Brazil Onshore 2011

Technologies for Mature Onshore Oil&Gas Fields Onshore Rigs and Well Services Market Speaker: Annibal Bonavides

Agenda
Onshore Activities in Brazil Internal Processes

Onshore Production
Onshore Rig Count Onshore Well Services Challenges Perspectives

Business Opportunities

Onshore Well Activities

Northeast North
rea de Negcio de Explorao e Produo Corporativo Construo de Poos Martimos Engenharia de Produo Explorao Norte-Nordeste

Part of Southeast

Projetos de Desenvolvimento da Produo Pr-Sal Servios Sul-Sudeste

Onshore Well Activities

Explorao e Produo NorteNordeste Construo de Poos Terrestres Unidade de Operaes da Bahia Unidade de Operaes da Amazonas Unidade de Operaes do Rio Grande do Norte e Cear

Unidade de Operaes Sergipe e Alagoas

Internal Processes
Opportunities Identification Well Design/ Workover Programming Evaluation and Planning for Execution

Drilling, Workover and Supervision

Workover and Maintenace

Rig
Services

Fluids Treatment and Processing

Supervision and Administration Well Services and Companies

Equip.

Fishing, Coring, Wireline Services

Onshore Well Construction

Logistics

Heavy Machinery Support Rig Moving General Support Services

IT&C Services

Onshore Production
Onshore production in Brazil: Oil and NGL production: 215 Mbpd Natural Gas production: 16.000 Mm/d

Onshore Rig Count

Drilling Rigs: 35 Owned: 11 Contracted: 24 Workover Rigs: 83 Owned: 9 Contracted: 74 Rig Count: 118

Onshore Well Services

Main Onshore Services: Cementing and Estimulation; Directional Services; Well Evaluation (Well Test and Formation Test); Logging; Fluids and Cuts Treatment; Bits (performance contracts).

Onshore Well Services

650 wells drilled per year; 7.000 workover activities per year; 20.000 general well services per year.

Challenges
Atract and/or develop companies with the appropriate technology, performance and costs, aligned to onshore needs, including:
Drilling and Workover rigs with low NPT and rig moving time; Low cost directional services, bits and tools; Low cost cementing, estimulation, fluids, logging services and tools; Integrated projects.

Challenges
Aplication of new solutions to achieve new scenarios: Tight Sands; Workover under pressure / Snubbing Units; ERW design and execution; Improve ROP and reduce NPT for hard formations.

Perspectives
Attract services providers capable to meet the local content requirements, including: Rigs and peripherals; Well equipments (surface and sub-surface); Well services.

Business Opportunities
Rig moving
Singles: 103 Doubles: 157 Triples: 42

Well services
Squeeze operations: 4.000 per year Frac Jobs: 550 per year Acidification: 300 per year Formation tests: 550 per year

Business Opportunities
Snubbing Services with Hydraulic Rigs

Rigless services
Pulling Services with Pulling Rigs/Flush By

Rig maintenance, refurbishment and inspection services

Real-time rig monitoring services (drilling and workover parameter + CCTV)

Low Cost is the Key

Petrobras holds a potential portfolio of large-scale projects, + 5.000 wells(*) to be drilled in three years, that can only be enabled through:

Low Cost Well

(*) Much more if we have low cost

Thank you
Annibal Viana Bonavides Gerente da Engenharia de Construo de Poo e-mail: bonavides@petrobras.com.br

Please, dont forget:

Low cost is the key
Annibal Viana Bonavides Gerente da Engenharia de Construo de Poo e-mail: bonavides@petrobras.com.br