Our executives talk about the importance of partnerships in exploration and production
Partnerships and collaboration among oil companies have become increasingly important for the development of the exploration and production area (E&P) around the world, particularly in the current scenario of economic turndown and low oil prices. This was the keynote of the Collaboration 2.0 - Reinventing the E & P Industry panel that our Executive Manager of Acquisitions and Divestitures, Anelise Lara, moderated on the second day of the SPE Annual Technical Conference and Exhibition, the largest event in the global oil engineering area, held on Tuesday (Sept. 27) in Dubai, the United Arab Emirates.
The panel, formed by our partners in the Libra area, focused on the experience of those sharing daily activities at the block. Our executive manager for the Libra area, Fernando Borges, highlighted the diversity of the companies that make up the consortium, both with respect to the location and in terms of profiles. He explained that the project is an example of building a strong partnership, with the sharing of talents, knowledge, experience, in addition to financing costs. "This collaborative environment can be very useful for new ideas, benefiting the Libra project," he said.
Borges showed examples where technological cooperation and exchanges of experiences between project partners afforded savings in investments. One was the adoption of an alternate water and gas injection system through the same flexible line, in addition to the reduction in the diameter of the service line, which reduces the investments necessary by $400 million. Another was the simplification in the project's intelligent well completion system, which also decreases investments by $150 million. Learn about the pioneering technologies of the pre-salt.
Libra is the first project conceived under the production sharing model (operating and production system whereby one or more companies have signed a contract with a state company that calls for the compensation of the parties by sharing an oil field's production) in Brazil. In this project, our partners are Shell (20%), Total (20%), CNOOC (10%), and CNPC (10%). Petróleo Pré-Sal S.A (PPSA) is the Federal Government's representative. To date, seven wells have been drilled and the eighth, located in the northwest area of the block, is currently being drilled. The Libra early production system is expected to start operating in 2017.
The block is not our first case of a successful partnership. We operate successfully in partnership with several other oil companies in the exploration and development of onshore and offshore assets, which intensified with the pre-salt. This strategy enabled an intensive exchange of experiences and transfer of technology, increasing our competitiveness globally. Today, a mere ten years after the first discovery, the pre-salt cluster is already producing more than a million barrels of oil per day.
Our new 2017-2021 Business and Management Plan has as one of its bases the enhancing of collaboration between other companies and us. The idea is that we can reduce the risks of participating in projects and sharing investments with other companies, reducing their need for capital to develop projects. We plan to invest $74.1 billion in this period. With the creation of partnerships and divestitures, we expect to leverage additional investments worth $40 billion from other industry companies operating in Brazil over the next ten years.
Participating in the panel were the vice-president of Shell Brazil, German Burmeister, the president and CEO of Total E&P Americas, Michel Hourcard, the vice-president of CNPC Latin America, Wang Yinxi, and the vice-president of CNOOC International Limited, Hongbo Zo. Representing and speaking on behalf of the government was the president of Petróleo Pré-Sal S.A. (PPSA), Oswaldo Pedrosa.
Four of our employees were awarded in the 2016 SPE Regional Award - South America and Caribbean by the Society of Petroleum Engineers (SPE), one of the most important entities in the global oil and gas industry. The distinction was granted to engineers Flávio Vianna (General Manager of Project Implementation), Cezar Pauli (manager of Lifting, Delivery, and Processing), Adalberto Rosa (master consultant in Reservoir Engineering), and Marcia Lisboa (senior consultant in Process Safety, who retired late last year) for their contributions to the oil industry.