Dear Mr/Mrs ..,
Petrobras' Proved Reserves in 2008
(Rio de Janeiro,
January 15, 2009). - PETR�LEO BRASILEIRO S/A - PETROBRAS,
[Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA],
a Brazilian international energy company, announces its proved reserves of oil,
condensate and natural gas in Brazil and abroad in 2008, according to the
Society of Petroleum Engineers - SPE and Securities and Exchange
Commission - SEC criteria.
The
pre-salt discoveries in the Santos
Basin are still under
evaluation and are not being considered for the calculation of the Proved
Reserves according to both criteria.
Proved
Reserves in Brazil
According
to ANP/SPE criteria:
On
December 31st, 2008, the Proved Reserves of oil, condensate and natural gas in
the fields under concession of Petrobras in Brazil amounted to 14,093 billion
barrels of oil equivalent (boe), representing an increase of 1.2% in relation
to 2007.
Proved Reserves - SPE
|
Volume
|
%
|
Oil + Condensate (billion
bbl)
|
11.969
|
85
|
Natural
Gas (billion m3)
|
337.624
|
15
|
Oil Equivalent (billion boe)
|
14.093
|
100
|
During
2008, 920 billion boe were incorporated into Proved Reserves, with production
over the same period amounting to 747 million boe, as shown in the following
table:
Proved Reserves Breakdown -
SPE Criteria
|
Volume (billion boe)
|
A) Proved
Reserves in December 2007
|
13.920
|
B) Incorporated
as Proved Reserves in 2008
|
0.920
|
C) Accumulated Production in 2008
|
(0.747)
|
D) Annual Change
(B + C)
|
0.173
|
E) Proved Reserves in
December 2008 (A + D)
|
14.093
|
For each barrel
of oil equivalent extracted in 2008, 1.23 boe were incorporated into Proved
Reserves, resulting in a Reserve Replacement Index (RRI) of 123%. The
Reserve/Production (R/P) ratio in Brazil was 18.9 years.
The main appropriations in 2008 included:
� Discoveries in exploratory blocks - Camarupim Norte
and Jacutinga, by the Esp�rito Santo Exploration & Production Business Unit
(UN-ES);
� Discoveries in exploratory blocks incorporated to
existing production fields - Sa�ra, C�rrego Cedro
Norte, Guriri, and Rio Mariricu, by the Esp�rito Santo Exploration &
Production Business Unit (UN-ES), and S�o Miguel dos Campos, by the
Sergipe and Alagoas Exploration & Production Business Unit (UN-SEAL);
� Appropriations in existing fields as a result of the
higher recovery factor- Marlim Sul, Barracuda, and Roncador, by the Rio de
Janeiro Exploration & Production Business Unit (UN-RIO); Marlim, Badejo,
and Espadarte, by the Campos Basin Exploration & Production Business
Unit (UN-BC); Baleia Franca, Cachalote, and Jubarte, by the Esp�rito Santo
Exploration & Production Business Unit (UN-ES); and Urugu�, by the Santos
Basin Exploration & Production Business Unit (UN-BS).
� The pre-salt discoveries in Esp�rito Santo added 128
million boe to the reserves.
According
to the SEC criteria:
According to the SEC criteria, 1.401
billion boe were incorporated in 2008 reserves, equivalent to 1.8 times the
year production of 747 million boe. Regarding the 2007 reserves, the Brent price
of the last day of 2008 is used to revaluate the reserves. The oil price
dropped 60% during the year, decreasing from $96.02/bbl in the end of 2007 to
$36.55/bbl in the end of 2008. Consequently, the proved reserves suffered a
loss of 1.198 billion boe. The incorporation that was made in the period (1.401
billion boe) represents 72% of the total reductions in the year (1.945 billion
boe).
As a result of
this, considering the incorporation, the year's production, and the loss with
the price reductions, as per the SEC's criteria, the proved reserves on
December 31 2008 were 10.274 billion boe.
Proved Reserves - SEC
Criteria
|
Volume
|
%
|
Oil and Condensate (billion
bbl)
|
8.716
|
85
|
Natural Gas (billion m3)
|
247.643
|
15
|
Oil Equivalent (billion
boe)
|
10.274
|
100
|
On December 31st,
2008, Proved Reserves in Brazil
were 5% lower than 2007 levels and the RRI was 27%. The Reserve/Production
(R/P) ratio was 13.8 years.
The pre-salt discoveries in Esp�rito Santo
also contributed to the Proved reserves according to SEC criteria.
Proved Reserves
Breakdown - SEC Criteria
|
Volume (billion boe)
|
A) Proved
Reserves in December 2007
|
10.818
|
B) Acumulated Production 2008
|
(0.747)
|
C) Loss due to
price reduction in 2008
|
(1.198)
|
D) Incorporated
as Proved Reserves in 2008
|
1.401
|
E) Annual Change
(B+C+D)
|
(0.544)
|
F) Proved
Reserves in December 2008 (A + E)
|
10.274
|
The main
differences between the SEC and the ANP/SPE criteria, are due to the different
assumptions used (oil price assumption, concession term and gas reserves with
contracts not declared) and the non-booking of projects in the initial stages
of production development in the company accounts.
International
Proved Reserves
According to the
SPE criteria:
On December 31st,
2008 Proved Reserves of oil, condensate and natural gas, abroad were 0.992
billion boe, representing a decrease of 9.0% in relation to 2007.
