Of discoveries

The oil discoveries made in the pre-salt region in the basins located in Southern and Southeastern Brazil are a historical milestone for Petrobras. The assessment of this area’s oil potential points to volumes of oil and gas which, if confirmed, will significantly increase Company reserves and place it in the group of countries that hold major oil reserves.

The pre-salt layer is nearly 800 kilometers long and 200 kilometers wide, ranging from the coast of Espírito Santo to Santa Catarina. The first area to be assessed, Tupi, holds volumes estimated at 5 to 8 billion barrels, a fact that, if proven, would rank it as the biggest oil field discovered in the world since 2000. The estimates indicate Tupi might increase Petrobras’ reserves by more than 50%.

The surveys were kicked-off in 2005 and, since then, light oil fields have been found in the Parati, Carioca, and Caramba blocks and in the Caxaréu and Pirambu fields, both in the Campos Basin. A large volume of natural gas and condensate was also discovered in the Jupiter block. Petrobras expects to start producing in Tupi in 2010, via a pilot project of 100,000 barrels per day (5% of the Brazilian production).

In addition to their oil potential, the discoveries made in the pre-salt region stand out for the quality of their oil. Most of Petrobras’ reserves are composed of heavy oil, and the pre-salt fields, which hold light hydrocarbons, natural gas and condensates, may change the profile of the Company’s reserves, reducing light oil and natural gas imports.

Of challenges

To reach the pre-salt layer, Petrobras had to overcome many technological challenges. The salt layer is about 2,000 meters thick and the wells are located at a depth of more than 7,000 meters below the water line.

Pioneering processes are being tested at the Company’s Research Center, such as opening caverns in the salt to serve as reservoirs for the gas, until the pilot project goes online. Another innovation that is being analyzed is the possibility of generating energy in the area itself, which would then be transported to shore over submarine power cables.

Of energy

The discovery of the large volume of gas in the pre-salt region stepped-up enhancement projects for the supply of natural gas, considered the cleanest of all fossil fuels that are consumed in the world. The Southeast-Northeast Gas Pipeline is already under construction. The Cacimbas-Vitória, Cabiúnas-Vitória, and Cacimbas-Catu sections total 1,384 kilometers of gas pipelines, an important increase in the Brazilian network.

Catching a glimpse of the excellent opportunities, the Company is also investing in new import sources for the input in the liquid form – Liquefied Natural Gas (LNG) -, which is taking-on global importance for its logistic advantages. Two regasification terminals will be inaugurated in 2008, in Pecém (Ceará) and in the Guanabara Bay (Rio de Janeiro) to supply, prioritarily, the thermoelectric segment. With these terminals, Petrobras will become an international player in the LNG market.

Of efficiency

To keep-up with all of this growth, the Company’s offshore structure is also being boosted. There will be dozens of new platforms and more than a hundred support vessels, in addition to the construction and lease of drilling rigs, component acquisitions, and to the hiring of several services.

These work fronts represent jobs for thousands of Brazilians. The Rio de Janeiro Petrochemical Complex (Comperj, currently in construction in Itaboraí) alone will generate 212,000 direct and indirect jobs and have a nationwide income effect.

Investments of some $8.38 billion have been foreseen for the Comperj, which will increase the Brazilian production of petrochemical products and process nearly 150,000 barrels/day of domestic heavy oil. This is oil being turned into products that are part of peoples’ daily lives.

Of renovation

With an eye out to the future, Petrobras is going beyond oil and is leading a true “green revolution” with the usage of biodiesel and ethanol. Focusing on leading this market in Brazil, the Company is endeavoring to produce biodiesel on the commercial scale, with an initial investment of R$227 million. The first industrial plants are being built in Candeias (BA), Montes Claros (MG), and Quixadá (CE), and will produce 171 million liters of biodiesel per year.

Farmer families will be given priority in the supply of raw materials to Petrobras. It is estimated that nearly 70,000 families will have guaranteed income by providing inputs to the three biodiesel plants.

This is but the beginning of a new era full of discoveries, challenges, energy, efficiency and renewal. Please be welcome to it!