OPPORTUNITY2

Brazil’s Oil & Gas Environment Will Be Dramatically Different

One of the largest divestment programs in the world that provides attractive risk / return conditions for investors


Petrobras, which currently holds more than 70% of Brazil's oil and gas total production, is focusing on deepwater pre-salt fields and divesting from its other E&P assets:


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Onshore and Shallow Water fields that could be divested by Petrobras total more than 250 assets, produce over 300,000 boe/d and hold more than 1 billion BBLs of reserves


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Changes to industry fundamentals, including reduction of Petrobras’ dominant position in Brazil’s oil & gas upstream, midstream and downstream, favoring private players and reducing systemic risks


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As ANP stimulates new areas to be explored and Petrobras’ dominance of the O&G market is reduced, exploration activity and discoveries should pick-up


Large E&P Potential Yet To Be Exploited

Brazil is still underexplored and offers vast E&P opportunities.
Only about 6% of the country’s sedimentary basins have been granted for E&P concessions:


The country has 38 sedimentary basins of which 29 are considered to have potential for oil and gas reservoirs (15 Offshore basins and 14 Onshore basins):
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More than 60% of Brazil’s sedimentary basins are located onshore, mostly unexplored, meaning more than 4 million km² of area
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ANP's estimates of 16.2 billion barrels of proved oil reserves at the end of 2014 amount to the second-largest level in South America after Venezuela
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Brazil’s current onshore production is equivalent to approximately 6% of that of neighboring countries despite Brazil's vast land area