Proved Reserves - SPE Criteria
|
Volume
|
%
|
Oil and Condensate (billion
bbl)
|
0.497
|
50
|
Natural
Gas (billion m3)
|
83.943
|
50
|
Oil Equivalent (billion boe)
|
0.992
|
100
|
During
2008, the increase of proved reserves can be attributed to improving recovery
factors in Argentina and Peru oil fields and the addition of Cascade field
reserves in the United States. However this increase was offset by production
activity, a decrease of assets in Ecuador
and the revaluation of Nigeria
reserves, resulting in a 98 million boe reduction of 2008 proven reserves, as
shown below:
Proved Reserves - SPE Criteria
|
Volume (billion boe)
|
A) Proved
Reserves in December 2007
|
1.090
|
B) Incorporated
as Proved Reserves in 2008
|
(0.016)
|
C) Accumulated Production 2008
|
(0.082)
|
D) Annual Change
(B + C)
|
(0.098)
|
E) Proved
Reserves in December 2008 (A + D)
|
0.992
|
According to SPE
criteria, international Reserve/Production (R/P) ratio was 12.1 years.
According
to SEC criteria:
On December 31st,
2008, the oil, condensate and natural gas proved reserves were 917 million boe.
This volume represents an increase of approximately 3.5% compared to the
preceding year (886 million boe).
Proved Reserves - SEC Criteria
|
Volume
|
%
|
Oil and Condensate (billion
bbl)
|
0.438
|
48
|
Natural
Gas (billion m3)
|
81.242
|
52
|
Oil Equivalent (billion boe)
|
0.917
|
100
|
During
2008, the addition of proved reserves, mainly in Bolivia,
Argentina, Nigeria and Peru,
offset the decrease of proved reserves in Ecuador and general production
activity, as shown below:
Proved Reserves
Breakdown - SEC Criteria
|
Volume (billion
boe)
|
A) Proved
Reserves in December 2007
|
0.886
|
B) Incorporated
as Proved Reserves in 2008
|
0.112
|
C) Accumulated
Production in 2008
|
0.081
|
D) Annual Change
(B + C)
|
0.031
|
E) Proved
Reserves in December 2008 (A + D)
|
0.917
|
Using the same
criteria, the Reserve/Production (R/P) ratio is 11.3 years.
Some of the differences between the
SPE and SEC reserve numbers include:
- The Cascade field, offshore the Gulf
of Mexico, was included only in SPE reserve figures and;
- Not all of the volumes in Nigeria
can be declared as reserves based on SEC criteria.
Considering the possibility of
changes in Bolivian legislation, the proved reserves in this country could be
reduced in its totality, which represents, approximately, 2% of total Petrobras
proved reserves.
Proved
Reserves of Petrobras in 2008 (Brazil
and International)
According
to ANP/SPE criteria:
On
December 31st, 2008 Petrobras' Proved Reserves of oil, condensate and natural
gas amounted to 15.085 billion de boe, a 0.5% increase compared to last year,
distributed as shown:
Proved Reserves - SPE
Criteria
|
Volume (billion
boe)
|
%
|
Brazil
|
14.093
|
93
|
International
|
0.992
|
7
|
Total
|
15.085
|
100
|
According to the
SPE criteria, 904 million boe were incorporated into Proved Reserves in 2008
and 829 million boe were produced, resulting in an increase of 75 million boe
in relation to 2007 proved reserves (15.010 billion boe). Consequently, for
each barrel of oil equivalent produced during 2008, 1.09 barrels were
incorporated into Proved Reserves, resulting in a Reserve Replacement Index -
RRI of 109%. The Reserves/Production ratio (R/P) was 18.2 years.
Proved Reserves
Breakdown - SPE Criteria
|
Volume (billion
boe)
|
A) Proved
Reserves in December 2007
|
15.010
|
B) Incorporated
as Proved Reserves in 2008
|
0.904
|
C) Accumulated
Production in 2008
|
(0.829)
|
D) Annual Change
(B - C)
|
0.075
|
E) Proved
Reserves in December 2008 (A + D)
|
15.085
|
According
to the SEC criteria:
Proved reserves
on December 31st, 2008 amounted to 11.191 boe, distributed as follows:
Proved Reserves - SEC
Criteria
|
Volume (billion
boe)
|
%
|
Brazil
|
10.274
|
92
|
International
|
0.917
|
8
|
Total
|
11.191
|
100
|
During 2008,
1.401 billion boe in additions to domestic reserves (equivalent to 1.8 times
domestic production) were offset by a loss of 1.198 billion boe due to declines
in the price of Brent, with oil ultimately falling to US$ 36.55/bbl on December
31, 2008. Proved Reserves thus declined 4.4% vs. 2007. This corresponds to a
Reserve Replacement Index - RRI of 38% and the Reserves/Production ratio (R/P)
was 13.5 years.
Proved Reserves
Breakdown - SEC Criteria
|
Volume (billion
boe)
|
A) Proved
Reserves in December 2007
|
11.704
|
B) Accumulated
Production in 2008
|
(0.828)
|
C) Loss due to
price reduction in 2008
|
(1.198)
|
D) Incorporated
as Proved Reserves in 2008
|
1.513
|
E) Annual Change
(B+C+D)
|
(0.513)
|
F) Proved
Reserves in December 2008 (A + D)
|
11.704
|
Petrobras
clarifies that the hydrocarbon reserve properties belong to their respective
National States.
Sincerely,
Investor Relations Department