Investor Presentaiton
CHAPTER 2 EXPLORATION AND PRODUCTION OF OIL AND NATURAL GAS IN ESPÍRITO SANTO
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position among the largest producers of both in-
puts, reaching 16.3% of national oil production and
14.9% of national natural gas production.
After this period, with the growth of pre-salt pro-
duction on the coast of São Paulo and some de-
cline in the capixaba production, the state became
the third largest national oil producer, very rele-
vant position and far ahead of the fourth place. In
2021, for example, despite this decline, the state
delivered a very significant contribution to national
production, of 7.3% for oil and 4.1% for natural gas.
Part of the explanations for the drop in oil and gas
production in Espírito Santo can be justified by a
hiatus of new discoveries and the implementation
of large production projects.
In the period 2011 to 2021, even in a scenario of
production reduction, we had two great results.
The giant Jubarte field continued with increasing
production, which had already happened in the
previous decade. For the onshore environment,
the main highlight was the growth of production
from the Cancã field, in the municipality of Lin-
hares, northern region of the state.
However, the expectation is that production in the
state will grow again as early as 2023, both on land
and at sea. The basis for this statement lies in
promising and recent events in the sector, such as
the implementation of at least one large maritime
project and better operational performance, such
as mature areas such as Parque das Conchas, op-
erated by Shell, and several land fields. In summa-
ry, the state has attracted the attention of new and
traditional oil companies that are projecting their
operations in Espírito Santo, including exploratory
activities (acquisition of seismic data and drilling
of pioneer wells) aiming for new discoveries, such
as CNOOC, ExxonMobil and Repsol, in addition to
Petrobras itself. These new proj-
ects have not yet started the pro-
duction of inputs and therefore
do not yet appear as important
vectors of oil and natural gas pro-
duction. In addition to the imple-
mentation of the Integrated Proj-
ect of Parque das Baleias (100%
Petrobras), offshore production
begins to gain new momentum
with the arrival of operators such
as PRIO (Itaipu and Wahoo dis-
coveries), BW Energy (Golfinho
Center) and 3R Petroleum (Peroá
Center). In addition to these, the
consolidation of Seacrest's proj-
ects at Cricaré and Norte Capix-
aba Centers is expected, the lat-
ter being acquired by Petrobras.
Also, from the onshore explo-
ration and production assets of
Imetame Energia, Energy Paranã,
BGM, ES Óleo & Gás and Capixa-
ba Energia, among other compa-
nies with Espírito Santo DNA and
from other regions of the coun-
try, such as Origem, for example.
The expectation is that with a
greater diversity of players and
environments, the production of
oil and gas in the state rises in a
sustainable way, keeping Espírito
Santo in the group of the 3 largest
producing states in Brazil. With this,
there will be a greater generation of
income and employment for capix-
abas, contributing to a new phase
of development for Espírito Santo.
2.6. Production projection
For the projection of oil and nat- production in each producing well
in Espírito Santo.
ural gas production in Espírito
Santo, the use of accounting rules
to capture the production trend It is expected that between 2023
focused on the regional supply of and 2027 total oil production will
the input was adopted as a meth- have an average annual increase
odology. The values were project- of 10.3%, reaching in 2027 a pro-
ed until the year 2027, considering duction of 90.0 million barrels of
a detailed analysis of the profile of oil. For natural gas, an average an-
the supply of hydrocarbons, relat- nual increase of 11.9% is projected
ed to the exploration and produc- between 2023 and 2027, reaching
tion phases of each field, operator a production of 2.43 billion m³ in
and platform. The calculations 2027. The reversal of the downward
were performed using algebra- trend in production is expected in
ic formulas that reproduced the the transition from 2024 to 2025,
means and historical patterns of both for oil and natural gas.
2.6.1. Projection of offshore
production in Espírito Santo
Offshore production accounts for
a majority share of the total vol-
ume produced of oil and natural
gas in Espírito Santo. The evolu-
tion of extraction at sea is respon-
sible for most of the state's pro-
duction and, for the coming years,
it is expected that this configura-
tion will not be changed. Between
2023 and 2027, offshore oil pro-
duction is expected to record an
average annual increase of 10.7%,
reaching an output of 87.8 million
barrels in 2027. For natural gas,
an average annual increase of
12.0% is projected, between 2023
and 2027, reaching a production
of 2.41 billion m3, in 2027.
Charts 21 and 22 show the re-
cent evolution and projection of
production at sea until 2027. The
decrease in the production of
inputs between 2017 and 2022
can be explained by the natural
decay of the producing fields at
sea, with emphasis on the sharp
falls in Parque das Baleias and
Parque das Conchas. In addition,
during the period there was a low
number of new offshore projects
in the state and the consequent
concentration of future produc-
tion in projects that were devel-
oped in the past.
10.7%
is the expected average
annual increase in offshore
oil production between
2023 and 2027, reaching
87.8 million barrels
12.0%
is the expected average
annual increase in offshore
natural gas production
between 2023 and 2027,
reaching 2.43 billion m3View entire presentation