Pre-Salt Oil, PPSA Collects R$ 1.22 Billion and Fills Public Coffers; Oil and Natural Gas Production Reached Highest Level in Historical Series in November!

PPSA Predicts Production of 8.2 Billion Barrels of Oil by 2031 and Expects to Raise R$ 696 Billion from the Commercialization of This Volume

The company linked to the Ministry of Mines and Energy (MME) Pré-Sal Petróleo S.A (PPSA) ended the year 2021 by filling the Union’s coffers. R$ 1.22 billion was raised from oil and gas production, which represents a 74% increase compared to the 2020 result, when R$ 704 million was raised.

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According to the state-owned company, the result is a record in the historical series, surpassing the previous record of R$ 1.1 billion, recorded in 2018. The funds refer to the commercialization of the Union’s share of oil and natural gas in production sharing contracts.

In 2021, Pré-Sal Petróleo sold 3.5 million barrels of oil from the Union in the Entorno de Sapinhoá Field and the Mero Development Area (Libra). A total of 57.6 million cubic meters of natural gas from the Union’s Búzios, Entorno de Sapinhoá, Tartaruga Verde Sudoeste, and Tupi fields were also sold.

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The company’s CEO, Eduardo Gerk, stated that the result represents the beginning of a growth curve in expected revenue for the Union in the coming years. “Contracts are entering production, and this excellent result confirms the growth trend that we will witness in the coming years.”

Since Its Creation in 2013, Pré-Sal Petróleo Has Raised R$ 3.9 Billion for Public Funds

At the end of last year, PPSA released the study Estimates of Results in Production Sharing Contracts, which predicts the production of 8.2 billion barrels of oil in a production sharing regime by 2031, with 1.5 billion barrels concerning the Union’s share. “We expect to raise US$ 116 billion from the commercialization of these volumes,” Gerk added.

Since its founding in 2013, PPSA has raised R$ 3.9 billion for the Union, of which R$ 2.6 billion came from oil and gas commercialization activities and R$ 1.3 billion from equalization of expenses and volumes, conducted by the company in areas where the Union has interests in production individualization agreements (AIPs).

Oil and Natural Gas Production Reached Record High in November

Oil and natural gas production in a production sharing regime reached record levels in November 2021, showing the highest levels since 2017: an average daily production of 447 thousand barrels of oil and 1.3 million cubic meters of natural gas. The information comes from the Monthly Bulletin of Production Sharing, released last Tuesday (11) by Pré-Sal Petróleo (PPSA), which has recorded a substantial increase in produced volumes since September due to the start of production from the excess volumes from the Cessão Onerosa of Búzios in a production sharing regime.

In November, the 26% increase in oil and 200% in gas, compared to the previous month, is specifically linked to another activity in Búzios: the resumption of operations at the P-76 platform, which underwent scheduled maintenance in October.

Also in November, three contracts were in production. Of the total of 447 thousand bpd, 435 thousand bpd came from Búzios, followed by 7 thousand bpd from Entorno de Sapinhoá and 5 thousand bpd from Tartaruga Verde Sudoeste. The Mero Development Area (Libra) did not have production that month due to the conclusion of the first Early Production System 1 (SPA-1) and the relocation of the FPSO Pioneiro de Libra to begin SPA-2.

Since 2017, Cumulative Production Under the Production Sharing Regime Is 95.6 Million Barrels of Oil and 343 Million m³ of Natural Gas

The average daily excess oil production for the Union in November was 10.4 thousand bpd, with 6.1 thousand bpd from the Búzios Field and 4.3 thousand bpd from Entorno de Sapinhoá. In Tartaruga Verde Sudoeste, the Union’s excess oil was allocated to pay off debts with the operator due to the redefinition of participations carried out in the Production Individualization Agreement (AIP).

Of the daily natural gas production for commercialization during the period, out of a total of 1,309 thousand m³/day, 1,115 thousand m³/day came from Búzios, 158 thousand m³/day from Entorno de Sapinhoá, and 36 thousand m³/day from Tartaruga Verde Sudoeste. The average daily total excess natural gas was 120 thousand m³/day (16 thousand m³/day from Búzios and 104 thousand m³/day from Entorno de Sapinhoá). Compared to the previous month, the average daily total excess natural gas from the Union represented a 10% reduction due to the scheduled shutdown of the FPSO Cidade de Ilhabela, in Sapinhoá. In Tartaruga Verde Sudoeste, the Union’s gas excess was also allocated to pay off debts with the operator arising from the redefinition of the AIP.

Since 2017, cumulative production under the production sharing regime is 95.6 million barrels of oil and 343 million m³ of natural gas. Of the total, 11.2 million barrels of oil and 98.4 million m³ of natural gas belong to the Union’s share.