IN DEPTH EDITION www..com/magazine

Cutting edge technology Innovations employed to enable pre-salt production ensure to Petrobras, for the third time, the OTC Distinguished Achievement Award PETROBRAS MAGAZINE Editorial Contents Global Connections 03

www.petrobras.com/magazine New Dimensions IN DEPTH EDITION The triumph 04 of experience Photo: Petrobras Agency Petrobras Photo:

All Over Inside Story Recognized The importance Message from the president 10 competence 34 of knowledge

his year, for the third time, Basin when we surpassed, for the first innovative technologies. In the subsea Petrobras is celebrating time ever, a water depth milestone: oil engineering area, we installed and the achievement of the production beyond 1,000 meters. operated the first Buoy Supporting highest international award Risers, a subsea structure weighting any company Moving forward, the company developed 2,700 tons. We have made great gains Tcan earn: the OTC Distinguished pioneer technologies with our local in achieving new water depth records Achievement Award. Granted by the and international partners. We broke for risers, and have managed to re- Energy Geek Frontiers Offshore Technology Conference – the the water depth record for offshore inject all the CO2 produced offshore Pre-salt Promising most important entity for the offshore production systems and respective into the pre-salt reservoirs of the Technology partnership industry – the distinction recognizes the subsea equipment, at the same time . By separating all of the 12 38 contributions the company has made as we raised our oil and gas reserves. CO2 from natural gas at our production toward developing new technologies for In 2001, we were again honored with platforms in the region, we have this industry, as a result of its efforts the OTC Distinguished Achievement prevented atmospheric emissions of 1 to explore and produce the pre-salt Award, this time for the Roncador million tons of CO2, which has brought petroleum deposits. Today, the pre-salt field development, which provided great benefits for the environment as has become a consolidated reality. We the oil and gas industry with new well as our recovery factors. These are produce from that region approximately threshold and references for offshore technologies first applied by Petrobras, Over the Seas 700,000 barrels per day of petroleum, technology. The prize we are receiving and today they are ready for use. We Excellent results, Dialogues representing more than 30% of our entire now in 2015 shows this history was hope these become yet another legacy even better Working Brazilian production. This milestone based on hard work and excellence, established by Petrobras for the benefit was achieved in record time: only eight which has always characterized of the global oil and gas industry. 26 expectations 44 together years since the discovery of this new the Petrobras technical team. frontier for exploration was announced. While these are significant The development of the pre-salt is the achievements, it is important to point The award results from a long history, natural continuity of knowledge and out that our success is the result of STAFF and shows the consistent technical technologies gained since the 80s. The the determination by Petrobras, since EXECUTIVE MANAGER FOR CORPORATE COMMUNICATION: Luis Fernando Maia Nery | INSTITUTIONAL RELATIONS AND OWNED achievements Petrobras has made in pre-salt meant new challenges – from MEDIA MANAGER: Gilberto Puig Maldonado | INTERNATIONAL RELATIONS MANAGER: Patricia de Mello Dias | EDITOR AND our very beginning, to overcome its COORDINATOR: | EDITORS: deepwater exploration and production. the discovery and geologic modelling Estephani Beiler Zavarise Carlos Aurélio Werneck de Miranda e Silva, Talita Toledo Leite, Telmo challenges. Our efforts are based on the Wambier | IMAGE EDITOR: Suzana Fuhrken Peixoto | TEXTS: Larissa Asfora, Roberto Francellino, Taísa Fortes | TRANSLATION The first time we received the OTC of these reservoirs to the extraction of firm foundation of our technical staff, AND REVISION: John Waggoner | IMAGES: Matheus Alvarenga Cardeal, Marcelo Freitas award, in 1992, we were recognized petroleum from sites located at great whose competence is unquestionable for a set of technologies applied distances from shore, at extreme water Credits – as demonstrated by yet another GRAPHIC DESIGN: MQuatro Design at the Marlim field in the Campos and reservoir depths, and beneath conquest in our history of success. Petrobras Magazine Global Connections is not sold. To request a subscription or information, or to Basin. At the time, the global industry a thick layer of salt which required send in a letter or suggestions, contact our editorial team at the address below: recognized the efforts by Petrobras innovative technologies for drilling. Petrobras / Relacionamento Internacional and our partners (equipment suppliers Aldemir Bendine Avenida República do Chile 65, sala 1902 - - RJ - CEP: 20031-912 Brasil Email: [email protected] | Website: www.petrobras.com/magazine and service contractors) to enable In the first pre-salt fields, we successfully President The partial or total reproduction of this publication’s articles is authorized provided that the source is credited. offshore production in the Campos developed and tested an array of Petrobras Copyright 2015 by Petrobras. Affiliated to the Brazilian Association of Corporate Communication. PETROBRAS MAGAZINE New Dimensions Global Connections 05

The triumph “THE AWARD RECOGNIZES HOW MUCH PETROBRAS HAS of experience CONTRIBUTED OVER TIME TO DEVELOPING Petrobras Magazine Global Connections INNOVATIVE interviews Solange da Silva Guedes, Director of Exploration and Production at Petrobras TECHNOLOGIES FOR THE OFFSHORE

he award given Petrobras the company, in partnership with other chance that its technological excellence PETROLEUM this year by the Offshore operators, suppliers, and the scientific is being recognized. Few companies, Technology Conference (OTC), community. More so, it meant the anywhere in the world, have managed INDUSTRY” recognizes at an international unprecedented mobilization of its most to achieve this. The award recognizes level the ample contribution valuable asset: its wealth of knowledge. how much Petrobras has contributed — Tthe company has made to the petroleum over time to developing innovative industry as a whole through its set of Solange da Silva Guedes, Director of technologies for the offshore petroleum new technologies. This award not only Exploration and Production at Petrobras, industry. Above all, it confirms how takes into consideration the magnitude says in this interview that developing well qualified our technical team is, of the results obtained, but first and this new frontier was possible only which has continuously surpassed foremost the enormous value these because of the knowhow accumulated the limits of the industry, as well as technologies will bring to future projects. over more than three decades of the valuable contributions of our These technologies, applied in the exploration and production in Brazilian partners and the competence of our pre-salt production development, are deepwater, and the qualifications equipment and service providers. innovations which have made decisive of the company’s technical team. contributions to the efforts by Petrobras and its partners to surpass the milestone PMGC: How has Petrobras prepared of 700 ,000 barrels per day (bpd) of oil PMGC: What do you make of for pre-salt development, from this geologic frontier only eight Petrobras’ conquest of the OTC in such a challenging ultra- years after the first discovery. This result prize for the third time? deepwater environment? shows beyond doubt the capacity of the company in exploration and production. Solange: The OTC Distinguished Solange: When it began its pre-salt Achievement Award for Companies, activities, Petrobras already had Making it technically and economically Organizations, and Institutions is the accumulated a considerable amount viable to produce petroleum in a new highest award a petroleum company can of knowledge about exploration and exploratory zone, with conditions which win. The fact that Petrobras was even production in deep and ultra-deepwater. were largely unknown, was a step which considered for this distinction three Our experience in the acquisition, Cris Isidoro Photo: took enterprise and daring on the part of times demonstrates it is not by mere processing and interpretation of PETROBRAS MAGAZINE New Dimensions Global Connections 07

“THE SUBSEA SYSTEMS FOR THE PRE-SALT WERE SUBJECTED TO DIFFERENT PRESSURES, WHICH REQUIRED NEW AND MORE RESISTANT MATERIAL SPECIFICATIONS” —

