Petróleo Brasileiro S A Petrobras : Tupi's 20th anniversary

TUPI's 20th ANNIVERSARY:

A Breakthrough Journey

September 28, 2020

Partnership: a relationship of trust

-

PARTNERSHIP

Based on:

Union	▪	Common interests
among
▪	Win-win relations
Companies	▪	Collaboration
	▪	Trust

Ruled by documents, but above all by

TRANSPARENCY AND BUSINESS ETHICS

Partnership compliance

-

JOA

(Joint Operating Agreement)

Ethics Conducts and

Compliance

Clause

BM-S-11

Compliance Subcommittee

• Installed in Aug/2014

▪ Proactive actions for compliance issues, in line with national standards

Tupi: from market opening to discovery

-

1997

2000

2000-04

2006

Petroleum

BM-S-11

Block

LawAcquisitions

The Petroleum Law (Law	We acquired the blocks
9,478/1997) was an	under a concession regime
important milestone for the	in the Santos Basin in ultra-
oil and natural gas sector	deep waters (BM-S-11,BM-
and established the end of	S-8,BM-S-9,BM-S-10). The
Petrobras' monopoly in the	BM-S-11 concession
research, exploration,	contract was signed in
production and refining of	September.
oil/natural gas activities.

SeismicTupi Discovery acquisition and

interpretation

At the Santos Basin, we	After a complex drilling
performed the largest 3D	campaign, we carried out
seismic survey in the world	our firstcommercial
at the time (more than	discovery at Tupi
20,000 km2). We searched	(1-RJS-628A).

for locations around the

world with similar microbial

carbonate rocks.

Never in the global oil and gas industry has a company faced these challenges

-

Distance from the coast

Ultra deep waters

Lack of infrastructure

Thick layer of salt

Few similar reservoirs in the

world

Not everyone believed in our potential since discovering a giant oil field is not enough, it also needs to be profitable

-

Sept 07, 2010

We performed the first pre-salt extended well test

Tupi's Extended Well Test (TLD) began in 2009 in the Cidade de Sao Vicente FPSO

-

FPSO Cidade de São Vicente

Just 4 years after the discovery, we implemented the first production system

The Pilot project has been in operation since 2010 at Campo de Tupi (FPSO Cidade de Angra dos Reis)

-

FPSO Cidade de Angra dos Reis

We all have a direct or indirect relationship with Tupi

Integration was a critical success factor for the development of the field

-

	Project	Exploration	Elevation and
	Flow
Audit	Surface	Reservoir	SMS
Systems
	TUPI
	HR		Refinery
Marketing and	Wells	Subsea Systems	Accounting and
Logistics	Tax
	TIC	Operation	Gas and Energy
	Supply of
Legal	Goods and	R&D	Finance
	Services

Partnership

We went further and further

And faced many challenges

-

TUPI

PRE-SALT (Reservoirs up to 7,000 meters)

Well design and construction challenges

We securely access the deepest and most challenging reservoirs

-

• Drilling of reservoirs more than 5,200 meters deep with water depth above 2,000 meters

»

»

New technical requirements for drilling rigs

Incentives alignment with outsourced service providers

• Reservoirs and drilling complexities in the pre-salt player

• New technological solutions
• Development in partnership with suppliers

• High cost of offshore well operations

• Integration of well service contracts and variable market share
• Improvement of the supply chain

• Explore new frontiers with operational and process security

• Team specializations and increased onshore and offshore monitoring

Subsea Engineering Challenges

We safely develop extremely complex subsea collection systems

-

□ Withstand high pipeline loads and severe environmental conditions in	Floater - BSR
the Santos Basin

• Development of decoupled floaters
• Flexible duct systems with floats

• Need to reach depths of up to 2500 meters, with high pressure and contaminants

• New developments and standardized pipelines and subsea equipment

• High demands for the construction of subsea Systems

• Technological partnerships and development of the subsea industry in Brazil

• Reinjection of Produced Gas

• Development of the WAG solution and specific equipment for gas injection

Platform design and construction challenges

We deliver highly complex and large FPSOs at unprecedented deep water levels

-

• Accelerated platform supply in a highly growing market

• 6 chartered FPSOs and 3 owned FPSOs in 8 years, first unit in just 4 years
• Standardized owned and chartered units, aiming at optimizing deadlines and costs
• Ongoing adaptation of FPSO contracting strategies

• Processing and treatment of large oil, liquid and gas flows

• Challenges for commissioning of high and multiphase flow oil systems
• Pioneering offshore gas treatment in Brazil by using membranes to remove CO2 and molecular sieve

□ CO2 Separation and Reinjection

» Gas compression system flexibility for export or reinjection

» Flexible plant to meet the pioneer use of alternate water and gas (WAG) reinjection in Brazil

