Pré-Sal Petróleo (PPSA) reached ten years of operation last Sunday (November 12), reaching the milestone of over BRL 13 billion raised for the Brazilian Government. The state-owned company, linked to the Ministry of Mines and Energy (MME), was created in 2013 to manage contracts of the Pre-Salt Polygon production sharing regime and sell the shares of oil and natural gas under Brazilian law in these contracts. Over the past ten years, the sharing regime grew and generated development for the country, going from 1 to 23 contracts and 15 companies operating under this regime, in successful partnerships. Out of 23 contracts, 8 are in production. The sharing contracts have also generated around BRL 160 billion in government participation and taxes.

Today, sharing contracts account for 27% of national production. That equals to 982,000 barrels per day. PPSA estimates that, by the end of the decade, production under this regime will exceed 2 million barrels per day. With the volume produced to date, over 34 million oil barrels and 200 million cubic meters of natural gas under Brazilian law have already been sold by the company.

“PPSA is a consolidated state-owned company and has delivered concrete results for the Government, contributing to the development of Brazil. These results are just the beginning, and there is much more to be delivered. By the end of their lifespan, the nine contracts with declaration of commercial viability, alone, amount to BRL 2 trillion for the country, including government shares, oil and gas sales and taxes, in addition to BRL 700 billion in investments. All this means employment, income and resources for education and health. We are fully supported by the Minister of Mines and Energy, Alexandre Silveira, to play our role and prepare for the next leap with the increase in contract production and accomplishment of new actions that are being designed by the Ministry of Mines and Energy”, says Tabita Loureiro, Chief Technical Officer and Deputy Chairwoman of PPSA.

Over the past ten years, the company also approved ten production individualization agreements, ensuring a greater Government participation in the pre-salt layer.

Celebration of 10 Years

To celebrate the company’s anniversary, the MME and PPSA shall hold a ceremony on November 21 in the Brazilian Noble Hall of the Geological Survey (SGB), attended by Minister Alexandre Silveira. On that occasion, the temporary exhibition “Pre-Salt and Society – 10 years of the production sharing regime” will be inaugurated at the Earth Sciences Museum (Micter), which is part of the SGB, in Urca (RJ). The exhibition is a partnership between PPSA, Micter, SGB and MME.

This is a temporary exhibition, which will remain open to visitors between November 22, 2023 and January 31, 2024. Admission is free. Over 10,000 people are expected to visit the exhibition, which tells the story of how oil is explored in the pre-salt layer, over 7,000 meters deep, and how it generates wealth, employment, income, health and education for Brazilian society.  Samples of rocks and cores, oil extracted in different pre-salt fields and models of equipment used by the industry for oil exploration and production will be among the exhibited articles. The evolution of sharing contracts over the past ten years and PPSA’s performance will also be presented, showcasing how the company generates value for society.

The materials presented in the exhibition were provided by companies Bureau Veritas, ExxonMobil, Galp, Sedimentary Geology Laboratory – UFRJ, Modec, Petrobras, Shell Brasil, SLB, TechnipFMC and Vallourec.

On November 22, PPSA shall hold the Pré-Sal Petróleo Technical Forum – 10 years of history.  The event opening will be performed by Pietro Mendes, Secretary of Petroleum, Natural Gas and Biofuels of the Ministry of Mines and Energy (MME), with attendance of several authorities and executives from the oil and gas industry for discussions in three panels: “Paths for development of the natural gas market in Brazil and the role of PPSA”; “The appeal of pre-salt” and “Pre-salt decarbonization initiatives”. The Forum will be broadcast live on the agency’s YouTube channel epbr.  See the schedule here https://www.presalpetroleo.gov.br/forum-tecnico-ppsa-10-anos/

During the Forum, the company will launch its annual study detailing production estimates and revenue from sharing contracts for the next ten years. “We will show the expected growth in contracts, which will turn into benefits for society as a whole. The good results show that exploration in the Pre-salt Polygon needs to be encouraged and continued. Today, 65% of the area still remains uncontracted. Potencializa E&P, a program of the Ministry of Mines and Energy, is currently studying ways to make sharing contracts more appealing and adapt them to this new reality of greater exploratory risk, exploring opportunities in both pre-salt and post-salt layers. We want more contracts. These are important for ensuring resources for society and are invaluable to Brazil’s energy sovereignty and self-reliance.”, concluded Tabita.