seismic data, geologic and reservoir salt that in some cases is up to 2,000 flow models, risk management, drilling meters thick. The metocean conditions and completions, subsea production are more severe than in . systems, ultra-deepwater mooring, The reservoirs consist of microbial and processing plants, among others, carbonates, which formerly had been in Campos Basin prepared us for the poorly understood, with characteristics greater challenge of developing the of permeability and porosity, as well pre-salt. Even so, setting off into as hydrodynamic behavior, which is a new frontier with the complexity different than the turbidite sandstone of the Santos Basin pre-salt was an we are most familiar with. Additionally, undertaking that demanded new the fluids produced from many wells competencies in terms of modeling show various concentrations of CO2 and and analysis of uncertainties about H2S, and greater pressures than those the reservoirs, flow assurance, and found in Campos Basin. In the case of fluid processing. All of this took associated CO2, we came up with a way enormous dedication and competence to separate the gas on the platform from our technical and managerial and re-inject it into the reservoirs, teams, who pored over the integrated avoiding its release to the atmosphere. development strategy for the Santos Basin pre-salt (Plansal), the executive plan which sets the direction for PMGC: And how did these every aspect of management, differences influence the choices and all necessary parameters to of technology and innovations? guarantee a return for the company, our partners, and Brazilian society. Solange: The solution was not a pure and simple transfer of technology already tested in other basins. The PMGC: In which ways does the Santos subsea systems for the pre-salt, for Basin pre-salt differ from the example, were subjected to different experiences of the Campos Basin? pressures, which required new and more resistant material specifications, Solange: The logistics are more complex, both for flowlines and injection systems since the accumulations are nearly 300 as well as for well construction. New kilometers from shore, which is further materials had to be tested and qualified out than the Campos Basin fields. for pipe that would be more exposed In the pre-salt, we operate at even to corrosion. In drilling, we had to use Solange Guedes speaks at the greater water depths, more than 2,000 specially equipped rigs to guarantee Offshore Technology Conference meters, with a total depth of reservoir well stability and unconventional bits (OTC) in Houston, in 2013 plus water depth between 5,500 and that could perform better in harder Photo: Petrobras Agency Petrobras Photo: 6,000 meters, which includes a layer of rock. The dynamic conditions of the PETROBRAS MAGAZINE New Dimensions Global Connections 09 ocean are more severe than in Campos periodically according the results of in October 2010. This was the first deeply rooted in the culture of Petrobras, project should be robust. That means without compromising operational and Basin, which led us to innovate new implementation of these strategies and definitive pre-salt system in the Santos and this history of finding solutions and the project chosen should best take environmental safety. To maximize riser systems. We found solutions to projects, which continually strengthens Basin. It was a decision which guided managing risk by devising technically into account the uncertainties of the production of oil and gas from the reduce pipe fatigue, especially at the the planning process. The first project to a bold and disciplined analysis of risk flexible and robust production systems reservoir, flow assurance, and so on. reservoirs, for example, we adopted topside connections and in contact start producing, in September of 2008, and ensured fantastic aggregate value, contributed to the decision to go intelligent completions for the wells with the seabed. These and other was the Jubarte field, offshore Espirito because it complemented laboratory forward with the Lula Pilot Project. and water alternating gas injection, innovations made the development of Santo state, in the northern Campos studies and computational simulations Later, we installed four more definitive PMGC: In this analysis, which were something never before done at depths the pre-salt fields a unique experience. Basin. There a well was connected to the in the identification of uncertainties systems in the Santos Basin pre-salt the factors which guaranteed the of 2,200 meters. We are also studying FPSO P-34, which already was operating and potential problems to be solved and today produce more than 700 ,000 robustness of the pre-salt projects? the use of 4D seismic monitoring in in the region and was adapted to receive before the installation of the definitive barrels of oil per day from the pre-salt the area of the Lula Pilot, to enhance PMGC: And how was the overall oil from the pre-salt during the Extended production systems. Facing great risks is layer, which includes production from Solange: There were several. One was visualization of the reservoirs across development of the projects? Well Test. This work was fundamental both the Santos and Campos basins. the high production flow per well. This thick layers of salt. The use of 4D toward reducing the dynamic was noticed in the formation tests and seismic is an efficient means to follow Solange: The strategy for developing uncertainties of the pre-salt carbonate The Buoy Supporting Risers (BSR) other tests carried out which showed the paths of injected fluids. It indicates the Pre-Salt Cluster of the Santos Basin reservoirs. One month prior, the basic was one of the innovations used in the PMGC: Did you have, in this case, a potential production exceeding in non-dislocated pockets of oil which can started taking shape in 2007, with the project was approved for the Lula Pilot, pre-salt which have been awarded by prior methodology which had already some cases, 30,000 barrels/day per be produced by a higher density grid creation of Plansal. A multidisciplinary with a leased FPSO – the Cidade de the OTC been tested, which served as a basis well. We determined, in this analysis, of wells, or by changing injection flow taskforce of seasoned professionals Angra dos Reis – when began operating for planning the development? that the reservoirs were not only highly rates and fluids. With regard to subsea began identifying and prioritizing the productive, but also had good hydraulic systems, we installed new solutions: entire scope of strategies and projects Solange: The knowledge acquired continuity. The high flow per well flexible risers at the Lula pilot and other to be implemented. This plan is updated by Petrobras in offshore exploration guaranteed a return which compensated projects; steel catenary risers (SCRs) and production has been perfected for the heavy investment required. supported by BSR (Buoy Supporting throughout its successful history in all Another metric which was managed with Risers), in the examples of FPSOs for the basins where the company conducts a great deal of discipline was the time the pilot systems at Sapinhoá and Lula its activities. Accordingly, from very of well construction activities. Process Nordeste; Steel Lazy Wave Risers (SLWR) early on, the teams responsible for the management, a disciplined application with a hump-and-sag configuration development of the pre-salt established of the learning curve, and adoption of connected directly to a floating “golden rules” to support every decision new technologies to support safety production unit, in Sapinhoá Norte. We to be taken, guided by three technical and optimization in well construction. are also going to install large-diameter principles: the first step was gathering gas export lines of the Free Standing information. This includes, among other Hybrid Riser (FSHR) type, which will things, the acquisition of high-resolution PMGC: What do you see for the permit remote internal inspection of seismic data, drilling wells, sampling future, in terms of technologies the lines. We are seeking ways to reduce and formation tests, and an Extended which could be applied to the the size and increase the efficiency of Well Test in the area of influence of each pre-salt and reduce costs? separation systems for associated CO2 production system before approving as well. We are enhancing our mastery the allocation of a definitive system Solange: The company is investing of drilling in areas of the reservoirs to the area. The second principle is in research and development with which are susceptible to a major loss that the project should guarantee an integrated approach. This lets us of circulation by using Pressurized flexibility. In other words, the production evaluate the gains obtained with the Mud Cap Drilling (PMCD) technology. system should be conceptualized to technologies which are being tested These are just some examples of the allow alterations in the drainage plans or in use to make better choices technologies we have already used, during the execution and installation for future projects. Our efforts are and will continue to use in this new phase of the project, whenever this directed toward increasing petroleum frontier to further provide support for adds value. Finally, once chosen, the recovery factors and reducing costs, our safe and profitable operations.

“OUR EFFORTS ARE DIRECTED TOWARD INCREASING PETROLEUM RECOVERY FACTORS AND REDUCING COSTS, WITHOUT COMPROMISING OPERATIONAL AND ENVIRONMENTAL SAFETY” Photo: Subsea 7 Image Bank — PETROBRAS MAGAZINE All Over Global Connections 11

Historic innovations Award received by Petrobras in 2001 In 1992, Petrobras won the OTC prize for technologies devised to develop production systems in ultra-deepwater of the Campos Basin, offshore Rio de Janeiro. A number of innovations were recognized, including wet Christmas Recognized trees installed at a water depth of more than 700 meters; a mono- buoy devised for water depths of 405 meters; utilization of innovative production facilities such as FPSOs and converted semi-submersibles, as well as mooring systems in water depths greater than 600 meters. The competence development of these technologies was supported by technological programs and a community of academic and technical experts, each with the objective of perfecting deepwater Technological innovations applied in the petroleum production systems. pre-salt win OTC’s highest honor In 2001, the company was again honored for its technological achievements at the Roncador field, where entirely

new technologies for production Bank Image / Petrobras Falcão Geraldo Photo: Roncador field in the Campos Basin development were successfully applied etrobras has received for included not only the degree of the production mark of 700 ,000 at depths exceeding 1850 meters of the third time the highest innovation shown by the technologies barrels of oil per day, on February water, such as the utilization of steel honor awarded by the developed, but also the results 26, 2015, with the contribution catenary risers (SCRs). Roncador, also in OTC, the Distinguished obtained upon implementation and the of only 37 production wells. the Campos Basin, went into operation Achievement Award for overall contribution to the industry. just 27 months after its discovery. PCompanies, Organizations, and “This award is in recognition of Institutions, in recognition of its In the case of Petrobras, the technologies Petrobras’ outstanding, significant As well, in 2007, the engineer contribution to the development of chosen for the development of pre-salt and unique achievements, and Marcos Assayag, today executive the offshore industry, and the new reservoirs were differentiated by their extensive contributions to our manager of Petrobras’ investment technologies employed to enable application in complex conditions industry. The selection committee management program for rigs and pre-salt production off the Brazilian never before faced. These conditions was extremely impressed with the stationary production units in the coast. Since the creation of the prize included microbial carbonates situated nomination. The achievements area of Exploration and Production, in 1971, only a handful of global in ultra-deepwater, beneath a layer Petrobras has made in drilling was recognized with an individual petroleum companies have ever of salt extending 2,000 m, extreme through and producing from these award from the OTC – Distinguished received this distinction a third time. pressures, variable densities of CO2 in the challenging reservoirs is world-class. Achievement Award for Individuals production fluids, and a distance from The industry has learned a lot from – for his contribution to the A group of highly qualified the coast of up to 300 km with adverse the information that Petrobras has development of technology. professionals from the offshore metocean conditions. And the results shared about the Pre-Salt in OTC industry and academia comprised achieved could not be better: in just papers and sessions. We have all the selection committee for the eight years, since the first discovery, the benefitted from your successes”, said In the center, Guilherme Estrella winner. The criteria for distinction pre-salt petroleum province surpassed OTC president Edward G. Stokes. representing Petrobras in the Photo: Petrobras Image Bank Photo: Geraldo Falcão / Petrobras Image Bank Image / Petrobras Falcão Geraldo Photo: ceremony of OTC prize in 1992 PETROBRAS MAGAZINE Energy Geek Global Connections 13

Without this previous experience gained in Campos Basin, the velocity with which these production systems were brought into operation would have been lower. Much of this knowledge was gained Pre-salt from the production projects Marlim and Roncador – technologies that also received the OTC Award, back in 1992 and 2001, respectively. To leverage this experience, Petrobras integrated the teams of professionals involved in both Campos and Santos Basins and Technology managed to reach, in only eight years, more than 700 ,000 barrels per day of oil production from the pre-salt reservoirs.