Among the ten awarded technologies, nine are applied in the Tupi Field

This was a major milestone in the pre-salt development given the unprecedented nature of these technologies in the offshore industry

-

Deepest riser in the Lazy Wave (SLWR)

First Buoy Supporting

Riser (BSR)

configuration

First use of flexible

risers integrated with

a traction wire

monitoring system

First steel overhead riser with lined pipes, installed according to the reel lay method

Distinguished

Achievement

Award

OTC 2015

Record deep water depth (2,103 meters) for drilling a well using the Pressurized Mud Cap Drilling (PMCD) technique

First separation of CO2 associated with natural gas in ultra-deep waters with CO2 injection in production reservoirs

First intensive use of

the intelligent

completion design in satellite wells located in ultra-deep waters

Deepest subsea well with CO2 gas injection (in deep waters of 2,220 meters)

First use of alternate

water and gas

injection method in deep waters (2,200 meters).

World's largest ultra-deep oil province is born

-

1996-99		Lease A
	Fundo do Mar

Santos Basin:

Exploratory strategy:

crossing the limits of the

Campos Basin

Santos: "Cold" basin with unknown potential

Exploratory model

outside the traditional

Topo do Sal

Base do Sal

Embasamento

Location A: First Pre-Salt lead on 2D seismic lines (1997)

To open new exploratory frontiers, we acquired 4 concessions in ultra deep waters in the 2nd ANP Bidding Round

-

2000

New Business

Model: E&P

Partnerships

Petrobras (Operator)

• BM-S-8
• BM-S-9
• BM-S-10
• BM-S-11

Blocks held the

area of all Ring Fences in the Campos Basin

BM-S-10

RO

ABL

MLL BM-S-11

MLS

BM-S-8BM-S-9

Blocks of Saints

Ring Fences of Campos

Integration between partner companies for the acquisition and processing of the largest volume of 3D seismic data in the world

-

2D PSTM seismic data

Data acquired and processed by PETROBRAS

3D seismic data PSDM

2001-02

From 2D to 3D

13 months of data

acquisition

Single acquisition for 4

different consortia

Geological definition of

the Tupi field

Data acquired and processed by Veritas > CGG

"Below salt, light oil": Tupi's discovery breaks paradigms and opens a new exploratory

frontier ...

-

NWTUPI

2000

3000

4000

Seal

SE

2002-06

Tupi

Discovery

5000

6000

Reservoir

The discovery occurred

through the well

1-RJS-628A

metros

Generating Rock

7000

2.200m

8000

Data acquired and processed by Veritas > CGG

Drilling the well required innovation and courage

We implement, on average, one production system per year at Tupi

Nine production systems were implemented from 2010 to 2019

-

Cid. Angra dos Reis	Cid. Paraty	Cid. Mangaratiba	Cid. Itaguaí	Cid. Maricá	Cid. Saquarema	P-66	P-69	P-67
OCT/10	JUN/13	OCT/14	JUL/15	FEB/16	JUL/16	MAY/17	OCT/18	FEB/19
1st oil	1st oil	1st oil	1st oil	1st oil	1st oil	1st oil	1st oil	1st oil
Cid.	Cid.	Cid.	Cid.	Cid.	Cid.
P-66	P-69	P-67
Angra dos Reis	Paraty	Maragantiba	Itaguaí	Maricá	Saquarema

12	12	16	16	14	15	13	10	9
interconnected	interconnected	interconnected	interconnected	interconnected	interconnected	interconnected	interconnected	interconnected
wells	wells	wells	wells	wells	wells	wells	wells	wells
+240 km	+190 km	+290 km	+290 km	+230 km	+290 km	+250 km	+190 km	+235 km
of subsea	of subsea	of subsea	of subsea	of subsea	of subsea	of subsea	of subsea	of subsea
pipelines	pipelines	pipelines	pipelines	pipelines	pipelines	pipelines	pipelines	pipelines

Our learning on Platforms

-

12.8 months, on average

RJ

Elevated

platforms	CAR CPY CMB CIG CMC CSQ P-66P-69P-67

Bacia de Campos

84 days, on average

Flare out
(days)	CAR CPY CMB CIG CMC CSQ P-66P-69P-67

Bacia de Santos

Learning in the Ramp up of the units

Reduced flare out time, less gas flaring and CO2 emissions

Our learning from well constructions

-

Tupi's well

construction period (days)

Primeiros

Poços

3x

2020	faster

Reduction of well costs and optimization of well projects

Learning in the execution of wells and strengthening decision support centers

Use of more efficient probes

* Construction: drilling + completion

Our learning from Subsea Engineering

-

Standardization of equipment and flexible ducts

Reduction of the anchoring radius and use of directional wells

Better equipment and lower number of flotation modules

• Tupi's average interconnection cost
  (MM USD/well)

