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Investor Presentaiton

40 40 A YEARBOOK OF THE OIL AND NATURAL GAS INDUSTRY IN ESPÍRITO SANTO 2022 CHAPTER 2 EXPLORATION AND PRODUCTION OF OIL AND NATURAL GAS IN ESPÍRITO SANTO 41 For 2023, a small recovery in off- shore production is expected due to overcoming operational prob- lems that affected the produc- tion performance of the previous year, such as the leak in the hull of FPSO Cidade de Anchieta and the decommissioning of FPSO Capixaba. For 2024, a drop in off- shore production is projected due to the continuation of the natural decline in production. A significant change is expected in 2024 and 2025, when Petro- bras intends to put into operation a new platform in Parque das Ba- leias (FPSO Maria Quitéria) and PetroRio (PRio) plans to start the extraction in the Wahoo field. The Petrobras project intends to in- crease the oil and gas recovery factor through the optimization of the current drainage network, with the interconnection of a new FPSO. The intention is that the new platform will be operating in the last quarter of 2024. PRIO intends to drill 4 producing wells and 2 injectors, with 1st oil ex- pected for the 1st half of 2024. These projects are responsible for the reversal curve of the projected falls for the production of oil and natural gas in Espírito Santo. Chart 21 - Projection of offshore oil production in Espírito Santo (thousand barrels) 133,869 118,721 101,517 87,144 87,805 82,692 73,891 69,793 47,679 52,719 50,997 2017 2018 2019 2020 2021 2022 2023 2024 2025 Production Elaboration: Industry Observatory/Findes and LCA. 2026 2027 (d) (d) (d) (d) (d) Projected Chart 22 Projection of offshore natural gas production in Espírito Santo (in millions of m³) 3,959 3,432 2,640 2,277 2,411 1,971 2,121 1,759 1,224 1,367 1,292 2.6.2. Projection of onshore production in Espírito Santo Onshore production accounts for a minority share of the volume of oil and natural gas produced. The evolution of production on land does not significantly af- fect the total produced by the state. However, this activity is important in the regional socio- economic development of pro- ducing municipalities, especially in the generation of employment and income. It is expected that between 2023 and 2027 onshore oil production will have an aver- age annual drop of 2.9%, reach- ing in 2027 a production of 2.2 million barrels. For natural gas, an average annual drop of 2.2% is projected, between 2023 and 2027, reaching a production of 18.4 million m³, in 2027. Charts 23 and 24 show the re- cent evolution and projection of onshore production until 2027. The downward trend in the pro- duction is due to the fact that all the main fields are mature and with a declining trend in produc- tion. In addition, Petrobras has no interest in the development of onshore assets, which reduc- es the absorption capacity of new projects in the region. The company owns the fields with the highest production of terres- trial oil and natural gas in Espíri- to Santo. Despite this result, less sharp declines are expected until 2027 due to the sale of Petrobras assets to other operators. The prospect is that these new en- trants will increase investment in revitalizing and extending the useful life of these areas. In ad- dition, the increase in the num- ber of hydrocarbon and com- merciality declarations, aligned with the sale of land areas in the Permanent Offer, signals a pos- sible increase in the number of new onshore projects. It should be noted that as the values of production on land are lower, any new projects or un- scheduled shutdowns can cause large deviations from the pro- jected volumes. 4.1% is the expected average annual drop in onshore oil production between 2022 and 2027, reaching 2.2 million barrels 5.4% is the expected average annual drop in onshore natural gas production between 2022 and 2027, reaching 17.0 million m3 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 (d) (p) (d) (d) (p) | Production Projected Elaboration: Industry Observatory/Findes and LCA.
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