Challenging pre-salt environment Unprecedented challenges Although the basic technology for most requires innovative solutions of the solutions adopted for the pre- salt province had already been tested and developed for the Campos Basin post-salt environment and logistics, the new frontier presented an entirely he awarded technologies new challenge – says Renato da Silva selected at this year’s Pinheiro, Well Construction General Photo: Subsea 7 Image Bank Offshore Technology Manager in the Petrobras E&P area. Conference (OTC) “More than just a simple adaptation of BRS in the field at pre-lowering phase encompass a wide range existing technologies, it was necessary Tof successful decisions made to dedicate time and resources to by Petrobras and its partners, test new materials and innovative which made it technologically and solutions for equipment design and configurations, considering the economically possible to produce installation, as well as for drilling.” PETROBRAS mechanical strength of the materials oil and gas from the extensive as well as their corrosive resistance. pre-salt layer found along the The ultra-deepwater scenario of the MANAGED TO Examples of developed solutions Brazilian southeast coastline. These Santos Basin Pre-Salt Cluster revealed to meet these challenges were the new technologies incorporate the severe metocean conditions, high REACH, IN ONLY Buoy Supporting Risers system experience that Petrobras has reservoir pressures, and water depths (BSR), Steel Catenary Risers (SCR) acquired over decades of production beyond 2,000 meters, “requiring risers supported by BSR, Steel Lazy Wave in all the basins where the company for production and injection that could EIGHT YEARS, Risers (SLWR) with lined pipes and conducts its activities, adapted, in withstand the imposed loads”, says Cezar the ultra-deepwater Flexible Risers. large extent, to the harsh conditions Augusto Silva Paulo, Flow Assurance, MORE THAN faced in this new frontier. Subsea and Topside Facilities Manager, in the Petrobras Pre-salt E&P area. Contaminants “Additionally, the subsea systems to 700,000 BARRELS Concerning corrosion, it was necessary be installed needed to be designed to qualify materials that would be able taking into account the variable PER DAY OF OIL to withstand exposure to produced content of corrosive contaminants, fluids with variable contents of CO2 in particular carbon dioxide (CO2)”. PRODUCTION and, in some specific cases, H2S, which could potentially damage equipment In the face of such challenges, the designed for systems with a service life company developed new solutions, FROM THE greater than 20 years. In the case of in terms of both materials and riser flexible risers, for example, qualification PRE-SALT tests were performed to certify that both metallic and polymer parts would RESERVOIRS not degrade in this environment. In Steel catenary riser being loadead addition, studies were performed and Photo: Subsea 7 Collection into a PLSV — new technical specifications were issued PETROBRAS MAGAZINE Energy Geek Global Connections 15 for materials, covering, for example, works very closely with the Exploration injection can be moved to water the fatigue associated with corrosion. THE SOLUTIONS and Production area throughout the injection and vice-versa, whenever entire process”, says Cezar Paulo. it is needed. In the pre-salt case, To provide an effective “early warning” ADOPTED FOR the gas injection is miscible with the for eventual initial rupture of tensile reservoir oil, which improves the WAG armor wires - which support the flexible Wells efficiency. In summary, WAG in the riser structure - optical fibers are being THIS SCENARIO The production of petroleum with pre-salt is expected to enhance final installed on the topside termination a variable CO2 content also posed a recovery through pressure maintenance Collection Petrobras Photo: connector in order to detect signs of CAN BE USED significant challenge. It was necessary and improved displacement. The breakage, so preventive actions can to determine what to do with this gas displacement mechanisms were tested be taken to avoid progression into BY PETROBRAS in order to avoid its emission into the in the lab, in pre-salt cores at reservoir equipment failure. The data from atmosphere. First of all, it was necessary conditions, and the results were the sensors will be transmitted to an AND OTHER to separate it from the produced gas. encouraging. Several operational issues, optical monitor in the platform control In this sense, the technology for CO2 in the subsea design and in the field, room and, from there, to the integrity separation using a membrane system were overcome to allow WAG injection analysis team, based onshore. COMPANIES installed on the platform was decisive. in the pre-salt environment. It is the Afterwards, several options were first use of the WAG recovery method in The contribution of the manufacturers IN SIMILAR studied for the final destination of the ultra-deepwater beyond 2,000 meters. and installers of subsea equipment and CO2 produced, such as injection into pipelines, as well as the involvement ENVIRONMENTS saline aquifers. Once the separation The permeability and porosity conditions of many technical areas of Petrobras, problem was solved, the decision was of the reservoirs also led to the including the Petrobras Research Center to re-inject the gas into the producing adoption of a drilling system known as (Cenpes), proved to be decisive for — reservoir, which would eliminate its Pressurized Mud-cap Drilling (PMCD). the successful development of these emission to the atmosphere. This This technology enables the drilling materials. Although the equipment to be solution had the additional advantage of wells in environments susceptible installed was manufactured by traditional CO2 and natural gas membrane of helping to maintain the reservoir to loss of circulation, avoiding major suppliers, Cenpes followed each step separation module from FPSO Cidade pressure and miscible displacing the oil, fluid losses into fractures or highly of the qualification process. “Cenpes de Angra dos Reis with a positive effect in final recovery. porous zones in some rock formations. To increase recovery factors and to optimize the management of New materials reservoirs with, in some areas, over Renato Pinheiro recalls that the 200 meters of net pay, other advanced selection of materials was also critical techniques were adopted, such as for the drilling area. “It was necessary intelligent well completion and water alternating gas (WAG) injection. to use metal alloys that could resist the pre-salt corrosive environment. Selective completion consists of Initially, at Lula and Sapinhoá fields, separating the perforated interval some very high-grade alloys were in the well into two or more zones, used, such as super duplex, imported allowing segregated drainage of each from Japan. Along the execution of zone. To do so, each zone is equipped those projects, it became clear that with valves and chemical injection it was possible to use lower grade mandrels. The intelligent completion alloys which could be manufactured allows remote control and monitoring in , bringing economic gains to of the valves for the different zones, the wells, at least for the producers. whether for production or for injection Each well generates knowledge to be purposes. It is the first intensive use applied to the next one,” he says. of Intelligent Completion in ultra- deep water satellite wells in a scenario The development of these technologies with significant potential carbonate will leave an important legacy for the (CaCO3) scaling. The system has already petroleum industry. The solutions been installed in 25 pre-salt wells. adopted for this scenario can be used by Petrobras and other companies in similar The WAG injection is designed to environments. New alternatives are being improve the displacement and sweep studied to face new challenges that will Connection of the Annular Preventer efficiency of the oil. It also helps in arise as the engineering teams continue to the Below-Tension-Ring Rotating Photo: UOP Collection reservoir management, since gas their mission to tame the new frontier. Control Device at Lula - 19 well PETROBRAS MAGAZINE Energy Geek Global Connections 17 MEET THE AWARDED TECHNOLOGIES

First Buoy Supporting Risers (BSR)

The Buoy Supporting Risers, or BSR, the risers’ weight and assures a long are steel structures in a rectangular service life, even in severe metocean ring shape, measuring 52m (length) conditions. x 40m (width), submerged to Photo: Subsea 7 Image Bank approximately 250m and anchored to Four buoys have been installed in the the seabed by tethers. They serve to pre-salt: two at Sapinhoá field, on support the risers extending upward FPSO Cidade de São Paulo, and two from the seabed; flexible jumpers at the Lula field (in Lula Northeast installed between the BSR and the area), connected to FPSO Cidade de FPSO (floating production, storage Paraty, with ten wells in operation by and offloading vessel) complete the February 2015. connection. With this configuration, the movements of the vessel are not entirely transmitted to the rigid risers supported by the BSR. This reduces

LEGENDA Sed iaculis justo orci, eu hendrerit odio. Donec nisi elit, luctus

First steel catenary risers (SCR) with lined pipes installed by reel lay method

An important development for these rigid risers was in the materials engineering area: the use of carbon steel pipes with metallic corrosion-resistant liner (lined pipe). The construction of these pipes is both faster and cheaper than conventional clad tubing.

