VIII Seminário Internacional Britcham de Energia sobre ... · VIII Seminário Internacional Britcham de Energia sobre Desafios do Pré -Sal C Gaffney, Cline & Associates 26 de Novembro,

VIII Seminário Internacional Britcham de Energia sobre

Desafios do Pré-Sal

Gaffney, Cline & AssociatesC

Desafios do Pré-Sal

26 de Novembro, 2008

Rio de Janeiro

"Aspectos Regulatórios:Qual a Estrutura Apropriada para o

Pré-Sal?"


Pré-Sal?"

Objetivo: Compreender a estrutura regulatória proposta para a área do pré-sal e seu impacto para investidores potenciais

Especificamente: Os aspectos da eqüidade entre os participantes de um campo

Polo do Pré-Sal, Bacia de SantosFonte: Petrobras


9 Grandes descobertas …outras virão?


Carioca

Bem-te-vi

Pré-Sal Play FairwayFonte: Petrobras


Potential Contractual Outcomes..

• Pre-Sal fairway remains under Concession Agreement terms, but – SPT increased dramatically

• Unlicensed Pre-Sal fairway is subject to a Production Sharing Agreement


Production Sharing Agreement– with/without “Petrosal” carry

• Unlicensed Pre-Sal fairway subject to Service Contract – with/without “Petrosal”

• Some form of hybrid?

Whatever the Contractual Outcome..

• Unitisation & Redetermination will become an issue…no precedents at this scale in Brazil

• Appraisal & development drilling will


• Appraisal & development drilling will continue on existing discoveries

• Exploration will continue on licensed acreage

• Unless Petroleum Law stays unchanged, development delays will occur

Bem-te-vi

*

*

Carioca, Guará

Parati

Tupi, lara

Pre-Salt Licence Groups & Equity Interests


* Caramba

Jupiter

* Pâo de Açucar

Why Unitise?

To ensure that the State's resources are developed in an optimum and efficient manner

– To maximise recovery from the field as a


– To maximise recovery from the field as a whole

– To share and make best use of all relevant technical information

– To reduce development costs and improve the efficiency of the project

What is Unitisation?

Licence A Licence B


Unitisation is the process by which development of a field that crosses one or more Licence (or International) boundary or

boundaries can take place as a single "unit"

Overriding Principles

• Unitisation• Permits the joint development of a

hydrocarbon resource that straddles territory controlled by different organisations


organisations

• Required where there is unequivocal evidence of cross-boundary reservoir connectivity

• Prevents one licensee from taking the hydrocarbons that belong to another

Continued Pre-Sal Licensing

• Pre-Unit Agreements may be useful

• Unitisation & Unit Operating Agreements (UUOAs) will be required

• Issues include:-


• Issues include:-– Unit Area & Unit Reservoir

– Unit Operator(s)

– Basis for Unitisation

– Need, timing & number of Redetermination(s)

– Past Costs & Future Revenues

When to Unitise, when/if to Redetermine?

Discovery

Appraisal

Development Plan

Pre-Unitisation Agreement

Unitisation and Unit


Field development

Field abandonment

Development Plan

Production

Unitisation and UnitOperating Agreement

Redetermination

Unitisation – e.g. CAs and/or PSCs

Licence A Licence B

Company A

WI%40

UI%34.0


Unit Area

15%

85%

Company ACompany BCompany C

WI%503020

UI%7.54.53.0

Company ACompany D

4060

34.051.0

WI% = Working Interest in LicenceUI% = Unit Interest in the Field

Redetermination – e.g. PSC & CA

Licence APSC

Licence BCA

Company A

WI%40

UI%32.0


Unit Area

20%

80%

Company ACompany BCompany C

WI%503020

UI%10.06.04.0

Company ACompany D

4060

32.048.0

WI% = Working Interest in LicenceUI% = Unit Interest in the Field

What is a Redetermination?

A new determination of Tract Participations

– Updated estimate based on new data

– Almost always retroactive


– Almost always retroactive

– Often highly contentious

– Adjustments may not be "fair and equitable"

– May be very expensive

Redetermination

• Timing– End of Development drilling?

– 9 months after production start-up?

– Two or more, but not too late..

• Effect


• Effect– ‘Immediate’ re-imbursement of overpaid costs (Capex

only) from under-paying Tract Participants

– Deferred production of under-lifted petroleum

• Changes in commodity price & CAPEX can cancel-out Tract changes

Unitisations that include different contractual bases

• International Borders– Border agreed and field unitised to reflect different

contractual and sovereign rights

– Statfjord field example

– Frigg field standard reference


– Frigg field standard reference

• Joint Development Areas– Border or borders not agreed and JDA formed to defer

the problem

– Where CA & PSC, latter or hybrid has prevailed

– Examples include Malaysia-Thailand, Australia-Timor Leste

Unitisation of a Pre-Sal Giant

• Development drilling in CA complete, accrued costs ~ US$700MM (10 wells)

• TLD underway, phased development planned, FPSO under construction

• Unitisation on basis of in-place, moveable,


• Unitisation on basis of in-place, moveable, reserves or a hybrid

• “New Tract Participants” have had no influence, but must: – contribute their proportion of Tract’s past costs immediately

– or reach an alternative commercial arrangement….

– after proving continuity!

Redetermination of a Pre-Sal Giant

• Production from TLD and 1st Phase, after say 12-18 months

• Redetermination on basis of in-place, moveable, reserves or a hybrid


reserves or a hybrid

• If PSC Tract increases:

– ‘Immediate’ payment of past costs, that will be recouped

from in-kind lifting of ‘cost oil’

– Plus an additional production quota to make up, over an

agreed period

• If CA Tract increases – same, but no ‘cost oil’

Finalmente, lembrem-se…

Unitização e redeterminação soma zero!Não faz o bolo crescer..

Muito obrigado pela sua atenção!


Documents

VIII Seminário Internacional Britcham de Energia sobre ... · VIII Seminário Internacional Britcham de Energia sobre Desafios do Pré -Sal C Gaffney, Cline & Associates 26 de Novembro,