70% Recovery factor: Petrobras Perspective - OilProduction.net

Rio Oil & Gas 2008
70% Recovery factor: Petrobras Perspective
Solange Guedes
Executive Manager
Petrobras S/A

Summary
1
Overview of Petrobras E&P Reserves and
Production Forecasting
2
Mature Fields Management Strategy: Continuing
IOR Improvement
3
Technological Challenges
4 Conclusions
September/2006

Overview of Petrobras E&P Reserves
and Production Forecasting

Overview of Domestic E&P - 2007
Reserves - SPE
Proven reserves of 13.92
billion boe
Internal Reserve Replacement
of 123.6%
Production
2,065 thousand boed (1,792
thousand bopd)
5-year CAGR of 5.6%
Exploratory Area
140.3 thousand km²

Domestic Proven Reserve Development

Onshore Production Replacement (MM boe)
1.600
1.300
1.344,2
1.411,0
1.363,7
1.402,3
1.333,5
1.346,3
1.387,7
1.400,3
1.409,8
1.321,2
1.325,7
1.325,9
1.305,6
1.000
Equivalent Oil - Million boe
700
400
100
-200
-500
-800
-1.100
-1.400
78,5
[78,5] 164,5
[86] 255,8
[91,4] 348,9
[93] 438,7
[89,8]
534,4
[95,7] 622,0
[87,6] 706,0
[84]
Proved Reserves Cumulative Production Annual Production
811,3
[105,3] 914,3
[103]
1021,2
[106,9] 1110,2
[89] 1196,5
[86,3]
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Offshore Production Replacement (MM boe)
Equivalent Oil - Million boe
13.200
11.200
9.200
7.200
5.200
3.200
1.200
-800
-2.800
-4.800
-6.800
6187,1
[214,7]
6676
214,7
[247,2]
7174,3
461,9
[265,4]
7377,2
8186,3
8301,3
8282,5
9608,2
Proved Reserves Cumulative Production Annual Production
12427,4 12614,1
11701,4
11906,6
11191,8
727,3
[318] 1045,2
[369,1] 1414,3
[417,2] 1831,6
[443,6] 2275,2
[501,4] 2776,6
[520,3] 3297,0
[499,5] 3796,5
[546,6] 4343,1
[613,7] 4956,9
[630,1]
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Domestic E&P Profile
2007 Production
2007 Proven Reserves (SPE)
23%
9% 10%
4,5%
16,0% 13,3%
58%
66,2%
2,065 thousand boed 13.92 billion boe
Onshore
Shallow water (0-300m)
Deep water (300-1500m) Ultra-deep water (> 1500m)
24%
Current Exploratory Area 38%
140.3 thousand km 2 27%
11%
65% of the concession areas are located in deep / ultra-deep waters.

Mature Fields Management Strategy:
Continuing IOR Improvement
Mature Fields - E&P Strategy
Integration
Cost
Integrity
Technology, Process, People

Domestic Fields
Green Fields
41%
Domestic Production
2.065 mil boed
Brown Fields
59%
Offshore
69%
Brown Fields Production
1.218 mil boed
Onshore
31%

Onshore Equivalent Oil in Place
Volumes In Place = 17.1 billion boe
Produced
19%
Remain in
Place
68%
Reserves
13%
Total RF = 32%

Offshore Equivalent Oil in Place
Volumes In Place = 97 billion boe
Produced
8%
Reserves
20%
Remain in
Place
72%
Total RF = 28%

RECAGE
Corporate program focused on
the improvement of production
levels of fields with high degree of
exploitation.
Main Objectives
Improve production levels
Improve the Recovery Factor
Costs optimization
Reduce decline rates
Lengthening the economic life

First Phase (2004-2008)
Main focus: onshore and shallow water mature fields
Increase water injection and velocity drainage
up to 10% VOIP and final WOR up to 35;
Improve reservoir management practices;
Optimize steam injection and water injection
projects;
Remove bottlenecks in production facilities;
Optimize lift systems;
Reduce drilling and workover costs – onshore
operations (rigless operations)