More than 100km of rigid risers have been installed in Sapinhoá and Lula fields, associated with the use of BSR to support the risers for the FPSOs Cidade de São Paulo and Cidade de Paraty, respectively.

Special procedures and qualification tests made it possible to use those pipes in dynamic conditions (as risers), while installing them by the reel lay method. PETROBRAS MAGAZINE Energy Geek Global Connections 19

Deepest flexible riser

There are 42 flexible risers in operation RJS-681wells to the FPSO Cidade de in the Santos Basin, installed at a Mangaratiba, in the Iracema area at water depth up to 2,220m (7,283ft), Lula field. and performing the various functions of production, service/gas lift, gas Flexible risers are conduits composed of injection, water injection, and gas export. a multilayer pipes – using both metallic and polymer materials – which transmit The production and gas injection risers the fluids produced from or injected into have the capacity to carry fluids with the well, between the sea floor and the contaminants (variable contents of floating production facility. To be applied CO2 and, in some specific cases, H2S) to the pre-salt, it was necessary to adopt in a high-pressure environment. some specific developments in order The deepest flexible riser to address the corrosive conditions and connects the RJS-647 and the water depth.

Deepest Steel Lazy Wave Riser (SLWR)

This technology consists in the use is connected to the SPH-007 well, of floatation modules along sections and linked to the FPSO Cidade of rigid risers, in order to reduce the de Ilhabela, which is moored at a weight on the topside connection and water depth of 2,140m (7,021ft), at attenuate the deflection forces of Sapinhoá Norte (Sapinhoá field). the risers in contact with the seabed. In the region where the floats are This is also the first system of this kind installed, the riser takes the form of to be connected to a spread-moored a wave or a hump-shaped curve. FPSO. Moreover, it is the first composed of lined pipes along most Petrobras installed the deepest of its length, as well as clad pipes SLWR during first quarter 2015. It in the top and bottom sections. PETROBRAS MAGAZINE Energy Geek Global Connections 21

First application of flexible risers with integrated tensile armor wire monitoring system

In order to help with managing the of the flexible risers, by means of to the platform control room, where integrity of flexible risers, a fiber optic direct evaluation of deformities in the the information captured by the optical sensor system was developed to monitor structure. Optical fibers attached to fibers will be transmitted. From there, the metallic tensile armor, located at the tensile armor wires of those risers the data will go to an on shore facility the top of the tubing. It is the first provide a kind of “early warning” signal, responsible for the system integrity. application of this kind for flexible pipe. so preventive actions can be taken before evolution into pipe failure. The risers with sensors are installed The function of the system is to detect in units of the Lula and Sapinhoá any rupture in the tensile armor wires The risers are already being installed fields, in the Santos Basin pre-salt, with the sensors attached, to be linked and will begin operating this year.

Photo: Manuel Aguiar / Galp / Petrobras Image Bank Deepest subsea well drilled with pressurized mud-cap drilling (PMCD)

Petrobras set a new technological record drilling the LL-19 well located at 2,103m (6,900ft) of water depth in the Lula Field, using the pressurized mud-cap drilling (PMCD) method from a dynamically positioned rig.

This technique enables the construction of wells in an environment of severe drilling fluid circulation losses. This situation can happen in some pre-salt reservoirs due to the presence of fractures and highly porous and permeable intervals. PETROBRAS MAGAZINE Energy Geek Global Connections 23

First CO2 separation from associated First intensive use of intelligent completion natural gas in ultra-deep-water in ultra-deep water satellite wells with high beyond 2,000m (6,562ft), associated potential for carbonate (CaCO3) scaling with CO2 re-injection

Petrobras has adopted the intensive use Some specific procedures were Petrobras pioneered the separation of CO2 associated with natural gas from an of intelligent completion in pre-salt implemented to offset the risk ultradeep water floating production unit; the separated enriched CO2 stream is being production and injection wells; so far, of carbonate scale affecting the re-injected into the producing reservoirs. In 2014, the company reached the impressive 25 wells have been completed with this intelligent completion valves. milestone of 1 million tons of CO2 re-injected, avoiding its emission to the atmosphere. technology. Aiming at an increased Intelligent completion has already This technology was first adopted at Lula field pilot project (FPSO Cidade de Angra dos oil recovery, the technology makes it been used in ultra-deepwater in the Reis). Later, the FPSOs Cidade de São Paulo and Cidade de Paraty likewise adopted the possible to continuously monitor well , at the Cascade-Chinook procedure. behavior with the use of sensors and fields, and in West Africa at the Agbami valves at the production/injection field. However, this is the first time the The separation of CO2 associated with natural gas is performed on the production strings, allowing pressure and flow technique is used in wells with a high facilities through a compact membrane filtration system, which allows an effective control in two or more well zones. potential for calcium carbonate scaling. separation of CO2 from the produced gas. PETROBRAS MAGAZINE Energy Geek Global Connections 25

Deepest offshore First use of water well 2,173m alternating gas (7,129ft) water injection method depth – injecting (WAG) in ultra- CO2 rich gas stream deep water – 2,173m (7,129ft) Lula pilot (FPSO Cidade de Angra dos Reis) operates the CO2 injection well Petrobras is pioneering the use of - 9-RJS-687 - located at the deepest water alternating gas (WAG) injection in subsea water depth, 2,173m (7,129ft), ultradeep water satellite wells with the in the world. Besides the environmental primary aim of increasing the oil recovery benefits, the CO2 re-injection helps factor. The implementation of this to maintain reservoir pressure and method is being supported by laboratory provides some miscible displacement and numerical simulations which show aimed at an improved oil recovery. incremental oil recovery due to a more efficient miscible oil displacement in porous media. In addition, the ability to perform WAG will provide for more efficient reservoir management.

The first use of water alternating gas injection in ultradeep water took place at the Lula Pilot. The successive cycles of fluid injection in the same well will allow flexibility to control the advancing fluid fronts. In case it has a positive effect on the recovery performance, its utilization will be expanded to other fields.

Up to now, this method of recovery is mostly used in mature oil fields. Adopting its use in the initial stages of production, with satellite wells in ultra- deepwater, was an innovative action implemented in pre-salt fields. PETROBRAS MAGAZINE Over the Seas Global Connections 27

EXCELLENT RESULTS, EVEN BETTER EXPECTATIONS

Production obtained in the Pre-Salt Layer confirms prediction regarding the great potential of this new frontier

Photo: Bruno Veiga / Petrobras Image Bank PETROBRAS MAGAZINE Over the Seas Global Connections 29

n February 2015, just eight years have been installed. It is important to after the first petroleum discovery mention the record time in which the PETROBRAS in the Pre-Salt Layer, Petrobras basin began production. It took a mere and its partners reached a record 30.5 months from the conclusion of the WILL PUT INTO production of 737,000 barrels first well test in Lula Field (October 2006) Iper day (bpd) of oil. This result was to reach first oil, during the extended OPERATION, IN significant for the company because it well test in ultra-deep water in May 2009. reinforced its leadership in technology for deep and ultra-deep water, and The first definitive system in the Santos THE FOURTH confirmed expectations regarding the Basin was the Lula Pilot, installed in great potential of this new frontier. In 2010 with capacity of 100,000 barrels QUARTER OF addition, this record peak in production of oil/day. The second FPSO installed demonstrated the high quality of the was the Cidade de São Paulo, in January 2015, THE reservoirs, as well as the technical and 2013, with a production capacity of economic viability of these projects. 120,000 bpd of oil and 5 million m3/ FPSO CIDADE day of gas. This was the first definitive At the time the record was set, 37 production unit in the Sapinhoá field. DE ITAGUAÍ, production wells were interconnected In June 2013, the third FPSO, Cidade to 11 platforms, six of which fully de Paraty, was installed with the dedicated to pre-salt production, capacity to produce 120,000 bpd and 5 IN THE NORTH throughout Campos and Santos Basins. million m3/day of gas. All these FPSOs are now producing at full capacity. OF IRACEMA Since the Santos Basin pre-salt discovery in 2006, 31 exploratory wells have been AREA OF THE drilled and five production systems FPSO Cidade de Angra dos Reis in the Lula field, in the Santos Basin LULA FIELD —