Primeiros

Sistemas

2020

30%less

The platform is the visible portion of a highly complex system

Kilometers of pipelines and more than one hundred wells are below sea level

-

9 units in operation

1 unit installed/year

(2010-2019)

117 interconnected wells

Producing wells and injectors

+2,200 km of subsea pipelines

Risers, flowlines and umbilicals

The largest deep water global production

-

Cid. Itaguaí

Cid. Mangaratiba

P-67

2 Bn boe	+R$ 100 Bn
Accumulated production	Royalties and PE (special
	equity)
	2010-2020

Cid. Maricá

Cid. Saquarema

1,116 mbpd

Record production November 30, 2019

1,000 mbpd

July 25,

2019

P-66

P-69

Cid. Paraty

% 34%

Brazil production (boed)

July 2020

500 mbpd

May 8, 2016

Cid. Angra dos Reis

abr/09

ago/20

In just over 11 years we produced 2 billion boe (barrel of oil equivalent)

-

Accumulated Production

		2.000
											TUPI				MARLIM
TUPI		1.500
11 years	BOE
	MILLION	1.000
Marlim
	500
18 years
		0
		0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20
												YEAR

Considering the start of production with Tupi's Long Duration Test

Post-salt supported Tupi's development, which supports Búzios

-

Búzios

Pre-salt

											TUPI will continue to be
									the largest deep water
												production field											Post-salt
																				(Deep and Ultra
																			in
																																			Deep Waters)
														the following years
																				Onshore and
																						Shallow
																						Waters
1953	1954	1955	1956	1957	1958	1959	1960	1961	1962	1963	1964	1965	1966	1967	1968	1969	1970	1971	1972	1973	1974	1975	1976	1977	1978	1979	1980	1981	1982	1983	1984	1985	1986	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	6M20

Oil Petrobras

Production

1H

2020

Our future in the Tupi Field

-

	Additional
	Information
	Sísmica
	OBN +
	4D
WAG	Tupi
Full Field
	Extension
	The
	Digital Twins
	Revitalization

Maximize asset value

• Increased recovery of oil and gas (we have only produced 5% of the field's volume so far - we will go much further)
• Revitalizing a field even before its decline begins
• Reduction in Extraction Costs
• Accelerate the incorporation of new technologies

P-66 is our first platform represented on Digital Twins

-

	Digital representation of the asset
	» Platform integrity
DIGITAL	» Data integrated with the 3D model
» Visualization in sectors, corrosion level and
TWINS	measurements, consultation of technical
Integrity	documents

Computer Vision	Industrial View
» Digital inspection of external corrosion	» Virtual shipping
» Deep learning models	» Topside 360 documentation
» Reduction in inspection subjectivity	» Integration of the 360 data with the 3D model

We are already part of this story

-

RJ

Geological Modeling to understand the Reservoir

Better characterization and prediction of behavior in carbonate reservoirs

CI Configurations for Open Wells

Reduction in CAPEX, flexibility with scope maintenance

Campos Basin

Monitoring the integrity of Flexibles

Increased integrity in Flow Systems subject to SCC-CO2

Gas processing systems

Membrane technology for the removal of CO2

Santos Basin

Riser support systems and Anchoring optimization

Feasibility for pre-launching flexibles and footprint reduction

Linking R&D and Innovation to Production Development

-

Technology included in Tupi's revision process of its Development Plan

At what time should we include it?

Revision of Tupi's Development Plan

Phase 1 Identifying Opportunities	Phase 2 Selecting alternatives	Phase 3 Basic Project	Execution
Tupi Revitalization 1	Tupi Revitalization 1	Tupi Revitalization 1

Indicators

High Potential Concepts

Economic Assessment

R&D Master Plan	Specification	Acquisition	Delivery

R&D

Prototype Pilot Approved

Applied

What we want to achieve

-

Potential Technologies for

Tupi Revitalization

By Subject

By Deployment Term

	70	66	Average	Long
Technologies	60		29%	61%
			10%
	50
Application	40
30
Potential
20
	10		Short
	0

Reservoir Aspects

Technologies for more predictive and faster updated models and special methods that increase the Recovery Factor

Technologies to reduce CAPEX, OPEX and ABEX

Wells and subsea systems that are highly reliable and have low costs

Technologies for Subsea Processing

Productivity gain with the de-bottling of UEP (Unite of Production Effort)

Technologies to reduce HHER

Technologies to enable ongoing reduction in work accident rates and eliminate fatalities

Technologies to reduce Emissions

Technologies to reduce the Greenhouse Gas Emissions Index

TUPI's 20th ANNIVERSARY:

A Breakthrough Journey