RECAGE: main results
4% Increase on Recovery Factor (average from 206 fields)
2004
31%
2007
35%
9000
Total Reserves (Brown Fields) MM boe
8000
7000
6000
5000
4000
3000
2000
1000
6075
6877
7125
13,2% 3,6% 2,9%
7333
0
2004 2005 2006 2007
Time (year)
Additional Recoverable Volume: 1258 MM boe

Onshore Sergipe mature fields - production
history and forecasting
History
Forecast
0,08
0,06
RECAGE Phase 1
Total
Oil rate (MMbbl/day)
0,04
0,02
Siririzinho
Carmópolis
Camorim
Dourado
0,00
1963 1973 1983 1993 2003 2013 2023 2033 2043 2053
Time (year)
∆RF = 4%

Canto do Amaro Field
Increase the water injection up to 7%
VOIP per year
Drill 200 new wells (injectors and
producers)
Selectivity only for injectors
Commingled completion
High volume of water produced
50000
45000
40000
BPD
Revitalization Project
35000
30000
25000
20000
15000
10000
5000
0
1986 1991 1996 2001 2006 2011 2016 2021
Production History
Project
∆RF = 5%

Miscible CO2 Injection - Miranga Field
Pilot Project (april, 2009)
250
3.000.000
200
2.400.000
Additional Production (m3/d)
150
100
50
0
2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044 2047
1.800.000
1.200.000
600.000
0
Cumulative Additional Production (m3)
Also, a CCS effort in Brazil
∆RF = 10%

Well Technology: Multifractured Horizontal Wells (HRMF)
Bonito Field: low-permeability carbonate reservoirs
Production Unit
Oil Pipeline
Gas Pipeline
∆RF = 15% - 20%

Campos Basin: The maturity phase has arrived
Discovery:
1974 – Garoupa Field
N
First Oil Production:
1977 – Enchova Field
Water Depth: 50 - 1500m
Floating Production Systems: 32
(23 SS, 9 FPSO)
Fixed Platforms: 15
Sea water Injection
Produced water Reinjection
Planned Sea water Injection
Total Stationary Production Units : 46
Producing Fields: 39

Marlim Field: different phases of production
Marlim Projects
400
Thousand BPD
350
300
250
200
83
100
RF = 50%
RF = 47%
81
RF = 46%
RF = 52%
51
67
RF = 55%
150
2008 2009 2010 2011 2012 2013 2014 2015
Production maintenance Increase Processing Marlim Phase 2 Marlim Phase 3 Marlim Phase 4
Increase 13 new water 100 wells 6 new processing thousand (11 wells producers – bbl/d December/07
in FPSOs in and 2010 2 P-35 injectors) and P-37
Marlim – Phase 4: preparing the basis to achieve RF around 70%
(900 MM bboe additional)

Marlim Field : technologies to achieve higher RFs
4D Seismic
VASPS
BCSS
BCS
CAISSON
2009 2010
2011
2012
SSAO
ANM
Piggy-back
TLWP
SBMS*
RWI*
Well technolgies

Campos Basin - Recovery Factor Evolution
Recovery Factor (%)
Time (years)

Technological Challenges to
achieve higher recovery factors
PROPES

Recovery toolbox
Water injection
HC gas injection
4D Seismics
Raw sea water injection
WAG
MEOR
Steam
CO2 injection
Polymer injection
Conventional wells
Horizontal wells
Multilateral wells
SMART wells
ERD wells
HRMF wells
Light Well Intervention
Real Time Operations Centers
Topside processing
Sub sea separation
Down hole separation
Sub sea pumping &
compression
Down hole pumping &
compression
Boosting systems
(VASPs, SBMS..)

