The Campos Basin Case: Unlocking Value from Mature Offshore Brazilian Assets – Petrobras

Abstract

Abstract The oil shock of the 1970s challenged O&G operators for a step change in R&D with direct impact on investments in new production frontiers, such as the Brazilian offshore. More than 40 years after the first oil, around 14 billion barrels of oil and gas (boe) have already been produced in the Campos Basin and two OTC awards have been granted with the Campos Basin achievements in Marlim and Roncador fields. Today, Campos Basin production accounts for around 30% of all Brazilian O&G output. Moreover, there is still a lot of potential value to be extracted from those assets in association with the extension of the term of the contracts of the main Concessions for another 27 years. In the continued strategy of Active Portfolio Management, any Campos Basin assets that do not fit into the company's portfolio focus are either divested or decommissioned, but still Campos Basin is a core area with substantial reserves to be booked, low reservoir risk and the potential to further reduce lifting costs. We can name Marlim, Roncador and Jubarte fields as examples of assets prioritized due to their value generating potential. These "world class" assets have been further developed with a specific approach: the Integrated Development Plans, with investments in complementary wells in existing fields to manage risks, enhance the recovery factor, as well as a governance to support decision making process between new Production Units or Lifetime Extension of those currently operating. All this governance is managed under a formal "Campos Basin Renovation Plan", a program that challenges the teams to identify opportunities to increase reserves and add value to the company. In this context, considering the relevance of this world class oil & gas province, this paper intends to describe how the team is facing the challenge of generating extra value through investments in mature fields in the Campos Basin, considering its decision-making process, the increase in the recovery factor, reduction of costs, strategic alliances, and articulation with Regulatory Agencies.