Internal Return Rate (IRR), and Net Present Value (NPV) of the investment. Varying the discount rate it was possible to study the NPV sensibility. The Brazilian new exploratory frontier region denominated Presalt is gaining remarkable importance in country´s economic and political scenario. The outlook for the next 10 years is that presalt fields will represent over 50% of Brazilian´s production, calling attention of researchers and experts. To aim high economic benefits, in such alluring area, local Government presented a series of adjustments in its regulations for E&P industry. However, drilling and producing in Presalt presents technology challenges, due to significant distances from shore, extreme water depths, thick and unstable salt layers, and still limited knowledge over reservoir rock. Research and appraisal will consume high investments, since technologies to be used in the region involve high costs. Added to this there are uncertainties concerning the current regulatory changes, which constrain production profits, and rise concerns over projects viability in the region.
- South America > Brazil > Rio de Janeiro > South Atlantic Ocean (1.00)
- Oceania > Australia > Western Australia > North West Shelf (1.00)
- Africa > Middle East > Egypt > Nile Delta (1.00)
- Energy > Oil & Gas > Upstream (1.00)
- Government > Regional Government > South America Government > Brazil Government (0.50)
- Government > Regional Government > Asia Government > China Government (0.47)
- South America > Brazil > Rio de Janeiro > South Atlantic Ocean > Santos Basin > Libra Block > Libra Field > Guaratiba Formation (0.99)
- South America > Brazil > Rio de Janeiro > South Atlantic Ocean > Santos Basin > Block BM-S-11 > Libra Field > Guaratiba Formation (0.99)
- South America > Brazil > Campos Basin (0.99)
- (4 more...)
Abstract Local Content Policies are worldwide applied to oil and gas (O&G) exploration and production (E&P) contracts, in order to stimulate the national goods and services industry. This policy implements Local Content (LC) commitments in contracts for O&G exploration blocks. In this way, minimum LC percentages are established and supervised in Brazil by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). Additionally, this minimum percentage is taken as a judgment criterion for the concession regime bidding rounds, as well as pre-established in Production Sharing and Onerous Cession contracts. In the past years, high levels of LC, coupled with oil price drop, have taken oil companies to request adjustment and/or exemption of this contractual commitment. Although provided for in E&P contracts, the mechanism regarding the exemption and adjustment of Local Content clauses had not yet been regulated by ANP until 2017. Then, in 2018 ANP approved Resolution No. 726/2018, defining clear and objective criteria for the request and its conditions. Therefore, this paper intent to present and analyze the history of local content policy in the Brazilian O&G industry, the regulatory framework, also evaluating the quantity of requests for changing CL commitments and ANP responses.
- South America > Brazil > Rio de Janeiro > South Atlantic Ocean > Santos Basin > Libra Block > Libra Field > Guaratiba Formation (0.99)
- South America > Brazil > Rio de Janeiro > South Atlantic Ocean > Santos Basin > Block BM-S-11 > Libra Field > Guaratiba Formation (0.99)
- South America > Brazil > Brazil > South Atlantic Ocean > Santos Basin (0.99)
- (5 more...)