4D Seismic
Interpretação S4D - Casos
Applications of 4D Seismic
Identificação de
Áreas Lavadas
Identificação de
Capa de Gás
Caracterização de
Falhas Selantes
13 wells - 9 relocated
Marlim Field
Anisotropia de
Permeabilidades
Identificação de
Falhas e Área de
Sobrepressão.
Ajuste de Histórico
de Poços
262 kgf/cm 2
305 kgf/cm 2
Capa de Gás Identificação de Falhas
Gas Caps
Faults and
Área Overpressure de Sobrepressão Areas
Falha Selante
Sealing Faults
Anisotropia Permeabilityde
Permeabilidade
Anisotropy
Ajuste Histórico
Production
com suporte S4D
History Matching

Scenario:
Albacora Field (2009)
Light oil
Unconsolidated sandstone
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
Subsea raw water injection (RWI)
Mid-water Inlet
Structure
Filters
Pump
Controls
Injection Well
bpd
out/87
out/90
out/93
out/96
out/99
out/02
out/05
out/08
out/11
out/14
out/17
out/20
out/23
out/26
out/29
out/32
out/35
out/38
out/41
out/44
out/47
out/50
out/53
RF
2003
40%
2007
47%
1 st Revitalization cycle
2 nd Revitalization cycle

Subsea system oil-water separation
Pilot Project in Marlim Field (jan. 2010)
Scenario:
• Marlim Field (2010)
• Heavy oil
• Very unconsolidated sandstone
PRODUCTION
GAS
SEPARATION
GAS
OIL – WATER
SEPARATION
OIL & GAS
OIL
WATER
OIL & GAS
FLOWLINE
INJECTION
WELL
SUBSEA OIL-WATER
SEPARATION
PRODUCTION
WELL
PRODUCED WATER
INJECTION FLOWLINE
PRODUCED
FLUIDS

Boosting Systems
SBMS
subsea multiphase pumping
BCSS
VASPS - Vertical Annular
Separation & Pumping System
Marlim Field - to be installed (2009)
Marimbá Field (P-8)

Offshore Polymer Injection
New scenario:
Heavy oil offshore field (~15 o API)
Excellent permoporosity quality
Recovery Process: viscosified water (by polymer injection)
Example:
PapaTerra field (DW: 1200 m - Campos Basin)
High porosity and permeability
15º API
oil viscosity: 50 to 150 cP
Horizontal wells with OHGP
TLWP and FPSO
Polymer Flood Equipment
Benefits - preliminary analysis :
Increase Recovery Factor : ∆RF = 7%
Decrease water production
Seminário “OG21-Workshop for Enhanced Oil Recovery”

Real Time Operation Centers
Picture

RECAGE – Phase 2
Expand the concept of Phase 1 to all fields,
including the Deepwater Fields Revitalization
Phase 2
Investment on key technologies (EOR process, light
well intervention, subsea processing and complex
well geometries)
Fenix Project: recovery factors benchmarking x
reservoir technical limits identification for all
Petrobras fields (onshore and offshore)

RECAGE – Phase 2 - Ambition
Offshore Fields
Recovery factor of:
70% on platform, low complex reservoir fields
60% on subsea, low complexity reservoir fields
Onshore Fields
Recovery factor of:
70% on light oil and/or low complex
reservoirs fields
35% on extra heavy oil and/or high complex
reservoirs fields

70% RF is becoming a reality
Field
Marlim
Bicudo
Lagoa Parda
Araças
Rio Urucu
Piraúna
Namorado
Miranga
Buracica
Location
offshore
offshore
onshore
onshore
onshore
offshore
offshore
onshore
onshore
Recovery Factor (%)
56
56
61
61
61
63
64
67
69

Final Remarks
During at least the next 20 years, oil and gas production from mature
fields will supply at least half of the World’s demand for energy.
Old paradigms for oil and gas production will be eclipsed by new
practices, new drivers and new technologies geared towards increased
recovery from mature fields.
The continued high oil price scenario, coupled with new tools,
technologies and processes will make 70% recovery targets for low
complexity reservoirs a reality .