Spotlight: The potential of Brazil’s open acreage oil and gas program

Brazil’s oil and gas regulator ANP is engaged in a series of geological and economic studies on the areas that could be offered in the next bidding rounds. 

Pedro Zalán, geologist and CEO of ZAG Consultoria, told BNamericas that there is good commercial potential in new frontier assets analyzed by the regulatory agency on land or off the country's coast. 

Pressured by the prospect of national production peaking in the next decade, Brazil is trying to attract industry interest again after years of unsuccessful pre-salt campaigns.

This month, national energy policy council CNPE approved the inclusion of seven new exploration blocks in the permanent production sharing offer, based on studies carried out by the ANP. 

BNamericas had access to one of them, focused on the Opala, Calcedônia and Quartzo blocks in the Santos basin. 

Each of these assets has two prospects, for which the watchdog has estimated reserves for a hypothetical project, for modeling purposes. 

Opala and Opala Leste, located in the Opala block, have an estimated 203Mb (million barrels) and 480Mb of oil, respectively, with chances of success (Cos) rated at 100% and 20.6%. 

Opala Oeste and Prospecto 1, in Calcedonia, have an estimated 204Mb and 237Mb, respectively, with Cos put at 20.6% and 24%.

Prospecto 2 Oeste and Prospecto 2 Leste, in Quartzo, have estimated reserves of 588Mb and 362Mb, with Cos of 10.8% and 32%. 

In terms of natural gas, the volumes from the Opal block would be reinjected. Prospecto 1 (Calcedonia) has an estimated 2.3Bm³ (billion cubic meters), Prospecto 2 Oeste (Quartzo) 92Bm³ and Prospecto 2 Leste (Quartzo) 58Bm³. 

Developing these projects would require a total of 100 producing wells and 120km of gas pipelines at a total cost of US$63bn, according to the ANP.

Zalán, who considers the three blocks to be “very good”, believes the volumes of reserves estimated by the watchdog are reasonable. 

He added that there are two additional interesting blocks to the west: Safira Leste and Oeste, which have also been approved by the CNPE. Like Opala, Calcedônia and Quartzo, they are surrounded by discoveries of giant pre-salt fields. 

“They don't have pre-salt structures as large as those in the Mero, Búzios, Sapinhoá and Tupi fields, but they're sufficient to provide economic volumes,” he told BNamericas, noting that they are surrounded by existing infrastructure for transporting production. 

The other blocks on offer in the production sharing system are: Cerussita, Aragonita, Rodocrosita, Malaquita, Citrino, Larimar, Onyx, Itaimbezinho, Jaspe, Amazonita, Ágata, Mogno, Ametista, Esmeralda, Jade, Turmalina, Rubi, Granada and Cruzeiro do Sul. 

A recent ANP study details the potential of some of these assets. 

Citrino has unrisked (i.e., not tested by drilling) oil volumes estimated at 3.54Bb. Meanwhile, Onyx and Larimar have 1.79Bboe (billion barrels of oil equivalent) and 1.49Bboe, respectively, with condensate gas being their main fluid. 

Rubi and Granada have an oil potential estimated at a total average risked volume (considering risks and uncertainties) of 2.1Bboe. 

Zalán said that Jaspe is one of the production sharing blocks with the greatest potential. 

“It's so good that Petrobras has already exercised the right to operate it. Whoever partners with Petrobras will be making a good deal,” he said. 

Another highlight is Ametista, which, according to the geologist, has “a fantastic structure, with the development of carbonate reservoirs with great potential to contain oil.” 

Concessions 

With regard to the open acreage concession program, ANP’s geological studies are focusing on the Equatorial Margin (the Ceará, Barreirinhas, Pará-Maranhão, Potiguar and Foz do Amazonas basins), the Pelotas basin, the south of the Santos basin, the north of the Campos basin and the offshore portions of the Espírito Santo (southern region) and Sergipe-Alagoas basins. 

The highlight is the Foz do Amazonas basin, which federal energy research company EPE says could have recoverable volumes of as much as 10Bboe.

“This potential not only guarantees energy security, but also makes it possible to raise revenue that can enable investments in basic sanitation, health and education that are essential for populations located in highly vulnerable regions,” EPE said in a press release. 

The company’s statement was made amid the difficulties faced by national oil company Petrobras to obtain a license to drill in the area. 

Zalán believes that the Foz do Amazonas, Pará-Maranhão and Barreirinhas basins are ready to repeat the success of Guyana and Suriname to the west, and Ghana and the Ivory Coast in Africa to the east. 

“Pelotas is also very interesting. Just look at the success of the last round, in which dozens of blocks were awarded. It still has very interesting blocks in its central part that are being studied by the ANP,” he said.  

On land, the ANP is also analyzing the incorporation of onshore frontier basins and re-evaluating mature onshore basins. These include the Recôncavo, Potiguar, Espírito Santo, Sergipe-Alagoas, Paraná, Parecis and Parnaíba basins. 

In Zalán's view, the most promising for major discoveries are the Paraná and Parnaíba basins. 

“Local companies specializing in onshore exploration, such as Eneva and Petrorecôncavo, might be interested in new acquisitions in these basins,” he said.