The tool allows dynamic visualization of contracts since 2014

In yet another action to increase transparency in relation to the company’s activities, Pré-Sal Petróleo (PPSA) is launching this Wednesday (21) the Panel of Tenders and Contracts. The Panel was created using a Business Intelligence (BI) tool and has been consolidating information since 2014. The platform makes it possible to dynamically view all contracts entered into by the company, both current and terminated.

So far, PPSA has already hired 464 people, with a total disbursement of R$ 184.6 million, around 26% below the budgeted amount. Of this total, R$ 122.2 million refer to contracts in force.

When navigating the panel, the reader can filter by contracting date, amount, object and tender mode. The Panel also has a cloud of words that facilitates the search by categories. When clicking on a certain word, the tool presents a table with all the details of the hiring carried out in that category, including access to the available documents.

The initiative is part of the company’s Strategic Planning, which provides for the implementation of communication actions to increase public transparency. The panel also responds to a demand from the PPSA Ombudsman, which seeks to facilitate access to contracts. The work was carried out in collaboration with the areas of Communication and Ombudsman, Tenders and Contracts and Information Technology.  This is the third BI panel created by the company. There is also a panel with data on production and collection of contracts under the production sharing regime and an interactive library with the oil and natural gas sector legislation.

Access the panel: https://www.presalpetroleo.gov.br/licitacoes-e-contratos/

The 1st Cycle of the Permanent Production Sharing Offer (OPP), carried out today (12/16) by the National Agency of Petroleum, Natural Gas and Biofuels (ANP), had four blocks purchased, out of the 11 on offer, generating a collection of R$ 916,252,000.00 in signing bonus (72% of the maximum possible). From 2023, Pré-Sal Petróleo (PPSA) will manage all contracts, as well as 19 other contracts that currently operate under a production sharing regime. The contracts signing is expected to take place by 04/28/2023.

The ANP General Director, Rodolfo Saboia, highlighted the fact that two of the areas, Água Marinha and Norte de Brava, had competition. “In Água Marinha, the minimum percentage of excess oil was exceeded by 220% and, in the case of Norte de Brava, the percentage offered had a premium of almost 171.73% in relation to the minimum. With this, we guarantee more resources for Brazilian society in the long term, through greater collection on the oil production profit resulting from the auction”, he added.

As in all rounds under the sharing regime, in this event, the signature bonuses (amount paid in cash by the companies that win areas in the tender process) were fixed and determined in the public notice. Thus, the criterion for choosing the winning companies was the oil surplus for the Union. The tender notice established a minimum percentage of oil surplus for the companies to make their bids.

The oil surplus is the portion of oil and/or natural gas production to be shared between the Union and the contracted company, according to criteria defined in the contract, resulting from the difference between the total production volume and the portions related to royalties due and to the cost in oil (portion of production corresponding to the company’s costs and investments in the field operation).

See the results of the Round:

PPSA projects revenues of US$ 157 billion just from the sale of Union oil over the next ten years 

Production sharing contracts will contribute around US$344 billion to public coffers over the next ten years. The projection is from the study “Estimating results in production sharing contracts”, prepared by Pré-Sal Petróleo (PPSA) and released this Tuesday (29), by the company’s CEO, Eduardo Gerk, at the 5th Pre-Salt Oil Technical Forum. Most of this amount will come from the sale of oil that the Union is entitled to in contracts until 2032, which, according to the study, will generate revenues of US$ 157 billion. The other resources will come from royalties’ payments (US$ 100 billion) and taxes collected by the producing companies, totaling another R$ 87 billion.

According to the study, average oil production under a production sharing regime will rise from the current 668,000 barrels per day (bpd) to approximately 2 million bpd in 2027 and reach 2.9 million bpd in 2030, which will represent more than half of the national oil production and about 2/3 of the total produced in the pre-salt that year. If there are no new production sharing contracts, a decline in this volume is expected for the next two years, reaching 2032 with 2.5 million bpd.  From 2023 to 2032, contracts will accumulate a total of 7.7 billion barrels produced.

The share of daily production destined for the Union, calculated based on the supply rate of surplus oil by the Union in each contract and the oil cost recovery limit for each area, will also show continuous growth until 2031, with a slight decline in 2032, for the same reasons. The best year will be 2031, when production will reach 920,000 bpd, more than 40 times the volume of average daily production in the Union in 2022 (22,000 bpd on average from January to September).  The forecast production for the Union in 2031 is comparable to the United Kingdom current production and superior to that of countries such as Colombia, Argentina and Venezuela.

“The study shows that, in ten years, the Union will have accumulated 1.9 billion barrels of oil. This entire amount will be traded by PPSA. We are preparing for the company escalation. By the end of this decade, the PPSA will be raising more than US$ 20 billion per year for the public coffers”, explained Gerk.

To develop these contracts, the industry will invest around US$ 72.5 billion over the period studied. The investment peak is expected for the year 2028, when US$ 11.3 billion will be invested. The study estimates that 21 new FPSOs (Floating Production, Storage and Offloading Units) and 319 wells will be required.

Study premises

The PPSA Strategic Planning team carried out the work using an internally developed economic evaluation model. To estimate the future oil price, the Energy Research Office (EPE) reference scenario of October 2022 was used. To project the first oil, the production curves, investments and costs, the existing Development Plans and estimates of the PPSA technical team were used, eventually having a typical pre-salt project as an analogue.