The pre-salt fields are located off the southeastern coast of Brazil

Besides these three systems, two The FPSO Cidade de Ilhabela has the Iracema area of the Lula field, also in new ones began operating in the same production capacity, and has the Santos Basin. This unit will have the Pre-Salt of the Santos Basin in 2014: been operating in the north area of capacity to produce 150,000 bpd of oil the FPSO Cidade de Mangaratiba Sapinhoá field since November 2014. and 8 million m3/day of natural gas. and the FPSO Cidade de Ilhabela. It is currently producing 70,000 bpd with only two production wells. In the coming years, more new The FPSO Cidade de Mangaratiba production systems will be installed began operations in October 2014, in the For 2015, the production ramp up is Iracema area of the Lula field, with the focused on the interconnection of in the concession areas, besides the capacity to produce 150,000 bpd of oil new wells to these units. In the fourth acreage conferred by the Transfer of and 8 million m3/d of gas. By the end of quarter of 2015, Petrobras will put Rights contract and the Libra project, March 2015, the unit was producing more into operation one new unit, the FPSO which will be the first area to produce

Photo: André Motta de Souza / Petrobras Image Bank Image Motta de Souza / Petrobras André Photo: than 100,000 bpd with only three wells. Cidade de Itaguaí, in the north of under the production sharing regime. PETROBRAS MAGAZINE Over the Seas Global Connections 31

Timeline - Production from Daily record: 737 Pre-Salt reservoirs operated thousand bopd

by Petrobras IRACEMA SUL AREA First Oil SAPINHOÁ NORTE FPSO Cid. Mangaratiba First Oil LULA NE FPSO Cid. Ilhabela 700 CAMPOS BASIN SANTOS BASIN First Oil 650 Bopd Pre-Salt first oil First definitive production FPSO Cid. Paraty 600 Jubarte field (EWT) system NORTE PARQUE P-34 Lula field pilot 550 DAS BALEIAS FPSO Cid. Angra dos Reis First Oil 500 P-58 THOUSAND 450 PIRAMBU AND SAPINHOÁ FIELD First Oil 400 BALEIA AZUL FIELDS First Oil FPSO Cid. São Paulo CAMPOS 350 SANTOS BASIN FPSO Cid. de Anchieta BASIN/RJ Pre-Salt first oil 300 Lula field (Tupi lead) EWT 250 FPSO BW Cid. São Vicente 200 CAMPOS BASIN/ES 150

100

50 SANTOS 0 BASIN T/12 T/13 T/11 T/10 T/08 JUN/14 JUN/12 JUN/11 JUN/09 JUN/10 FEB/13 FEB/14 FEB/15 FEB/12 FEB/11 FEB/09 FEB/10 APR/13 APR/12 APR/11 APR/09 APR/10 DEC/12 DEC/13 DEC/14 DEC/11 DEC/08 DEC/09 ABR/14 OC OC OC OC OC AUG/14 AUG/12 AUG/13 AUG/11 AUG/09 AUG/10 AUG/08 OUT/09 MAR/15

SEP/08 MAY/09 DEC/10 SET/12 JAN/13 JUN/13 MAR/14 OCT/14 NOV/14 8k 0,8k 82,9k 183,7k 262,4k 310,2k 394,8k 604,3k 600,5k Bopd Bopd Bopd Bopd Bopd Bopd Bopd Bopd Bopd PETROBRAS MAGAZINE Over the Seas Global Connections 33

Faster than ever During these eight years since the pre-salt discovery offshore Brazil, Petrobras has achieved a reduction in the time of drilling operations by 44% on average, and a 62% reduction in the time required for completions in the new province. In 2014, Petrobras drilled and completed two wells in the pre-salt with a duration under Photo: Manuel Aguiar / Galp / Petrobras Image Bank Image Manuel Aguiar / Galp Photo: / Petrobras 100 days, and recently drilled its first well in the Lula field in less than 50 days. This is a significant result if the geologic complexity of the pre-salt is taken into account, including a thick layer of salt and carbonate reservoirs, the ultradeep water environment and a lack of uniformity in the characteristics of the reservoirs.

The pace of drilling and completion activities in these adverse conditions, along with the experience gained in drilling more than 100 wells in the pre-salt province, has led the

Photo: Steferson Faria / Petrobras Image Bank Image / Petrobras Faria Steferson Photo: technical teams in a swift ascent up the learning curve, which has Man working on FPSO Cidade de much better than the international been invaluable toward steadily Paraty in Lula Nordeste field, in the average of 7.5 years (ANP/SPE, 2015). improving our results in recent Santos Basin years. Another determining factor Besides the talent of the human capital has been the introduction of involved in developing technologies innovative technologies – such as Promising horizons to enable the extraction of petroleum pressurized mud-cap drilling (PMCD), The discovery and development of from formations below the salt layer, the which enables and facilitates well the Pre-Salt Province since 2006 has company relied upon the collaboration of construction in environments with made it possible for Petrobras to access its partners. Currently three companies the risk of a severe loss of circulation. huge reserves of oil and gas. Nowadays operate with Petrobras in the blocks that This technology, applied to the the layer represents more than 30% are already in production in the Santos ultra-deepwater environment, is one of the Company’s proven reserves, Basin pre-salt: BG E&P Brasil, Petrogal of the industry achievements to be an accomplishment achieved only and Repsol , consortium recognized by the OTC this year. six years after the first production. partners in BM-S-9 and BM-S-11 blocks. The good performance in well It is worth emphasizing that the The technology developed so far is a construction is due as well to valuation of a petroleum company is reference for the continuation of the significant investment by Petrobras given by its volume of reserves, which pre-salt exploration campaign in Santos in optimization efforts. Launched represents its cash flow, or in other Basin. The robustness of these projects in 2013, the Well Cost Reduction words, the ability to generate revenue was guaranteed by the high production Program, a pillar of the company’s and consequently profits. In this sense, per well, and the considerable reduction strategic business plan, has already Petrobras benefitted enormously from in well construction times. These two Drilling rig operating achieved a cost savings of $1 billion the Pre-Salt, registering successive factors were instrumental toward in the Lula field, in the for this segment. It is expected increases to reserve/production ratios, optimization of costs and ensuring the Santos Basin that the program will generate, which ended 2014 at 19.3 years, a result fast-track pace of Pre-Salt production. by 2018, a savings of $6 billion. PETROBRAS MAGAZINE Inside Story Global Connections 35

he expertise acquired by

Photo: Márcio Mercante / Petrobras Image Bank Image / Petrobras Mercante Márcio Photo: Petrobras in oil and gas exploration – especially in the Campos basin – over several decades, the Tmaturation of this knowledge, and the demand for new reserves were areas of the Santos basin with pre- the principal ingredients in the recipe salt potential. Besides lacking the for success which has enabled the technology to drill through the salt layer, company to discover the Brazilian these were regions in ultra-deepwater, pre-salt accumulations and to launch and the period for exploration was the era of the super gigantic fields. established at only three years. In the mid-1990s, 2D seismic data It was only in the second bidding round for the Santos Basin indicated a by the National Petroleum Agency very good chance that an immense (ANP), held in 2000, when the company accumulation existed below the thick and its business partners won the layer of salt found throughout a large portion of the Brazilian coast. Even auction for the blocks that would so, there were technological barriers lead to the super-gigantic pre-salt to drilling through layers of salt, accumulations. When these blocks which could extend as far as 2,000 were acquired, the company directed meters. This challenge had to be its efforts toward development of the overcome before making the decision technologies that would be needed to to search for petroleum at this depth. drill though the thick layers of salt.

In the so-called “zero round”, in 1998, It was a massive bet. In the year Petrobras had the chance to choose after the ANP auction, Petrobras which areas it would keep following commissioned what was, at the time, the regulatory changes being made the largest 3D seismic survey in the in the oil and gas sector. At the time, world. This would provide a technical the company opted not to keep the basis for drilling to begin in the following THE IMPORTANCE years. This campaign covered an area totaling 23,100 km². “It was an extremely important decision which we took as operators of the blocks,” says general manager for Exploration OF KNOWLEDGE at Petrobras, Jeferson Dias.

Gaining knowhow was a key part of Seismic data of the Lula reservoir at the Petrobras' Center for discovering the pre-salt Visualization and Collaboration PETROBRAS MAGAZINE Inside Story Global Connections 37

Discovery together with the precipitation of For the team of geologists and Once the acquisition and processing of carbonate salts, formed nuclei which geophysicists at Petrobras, at the seismic data was underway, Petrobras would eventually become the carbonate moment the greatest challenge of returned to drilling in the Santos Basin, rocks known as microbiolites, in exploration is to deepen what is starting in waters that were not so which oil would later accumulate. known about the new oil province. The deep, with a focus on the post-salt, to geological model for the pre-salt is be able to then begin to search for oil Afterwards, owing to the changes in constantly being updated, in tandem below the salt layer in ultra-deepwater. geography and climate, the water in this with technological step change, and it is Using this approach, in 2005, Petrobras basin gradually evaporated and a thick toward this end the area of exploration The FPSO Cidade de São Vicente was found the first signs of oil in the Parati layer of salt was deposited, forming a for the company will continue to apply employed in the Extended Well Test in prospect. This prospect was situated perfect seal for the hydrocarbons which its efforts in the coming years. the Lula Nordeste field below a layer of salt that was not so had accumulated in the microbiolites. thick, but turned out to be fundamental These became the pre-salt reservoirs. because it proved that the oil industry was ready for the new frontier.

