Proved Reserves of Petrobras 2018

Rio de Janeiro, January 30, 2019 – Petróleo Brasileiro S.A. – Petrobras discloses the volume of its proved petroleum reserves (oil, condensate and natural gas), estimated as of the end of 2018, according to ANP/SPE (National Agency of Petroleum, Natural Gas and Biofuels/Society of Petroleum Engineers) and SEC (US Securities and Exchange Commission) criteria.

Proved Reserves according to ANP/SPE criteria

According to ANP/SPE criteria, as of December 31, 2018, Petrobras’ proved oil, condensate and natural gas reserves reached 11.957 billion of barrels of oil equivalent (boe), as shown in Table 1. At the end of 2017, these volumes amounted to 12.415 billion boe.

Table 1 – Proved Reserves Volumes in 2018 (ANP/SPE criteria)

Fluid

Proved Reserves ANP/SPE

Oil and Condensate (billion bbl)

10.173

Natural Gas (billion m3)

284.085

Oil Equivalent (billion boe)

11.957

Table 2 and Graph 1 below detail changes in proved reserves during 2018, according to ANP/SPE criteria.

Table 2 – Changes in Proved Reserves during 2018 (ANP/SPE criteria)

Changes in the net Volume

Petrobras

(billion boe)

 a)      Proved Reserves December / 2017

12.415

b)     Appropriations in 2018

0.826

  c)     Purchases and sales in 2018

-0.421

d)     Annual Production in 2018[1]

-0.863

e)     Annual changes (b+c+d)

-0.458

f)      Proved Reserves December / 2018 (a+e)

11.957

 

[1] Volumes above include synthetic oil and gas production and does not consider the production of Extended Well Tests (EWT) in exploratory blocks in Brazil, since they refer to exploratory areas, without declaration of commerciality, consequently with no associated reserves. Production does not include volumes of injected gas either. In addition, this volume does not include Bolivia’s production, since Article 357 of the Bolivian Constitution (enacted on 07/02/2009) prohibits concessionaires from disclosing reserves.

 

Graph 1 – Changes in  Proved Reserves during 2018 (ANP/SPE criteria)

Petrobras succeded to replace 96% of the produced volume, disregarding the effects of the divestments carried out in 2018, mainly due to drilling of new wells, positive responses to water injection and to the good performance of reservoirs in the pre-salt of Santos and Campos basins. The ratio between proved reserves and produced volume is 13.9 years.

The divestment operations provided the anticipated monetization of 0.421 billion boe related to: transfer of 35% of Lapa field rights and 22.5% of Berbigão, Sururu and Oeste de Atapu fields rights to Total; transfer of 25% of Roncador field rights, materializing the strategic partnership with Equinor; and establishment of a Joint Venture of Petrobras America Inc. with Murphy Exploration & Production Co.
Proved Reserves according to SEC criteria
According to SEC criteria, as of December 31, 2018, Petrobras’ proved oil, condensate and natural gas reserves reached 9.606 billion of barrels of oil equivalent (boe), as shown in Table 3. At the end of 2017, these volumes amounted to 9.752 billion boe.

Table 3 – Proved Reserves Volumes  in 2018 (SEC criteria)

Fluid

Proved Reserves SEC

Oil and Condensate (billion bbl)

8.261

Natural Gas (billion m3)

214.286

Oil Equivalent (billion boe)

9.606

 

Changes in proved reserves during 2018, according to SEC criteria, are shown in Table 4 and Graph 2 below:

 

Table 4 – Changes in Proved Reserves during 2018 (SEC criteria)

Changes in the net Volume

Petrobras

(billion boe)

  a)     Proved Reserves December / 2017

9.752

b)     Appropriations in 2018

1.076

 c)      Purchases and sales in 2018

-0.359

d)     Annual Production in 2018 [2]

-0.863

e)     Annual changes (b+c+d)

-0.146

f)      Proved Reserves December / 2018 (a+e)

9.606

[2] Volume above include synthetic oil and gas production and does not consider the production of Extended Well Tests (EWT) in exploratory blocks in Brazil, since they refer to exploratory areas, without declaration of commerciality,  consequently  with no associated reserves. Production does not consider volumes of injected gas either. In addition, this volume does not include Bolivia’s production, since Article 357 of the Bolivian Constitution (enacted on 07/02/2009) prohibits concessionaires from disclosing reserves.

Graph 2 – Changes in Proved Reserves during 2018 (SEC criteria)

 

According to SEC criteria, Petrobras succeded to replace 125% of the produced volume, disregarding the effects of divestments in 2018. The ratio between proved reserves and produced volume is 11.1 years.

Historically, Petrobras submits at least 90% of its proved reserves to certification according to SEC criteria. Currently the certifying company is D&M (DeGolyer and MacNaughton).

 

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