To calculate the investments, the following assumptions were adopted: for FPSOs – units with a capacity of up to 225 thousand barrels/day, considering their investments made in the three years prior and during the first oil; for wells – 1 exploratory well per project and 1 pair of producer/injector wells for every 24,000 barrels of FPSO capacity.

To learn more, download the e-bookEstimating Results in Production Sharing Contracts 

Opening lecture of the event will be given by the Minister of Mines and Energy, Adolfo Sachsida

The 5th Pre-Salt Oil Technical Forum, an event that traditionally brings together leaders from the oil and gas sector, will take place in person on November 29, from 8:00 am to 5:00 pm, at the Convention Center of the RB1 Building, located in downtown Rio de Janeiro. The opening lecture will be given by the Minister of Mines and Energy, Adolfo Sachsida. The event will be broadcast live on the epbr Agency’s YouTube channel.

The CEO of Pré-Sal Petróleo (PPSA), Eduardo Gerk, will present the new edition of the study “Estimating Results in Production Sharing Contracts”, with projections on the average daily production of the contracts and the collection to the public coffers and investments for the next ten years.

The Forum will also feature the participation of the Geological Assessment Superintendent of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), Juliana Ribeiro Vieira, who will present the potential of the Permanent Offer areas, and the CEO of the Geological Survey of Brazil, who will give a lecture on the company’s projects for the oil and gas sector. Two thematic panels will also be held: one on logistics alternatives for pre-salt oil, with the participation of executives from Petrobras, Equinor and TotalEnergies, and another on natural gas flow, with presentations by NTS, Qatar Energy, GasBridge and Enbridge representatives.

In the afternoon, an exclusive technical session for guests will be held for the first time.  This initiative is the result of the work of the PPSA’s Technological Management Committee and aims to discuss the prevention and fight against the loss of fluid circulation in the pre-salt.

Galp Energia Brasil was the winner of the direct sale process carried out by Pré-Sal Petróleo (PPSA) this Tuesday, the 17th, to sell the Union’s first oil load, of 500,000 barrels, arising from Atapu’s production sharing contract. The cargo will be available for loading in the second quarter of the year.

Galp was the company that offered the highest price for the Union’s oil, based on the Reference Price established for Atapu’s oil by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). According to PPSA estimates, the commercialization of this load should generate a collection of R$ 210 million, approximately, to the National Treasury at the time of loading, as payment is based on the reference price of the month in which the cargo is delivered to the buyer.

Ten companies that already operate in the pre-salt layer were invited to participate, and four of them were qualified and sent proposals. All price offers were opened in real time in a meeting held by the Teams platform between PPSA and the participating companies, accompanied by Ministry of Mines and Energy representatives.

Galp, through its subsidiary Petrogal Brasil, operates in more than 26 oil and natural gas projects in Brazil. Galp Energia Brasil was also the winner of the process carried out by PPSA, in August 2022, for the sale of the first oil load from Sépia’s Union, also of 500 thousand barrels.

Pré-Sal Petróleo S.A (PPSA), a company linked to the Ministry of Mines and Energy (MME), raised R$ 4.71 billion in 2022 with the sale of the Union’s share of oil and natural gas in production sharing contracts. The record collection is about four times the amount recorded in 2021 (R$ 1.22 billion). The result reflects the increase in production in production sharing contracts and the situation in the international oil price market.

Throughout 2022, 22 Union oil cargoes were delivered, totaling 10.9 million barrels. The amount was divided into ten loads from Campo de Mero, four from Tupi, four from Búzios, three from Entorno de Sapinhoá and one from Sépia. With the exception of the latter, which had a separate commercialization process, won by Galp Energia Brasil, the others were sold in an auction held at B3, in 2021, which was won by Petrobras. During the period, 64.89 million cubic meters of natural gas from Sapinhoá, Tupi, Búzios and Tartaruga Verde fields were also sold to Petrobras.

“In 2021, we sold 3.5 million barrels of Union oil, while in 2022 we reached almost 11 million barrels. Our studies show that growth will continue to accelerate. Today, the daily average of oil in the Union is 40,000 barrels. In five years, it will be 450 thousand barrels and, in ten years, almost 900 thousand. We had an excellent result in the auction held in 2021 to market Union cargo and we are reaping the results. Our next step will be to carry out a new large-scale auction in 2024, for the commercialization of future Union cargo”, explained Eduardo Gerk, the company’s CEO.

Since 2013, when it was instituted, PPSA has raised R$ 8.63 billion for the Union, of which R$ 7.33 billion were with the oil and gas commercialization activity and R$ 1.3 billion with the equalization of expenses and volumes carried out by the company in areas where the Union participates in Production Individualization Agreements (AIPs). All funds raised are directed to the National Treasury.

Due to restrictions imposed by electoral legislation and the jurisprudence of the Electoral Justice and in compliance with the instructions of the Special Secretariat for Social Communication (Secom), Pré-Sal Petróleo (PPSA) informs that some changes have been implemented on the website and on the official social networks of company during the Electoral Closed period, which begins on July 2nd and ends on October 2nd, and may be extended in the event of a possible 2nd round.

The company's Linkedin and YouTube pages will be temporarily disabled during this period. Communication from the company to society will be restricted to the company's website, focusing on technical and strictly informative data. To comply with legislation, some news and presentations, as well as videos, were temporarily hidden from the site.