It was only the following year that an even more significant discovery was made. This confirmed the existence of a gigantic accumulation in the Tupi prospect, which indicated recoverable volumes of 8.1 billion barrels of oil equivalent (boe), which would raise the pre-salt to a new level of greatness. The area gave rise to the Lula/Cernambi field, the first super-gigantic field in the country – with reserves above 5 billion boe – and whose first oil was produced in 2009, during the long duration test in the area. After that came many other discoveries, such as the Sapinhoá, Lapa Photo: Paulo Cabral / Petrobras Image Bank Image / Petrobras Cabral Paulo Photo: and Búzios fields, among others. Above, the pre-salt layer; below, rocks of the pre-salt reservoir Pre-salt formation The history of the pre-salt formation is related to the geological separation of the South American and African continents, which began some 130 million years ago. When the continents began to separate, it formed a huge fault line, called a “rift”, whose direction ran practically parallel to the current Brazilian coastline. The rift in the area of the pre- salt was initially filled by sedimentary and igneous volcanic rocks.

With the separation of the two continents, sea water slowly began to infiltrate the gap, creating an area of shallow depth and high salinity, which is quite favorable for the growth of cyanobacteria, one of the most basic forms of life. The material excreted

Photo: Geraldo Falcão / Petrobras Image Bank Image / Petrobras Falcão Geraldo Photo: by these microorganisms,

Photo: Geraldo Falcão / Petrobras Image Bank PETROBRAS MAGAZINE Frontiers Global Connections 39

ibra, the first project regulated The first well drilled by the partnership by the production sharing was 3-BRSA-1255-RJS (3-RJS-731), THE BLOCK model in Brazil, is moving also known as NW1. Located in the forward in its exploratory Northwest section of the block, COVERS AN activities in the pre-salt of the the well had drilling and tests LSantos Basin, which confirms the great concluded in February this year, AREA OF 1,550 potential of the area. With a little over revealing the presence of an oil a year since the contract was signed column of approximately 290 meters for the exploration and production and reservoirs of good quality. KM2, ALMOST in the block, the Libra consortium – comprised of Petrobras (operator with NW1 is located about 4 km southeast THE SAME SIZE 40%), Shell (20%), Total (20%), China’s of the discovery well 2-ANP-2A-RJS, CNOOC and CNPC (10% each), and drilled in 2010 by Petrobras for the AS THE ENTIRE the state-owned PPSA – has already ANP, at a distance of some 185 km fulfilled a good portion of the Minimum from the coast of Rio de Janeiro. The METROPOLITAN Exploration Program (PEM) stipulated two production tests – performed in by the National Petroleum Agency distinct zones of the well – confirmed AREA OF (ANP), and is analyzing innovative the excellent productivity and quality technological solutions to maximize of oil (27º API) from these reservoirs. the development of the reserves. HOUSTON The second well, 3-BRSA-1267- The sheer size of the Libra project RJS/3-BRSA-1267A-RJS (3-RJS- — illustrates the magnitude of the 735/735A), had drilling concluded challenge faced by the partnership: in March, confirming the presence the block covers an area of 1,550 km2, of a hydrocarbon-bearing column of almost the same size as the entire approximately 200 meters of good metropolitan area of Houston; it is reservoir characteristics. Informally PROMISING situated in water depth up to 2,350 known as C1, the well is located in meters, and at a distance greater than the crest of the central area of the 200 km from the coast of the city of Rio Libra block, about 220 km off the de Janeiro. Under the contract signed coast of Rio de Janeiro city. A full with the ANP, the partnership will have suite of logs was acquired. Fluid until December 2017 to conclude the samples containing hydrocarbons and exploration phase of the block. CO2 were taken and are undergoing detailed analysis in the laboratory. PARTNERSHIP Two of the three requirements of the PEM have already been met: In addition to these two PEM wells, the the collection of 3D seismic data partnership plans to drill the minimum Innovation and challenge define the Libra project for the entire area of the block, and of four more wells – two being firmly the drilling of two exploratory wells. planned, while two are contingent – as The final phase, which consists of an part of the Exploration Plan approved Extended Well Test (EWT), is currently by ANP, still during the exploration planned for the end of 2016. phase, and is finalizing the reprocessing PETROBRAS MAGAZINE Frontiers Global Connections 41

EWT THE TWO For the Extended Well Tests (EWTs), the partnership will use a Floating PRODUCTION Production Storage and Offloading (FPSO) unit, which may perform up TESTS – to five tests in the Libra area. The objective is to evaluate the performance of production and to acquire dynamic PERFORMED information about the reservoir. Once this information is obtained, the IN DISTINCT definitive future production systems will be defined. The unit to be allocated ZONES OF THE to the EWTs was chartered with the consortium OOG-Teekay, as a result WELL NW1 – of a competitive bidding process. CONFIRMED For each of these tests, two wells will be interconnected to the FPSO: one production well and the other a gas THE EXCELLENT injection well. These EWTs will be an industry first adopting a gas reinjection PRODUCTIVITY system. The FPSO will have the capacity to process up to 50,000 barrels per day AND QUALITY (bpd) of oil, as well as the capacity to inject up to 4 million m³/d of gas. Most OF OIL (27º API) of the volume of produced gas will be re-injected into the reservoir to maintain pressure and to increase the recovery FROM THESE factor. A small portion will be consumed as fuel gas during the operations. RESERVOIRS The vessel is being converted in the ­— Jurong Shipyard in Singapore.

DEVELOPMENT STRATEGY The development of the Libra project is expected to follow a strategy similar of the seismic data from the area. In to the one adopted by Petrobras in the addition, subject to market condition other pre-salt fields, which consists of and regulatory approval from the splitting the actions into two different government, the partnership also phases. The purpose of phase 0 – plans to commission a new 3D seismic initiated in 2014 and expected to finish survey using Ocean Bottom Nodes in 2020 – is to acquire information, (OBN) technology, which uses stations and includes exploratory and appraisal (nodes) – instead of cables at the wells, extended well tests and/or an bottom of the sea – installed on the anticipated production system, as sea bed. This technology permits the well as a Pilot production system. gathering of a greater volume of data FPSO Pioneiro de Libra and sharper imaging of the reservoirs. The final step planned for phase 0 is a in the Jurong Shipyard Pilot Project, still subject to consortium in Singapore In preparation for the drilling of the next and regulatory approvals, and is wells, the Libra consortium contracted estimated to begin operations in the end two new rigs, both expected to start of the decade. The Pilot Project would operations in the first half of this year. support the definition of the main Photo: OOGTK Collection PETROBRAS MAGAZINE Frontiers Global Connections 43

full-field development decisions Santos Basin pre-salt, made Petrobras Other potential technologies to be applied at Libra are: to be taken. The notional project a recognized world leader in deep plan includes the drilling of up to water exploration and production, High-capacity production units (above 200,000 bpd of oil and 20 wells. Subsea satellite wells will and provide the foundation for 16 million m3/d of gas). Most of the pre-salt units today have be equipped with subsea trees and Libra’s production development. capacity of 150,000 bpd of oil and 6 million m3/d of gas; connected to a leased FPSO via flexible lines. The FPSO will likely be able to To develop the production from Libra, Subsea layout for ultradeep water, combining the use of rigid production process up to 150,000 bpd of oil and the partnership plans to deploy many lines, production manifolds and flexible risers to connect the wells. These to re-inject up to 12 million m³/d of of the technologies currently used in solutions allow a reduction in the total number of risers, as well as provide gas. Currently, the partnership is the pre-salt. The specific characteristics flexibility to accommodate eventual changes in the position of the wells; evaluating new alternatives for the of this new province require the development of the Libra structure. application and development of state Pressurized Mud Cap Drilling (PMCD), technology which permits the of the art technological solutions, some drilling of wells while avoiding the loss of circulation, i.e., the infiltration Then in phase 1 – which is planned of which have already been mastered of drilling fluid into fractures or caverns present in some formations; to occur by 2030 – the definitive and applied by Petrobras. Various production systems will go into advancements have been achieved Multiplex Smart Completion, which main advantage is to allow simultaneously operation. By adopting this strategy in recent years, which have permitted controlled reservoir drainage from two or more zones of the reservoir; of gradual data acquisition, the not only stable drilling across the consortium expects to reduce risks thick salt layer, but also a significant High Pressure CO2 Separation (Hi-Sep), technology being developed by the and optimize the full field operation reduction in time and cost of drilling Petrobras Research Center (Cenpes), with the objective of permitting the subsea design as production is developed. activities and well completion. removal of dense phase CO2 for reinjection into the reservoir. The equipment – comprising a subsea separator and a pump installed on the sea bed – will Among the technologies applied in bring considerable reduction both in cost and weight of future platforms, since part of separation process will be done in the seafloor and not on the TECHNOLOGIES the pre-salt and now being adopted The knowledge obtained along for Libra, one stands out, which is host. The main advantage of this technology is to increase the oil production with the technologies developed by high-resolution seismic that enables on platforms that previously were topped by the produced associated gas; Petrobras through more than 35 years the geoscientists to “see” through of exploration and production in the the thick salt layer. Thanks to Innovative design for well projects with the goal of reducing Campos Basin, combined with ten the use of numerical geologic the time and cost of drilling and completion. The Libra field is located 220 km off the coast of Rio de Janeiro years of successful activities in the modeling technology capable of adequate representation of complex reservoirs, geologists Drilling team ready to spud the and reservoir engineers are first Libra well Photo: Petrobras Collection able to predict production THE HIGH- behavior with more precision over time. The Buoyancy Supported Riser (BSR) system, RESOLUTION a technology currently used at the Sapinhoá field, in the SEISMIC Santos Basin pre-salt, is an example of technology that ENABLES THE could be used in Libra. GEOSCIENTISTS The adoption of TO “SEE” new 3D seismic data processing THROUGH technologies in Libra area allows THE THICK the identification of geological SALT LAYER surfaces with greater continuity ­— and resolution PETROBRAS MAGAZINE Dialogues Global Connections

Photo: Divulgação BG Brasil 45 Photo: Cris Isidoro Photo:

From the left to the right: Tomas Garcia Blanco, Nelson Photo: Cris Isidoro Photo: Silva, and Carlos Alves

PMGC: How do you evaluate the results of the partnership with Petrobras “IT IS VERY GOOD TO BE ABLE TO in the Santos Basin pre-salt? COUNT ON A SOLID PARTNER SUCH WORKING Silva: The relationship we have built with Petrobras is based on mutual AS PETROBRAS, THE LARGEST respect and backed by a high level of technical expertise each team possesses. In the projects where we are SPECIALIST AND REFERENCE IN working together, we are focused on continual improvement in the results and DEEP AND ULTRA-DEEPWATER” contribute our experience to overcome technological challenges. Our team’s NELSON SILVA efforts have been concentrated on TOGETHER providing support to the development — and application of technologies, many times innovations, which fine tune our Santos Basin operations. Alves: Galp/Petrogal has been part which today illustrate this successful Interviews with Nelson Silva, CEO of BG South America, From the perspective of BG Group, we of this project since the beginning, partnership. The discovery of these Carlos Alves, CEO of Petrogal Brasil, and Tomas Garcia Blanco, provide relevant contributions based nearly four decades now. Initially hydrocarbon accumulations – located on our experience in other markets categorized as “high risk/high reward”, 300km from the shore, in water depth CEO of Repsol Sinopec Brasil, about the successful partnership and different countries. In the same it is an extremely complex project from over 2,000m, and protected by a thick way, it is very good to be able to count a technological standpoint which has layer of salt – required professionals with Petrobras in the pre-salt on a solid partner such as Petrobras, required high levels of investment with a high degree of specialization, and the largest specialist and reference from all the partners who are involved. the technical resources and equipment, in deep and ultra-deepwater. We The results speak for themselves: the capable of overcoming these challenges. greatly value all the expertise the gigantic reservoirs of Lula, Iracema, Iara, Galp found in Petrobras an operator with company brings to our projects. Júpiter and Carcará. These are names the technical capacity to surpass these PETROBRAS MAGAZINE Dialogues Global Connections 47

obstacles, who always willing to discuss about the pre-salt, in the area of subsea as well as continuous sampling of fluids better solutions with its partners. engineering, for example, we could and pressure readings in practically Galp is proud to have been an active point out the Buoyancy Supported all the wells drilled. In the area of contributor alongside its partners to Riser (BSR) project which uses buoys drilling and completion of wells, the obtain success with this project, which anchored to the seabed to permit free main technologies developed had to today has become a world reference. standing riser support at the surface do with safety, integrity of the wells of the ocean, greatly attenuating the and operational efficiency. Among Blanco: The partnership with Petrobras movements of the production facility. these we can cite: directional drilling in the pre-salt blocks of the Santos Basin This project won the Technological in salt zones; hydraulic fracking in is great, and the relationship is based Innovation Award from the National horizontal wells, and materials designed on mutual respect. Petrobras is a first Petroleum Agency (ANP). More recently to withstand the high levels of C02; rate operator and what the company was the installation of the first wet increasing the rate of penetration in is doing in the pre-salt could not be Christmas tree using cables in the the reservoir; and developing wells accomplished by any other company Sapinhoá field. This is another important that are relatively remote. In the area of in the world on its own. The company innovation for the pre-salt, because it subsea engineering, there have been is open to our recommendations and permits operation of the fluid control some extraordinary breakthroughs: listens to our concerns in regard to valves via remote. We participated in qualification of flexible lines, umbilicals, project implementation. For these this project, offering technical support wet Christmas trees designed for Photo: Steferson Faria / Petrobras Image Bank Image / Petrobras Faria Steferson Photo: reasons, even though we have and the results were very promising. the conditions of the produced and other partners in other parts of the injected fluids (presence of C02 and world, for us the best partner we Alves: The main technological high pressure) and the water depth could have in Brazil is Petrobras. challenges encountered in the of 2,500 m; qualification of flow lines development of the pre-salt area are with thermal insulation for ultra-deep related to: surveying and reservoir water and qualification of flow lines for PMGC: Which technologies, in your modelling; drilling and well completion; high pressure gas injection with CO2; opinion, were the most important to subsea engineering; flow assurance; development of various riser systems: meet the challenges of exploring and separation and processing of fluids freestanding hybrid risers, buoy- producing in the pre-salt areas, where and floating production units. In supported rigid catenary risers (BSR); the projects are located in ultra- regard to reservoir modelling, the and Steel Lazy Wave Risers (SLWR) deepwater, with reservoirs below the most important methodologies and supported by buoyancy modules. The salt layer and in geologic formations technologies developed included main technologies developed for flow that were not well understood? integrated reservoir modeling, the assurance relate to the prevention of installation of a permanent 4D seismic Silva: The exploration of hydrocarbon monitoring system, the intensive use reserves located in deep and of magnetic resonance in well profiling, ultra-deepwater in the pre-salt is a major challenge for Brazil, but also represents an opportunity to “THE RESULTS SPEAK FOR increase our production and to begin a real technological revolution with the THEMSELVES: country as its protagonist. Our industry has suffered from rising capital and THE GIGANTIC RESERVOIRS operational costs, without having seen “EACH TECHNOLOGY USED IN corresponding gains in productivity. OF LULA, IRACEMA, IARA, Today exploration has to be focused on THE PRE-SALT HAD A ROLE the reduction of cost and time, with a greater emphasis on project profitability. TO PLAY IN OVERCOMING JÚPITER AND CARCARÁ. The challenges are in the area of local content requirements, competitiveness THESE ARE NAMES WHICH allied with sustainability, as well as THE CHALLENGES simplification and standardization. TODAY ILLUSTRATE THIS Petrobras, along with all its partners, ENCOUNTERED IN THIS NEW has clearly done an excellent job SUCCESSFUL PARTNERSHIP” toward finding innovative solutions, GEOLOGIC FRONTIER” and clearly the experience and results CARLOS ALVES Man working on FPSO Petrobras has obtained for 20 years in TOMAS GARCIA BLANCO Cidade de Paraty in Lula the Campos Basin gives the company — Nordeste field uncontestable leadership. Thinking — PETROBRAS MAGAZINE Dialogues Global Connections 49 hydrate formation; paraffin deposits PMGC: To what degree was the ability to overcome the challenges we Foundation (Fapesp), is our investment along the production flow lines; control exchange of knowledge between faced. A wide range of tools have been in a research center for natural gas. In Rio “THE ENORMOUS AMOUNT OF of scale formation and temperature the companies involved in the used to enable this exchange of know- de Janeiro, with the Federal University of management along the flow lines. In the development of the pre-salt how, such as: development workshops Rio de Janeiro, we are developing studies KNOWLEDGE ALREADY GAINED area of separation and processing of areas, and in which areas? to share expertise; joint industry into advanced recovery of oil production fluids, the main technologies developed development projects (JIPs), and others. in reservoirs. All of these initiatives, as ALLOWED PETROBRAS AND ITS pertain to the optimization of processes Silva: Joining forces is the best way to well as the projects we are developing for separation of the production and approach such challenging projects as Blanco: Petrobras is one of the world with Petrobras and our suppliers, of the contaminants (CO2 mainly). This those in the pre-salt. At BG Brasil, we leaders in deep and ultradeep-water have been searching for solutions PARTNERS TO OVERCOME THE will allow the use of lighter systems count on an excellent technical team engineering, having accumulated to the challenges of the pre-salt. that take up less space on the floating which is always willing to contribute knowledge few other companies in CHALLENGES WHICH THE PRE-SALT production units. Finally, in the area of to and support the work of Petrobras the world have. Specifically in the Alves: The collaboration between the production vessels (FPSOs), most of Operations. Working together has development of the pre-salt, we companies and research institutions, BROUGHT TO THE DEVELOPMENT the progress has been related to the produced impressive results: we fine- collaborated intensively with our including universities, has been very mooring systems for ultra-deepwater tuned our performance in drilling and experience in seismic processing, positive. The companies have gotten OF THE PRODUCTION” and rough sea conditions; interaction of completion of wells, reducing the time which raised our level of knowledge together to identify and discuss the the risers with the system; optimization of operations on average by 25% from about the pre-salt reservoirs and this principal challenges we expect to face, CARLOS ALVES of space and weight to accommodate 2013 to 2014; in Tupi and Iracema, we set supported optimal well placement. We have shared their respective experiences the installation of a wide range of a record by managing to reduce the time are world leaders in this segment of and defined the methodology for complex systems which constitute between discovery and first commercial seismic data processing, and we are researching possible solutions for — a floating production facility. production to only four years. It’s worth working together with Petrobras in the problems identified. In this sense, pointing out as well that of the 10 wells various projects with this objective. Petrobras, in its role as operator, has Blanco: Each technology used in the which are most prolific in Brazil, 9 are in provided leadership and has fostered (Cenpes) has been very relevant toward technological centers established pre-salt had a role to play in overcoming the Lula and Sapinhoá fields, where we a good working among all the various attaining the results we have achieved by suppliers in the country, and the challenges encountered in this own 25% and 30% respectively. None of PMGC: How did the companies, members of the partnerships. The thus far. Petrogal Brasil, alongside universities, who had an important new geologic frontier. To point out this is coincidence. It is the result of a universities, and research research centers (Brazilian and the other partners of Petrobras, role in research needed to respond a few of them, I would mention the great deal of work and total cooperation centers interact in order to international) which were selected to participates in this joint effort toward to the various technical demands techniques used for drilling the wells, between the partners, which have given meet these challenges? participate in the search for solutions the goal of finding the solutions of the pre-salt. The suppliers also technologies for reservoir management, their best to achieve ever better results. have equipped their laboratories to the technological challenges. brought a number of solutions which the acquisition and processing of seismic Silva: At BG Brazil, we have adopted with enough resources to fulfill their had already been applied elsewhere in data, where we have great expertise, Alves: The fact that production a model of open innovation, placing commitments and remain dedicated Blanco: The development of needed the world, whose specifications were and the development of innovative development in the area is being led our bets on partnerships to develop toward that goal, presenting their technologies for pre-salt production qualified and adjusted to the extreme materials and monitoring systems. by a team of various operators, who technologies, both with universities findings as appropriate. The contribution was almost entirely performed in Brazil pressures, levels of contaminants each have technological specialties and research centers – using to the of the Petrobras Research Center by the Petrobras Research Center, and CO2 found in the pre-salt. and tradition, has greatly facilitated the fullest the vocations and potentialities of Brazil’s institutions – as well as companies and suppliers to the industry. That is how we improved our existing capacities and increased our knowledge in order to meet the “REDUCING THE TIME challenges faced by the industry. This model has been very effective and we OF OPERATIONS – WHICH have a number of success stories, such as the Supercomputer for the processing ALSO MEANS BEING MORE of 3D and 4D seismic data, which is a project with Senai Cimatec of Bahia,

COMPETITIVE – IS ONE OF the Federal University of Rio Grande do Bank Image / Petrobras Reis Rogério Photo: Norte (UFRN), the State of Bahia, and Embrapii. Besides this project, we have THE MOST IMPORTANT FlatFish, part of a Robotics Program being developed jointly with Senai OBJECTIVES, MOST ESPECIALLY Cimatec, DFKI of Germany, and Embrapii. This represents a first step toward IN REGARD TO DRILLING” developing an autonomous vehicle for subsea inspections which will provide NELSON SILVA greater security and reduce operational costs. Yet another collaborative effort, “The contribution of the Petrobras Research Center (Cenpes) has been very relevant toward attaining — along with the Sao Paulo State Research the results we have achieved thus far”, says Alves PETROBRAS MAGAZINE Dialogues Global Connections 51

“TODAY WE ARE THE SECOND LARGEST INTERNATIONAL OIL PRODUCER IN BRAZIL, AND WE PLAN TO DOUBLE OUR PRODUCTION IN THREE YEARS AND QUADRUPLE IT IN EIGHT YEARS” TOMAS GARCIA BLANCO —

PMGC: How do you envision the future of pre-salt development? What new technologies might be used to reduce costs, given a scenario of lower oil prices?

Silva: The development of new technologies will have an even more relevant role in the current industry context. With a real need to reduce costs and enhance efficiency, new FPSO Cidade de Angra dos processes, methodologies and Alves: Among the new technologies Reis in the Lula field, in the equipment will make the difference Alves: In my opinion, the future of being developed which I believe will Santos Basin in achieving our goal with the development in this area is going be put to work in this next phase, optimization of resources and in the direction of finding ways we can cite: in the area of reservoirs, increased profitability. In this sense, to significantly reduce the costs the development of computational reducing the time of operations involved. The enormous amount of PMGC: Which new technologies systems which will enable integrated – which also means being more knowledge already gained allowed might be adopted for drilling, modeling of the reservoir, involving competitive – is one of the most Petrobras and its partners to overcome Blanco: Repsol Sinopec is committed lifting, separation of fluids, wells, lifting systems, flow and important objectives, most especially the challenges which the pre-salt to the continued development of and other segments offshore? production installations including in regard to drilling. We have seen brought to the development of the the pre-salt projects where we are continuous monitoring of production some important advances in regard production. I believe the next phase working as the partners of Petrobras. Silva: Petrobras and its partners have data and permanent 4D seismic to drilling wells, which promise will be geared toward developing and We are in block BM-S-9, developing already come quite far in regard to all monitoring. In the area of well drilling Blanco: The development of the pre- to make pre-salt exploration and improving technologies in order to the Sapinhoá field, which has been these phases of operations and have and completion, we can cite drilling salt fields is undergoing a process of development much more efficient. optimize and reduce project costs. in production since 2011, and Lapa, done excellent work in the pre-salt, with lasers and the more intensive continual innovation. Based on the These are new approaches for drilling whose first oil is expected in 2016. with substantial gains in efficiency. use of managed pressure drilling data obtained in the projects so far, and well completion. For example, We also have the Sagitário project, However, there is still much to be (MPD) which will enable a drastic Petrobras and its partners identified by drilling wells in three phases, which is still in the exploration done, and we are developing very reduction in non-productive time, three areas for improvement and we are able to reduce by seven to phase. However, our main business important innovations in our joint caused by a serious loss of fluids sought to implement technological ten days the time spent as well as in Brazil is the discovery of a natural projects with Petrobras. The pre- in pre-salt wells. In addition, MPD refinement in future projects to the amount of materials used. In gas deposit at Pão de Açúcar, in the salt is challenging by nature, and we technology can reach zones of the improve cost savings and economies the completion phase, with a new Campos Basin pre-salt, where we are will have to continue to find ways to reservoir that are not possible to drill of scale. As the pre-salt projects design, we can maintain the full the operators and have Statoil and refine our process and operations. with conventional techniques. In the continue to advance, the supply capacity to manage the reservoir Petrobras as partners. Today we are We are going to continue working area of separation and processing of industry will also deepen its search via remote, which guarantees a the second largest international oil together to meet these challenges fluids, we hope to develop technologies for solutions which provide ever- reduction in time required for producer in Brazil, and we plan to and achieve even better results. to reduce the area and weight the better solutions to the challenges completions by 25 days, combined double our production in three years processing systems occupy on the of this new geological frontier. with the economies in drilling. and quadruple it in eight years. platform. Toward this goal, compact The industry grows together.

subsea separation and processing Bank Image Motta de Souza / Petrobras André Photo: systems should become available. A chat with sociologist Domenico DIVE EVEN DEEPER De Masi and economist Michael Green, a trip through Brazilian coral INTO THE PETROBRAS reefs, urban interventions by artists OSGEMEOS, and much more. Access all the content of edition 65, as well as MAGAZINE GLOBAL videos, photo galleries and exclusive audio files on your tablet and at CONNECTIONS www.petrobras.com/magazine.