Economist Agência Nacional do Petróleo, Gás Natural e Biocombustíveis BRAZIL COUNTRY REPORT Gustavo Tinoco Economist Agência Nacional do Petróleo, Gás Natural e Biocombustíveis 1

Presentation Structure 1. INTRODUCTION 2. BDEP FACTS AND NUMBERS 3. BDEP OPERATIONS 4. BDEP STRATEGIC PLANNING 5. LESSONS LEARNED

1. INTRODUCTION

According to the Law n°9478/97: 1.1. Agency Responsibility ANP is the National Regulatory Authority for the Petroleum and Gas Industry – from the upstream to downstream activities ANP has autonomy in Its board of director decisions and Its own annual budget In the government structure ANP works under the Ministry of Mines and Energy According to the Law n°9478/97: Art 22. The technical assets, formed by data and information on the Brazilian sedimentary basins, are also considered an integral part of the national petroleum resources, to be collected, maintained and administrated by ANP.

Data Regulation issues 1.1. Agency Responsability (cont.) Data Regulation issues New geological / geophisical research depends on ANP authorization All new data acquired in petroleum exploration and explotation must be copied to ANP ANP must create a National Data Repository ANP must receive and maintain those and other data and make them available to the public Petrobras had to transfer all its petrodata to ANP (2,30% of current data collection) In 2000 – BDEP is founded

The competitive market structure led to a growth 1.2. When did the NDR start? 1998: Petrobras Data collection transfer to ANP (legacy data) 2000: Technical cooperation agreement with Geological Survey from Brazil (CPRM) The competitive market structure led to a growth of data acquisition activities inside Brazilian territory 1.800.000 km seismic lines 19.000 wells 912.500 km non-seismic data Seismic Data Well Data Represents 2,3% of current BDEP´s Data collection In volume Non-seismic Data

1.3. BDEP Activities Data collection Data Delivery Confidentiality Period ANP Standards Quality Control Data Loading Data Storing ANP (study and offer blocks) Licensing Rounds (data package) Associated Members Eventual Users Universities Oil Companies (exclusive data) DACs Data Acquisition Companies (non-exclusive data) ANP data acquisition (foment data)

1.4. BDEP Geographical Scope 33 Sedimentary Basins 7 with oil production Campos and Santos Basin > 90% oil production 7,5 million km2 5,0 million km2 – Onshore 2,5 million km2 – Offshore

1.5. Status of the NDR Mature Well Data Store Seismic Data Store Under Development Non-Seismic Data Store Non-Seismic Standards Automation of Quality Control Planned Modern Technologies for Data delivery Database Integration Core Samples Facilities

2. BDEP FACTS AND NUMBERS

2.1. Major Purposes of the NDR The BDEP is considered as a key factor to access the oil sector inside Brazil The efficient and easy access to petroleum data is essential for the decision making process inside oil industry BDEP data collection is important to: Offer new exploration blocks on ANP Licensing rounds; Study and support investment decisions On those offered blocks Increase geological knowledge

2.2. BDEP yesterday and today 2000 2010 INCREASE TOTAL COLLECTION x 44 3,12 PB 0,071 PB NUMBER OF MEMBERS x 1,9 14 27 NUMBER OF APPLICATIONS x 3,7 519 140 REVENUE 10,3 mi x 3,2 3,2 mi 12

2.3. Data types e Volumes

3. BDEP OPERATIONS

Banco de Dados de Exploração e Produção 3.1. Operation of the NDR ANP TEAM (15) – Team coordination / planning / internal control: Only by civil service public exam (bureaucracy) OUTSOURCING COMPANY (32) – IT services/ Wharehousing and Data Processing support: Service Acquisition Tender process (bureaucracy) Banco de Dados de Exploração e Produção BDEP SOFTWARE COMPANY (10)– PetroBank MDS Technical Support / Maintenance / New tools: Service Acquisition Tender process (bureaucracy) TECHNICAL COOPERATION AGREEMENT (2)– Acquisitions and service contracts management

3.2. Data Submission SEISMIC DATA WELL DATA NON-SEISMIC DATA MEDIA TYPES 3592 cartridges DVD SEISMIC DATA CD Hard Copy Reports WELL DATA NON-SEISMIC DATA On-line data submission and delivery: under construction ANP Standards need to be updated

3.3. Standards Used Submitted Data must be sticked to ANP standards: Seismic Data – ANP1B; Well (Composite Log and Well Data) – ANP05 e ANP07; Potencial Methods – ANP2B; Coordinate System and Polygons – ANP4B; Formation Test – ANP08; Rocks and Fluids – ANP06. Being studied: geochemistry and specific non-seimic data (eletromagnetic, telluric, others).

3.4. Access Methods BDEP WebMaps Basic information access: Surveys available Surveys name Surveys Location (...) HelpDesk Team

3.5. Data Publication/ Release - USERS BDEP serves the whole community interested on activities of oil exploration and production in Brazil. We divide users into four groups: “Associated Member” Members pay for a annual quota, according to one of three available plans. Aditional data with lower prices Smaller producers special plan “Eventual Users” Eventual users can ask for specific data anytime, but at a higher cost “Universities” ANP provides a quota of free access for academic purposes “ANP” BDEP provides data to support ANP studies upon specific areas DATA PACKAGE for Licensing Rounds ONLY PUBLIC DATA CAN BE RELEASED TO EXTERNAL USERS ANP CAN ACCESS ALL DATA COLLECTION AT ANYTIME

3.5. Data Publication/ Release – ASSOCIATED MEMBERS Eventual Users: all the others concessionaires and service companies

3.5. Data Publication/ Release – DATA DELIVERED In 2010 BDEP operated 519 data requests (9% of them from ANP – internal clients) It´s listed bellow the amount of data delivered to BDEP clients: 3.77 TB POST-STACK SEISMIC 8.04 TB PRE-STACK SEISMIC 854 Wells WELL LOGS 1,565 WELL REPORTS 15 programs NON-SEISMIC PROGRAMS

3.6. Service Charges (cont.)

COMPANIES (Association Plan / Eventual Users) 3.7. BDEP Funding Model ANP UNIVERSITIES COMPANIES (Association Plan / Eventual Users) OPERATORS & EADs ANP Annual Budget $$$ $$$ BDEP Receives: Well, Seismic and Potential field data Provides: Public data

4. BDEP STRATEGIC PLANNING

4.1. Challenges and Successes STRATEGIC PLANNING 2009-2014 EFFICIENCY QUALITY MANAGEMENT SERVICES

4.1. Challenges and Successes (cont.) Vision "Being an international reference center on technological innovation, search, collection, storage, availability, processing and interpretation of technical data acquired in Brazilian basins, providing services, encouraging and subsidizing the oil and natural gas in Brazil within five years”.

4.1. Challenges and Successes (cont.) 31 Projects to achieve our strategic goals

Projects highlights ON-LINE DATA SUBMISSION/ DELIVERY Integration with Petrobras network to transfer well data and post-stack seismic data through a dedicated link SFTP to exchange gravimetry data with universities Extend on-line access to entire oil industry AUTOMATED ACCESS TO PRE-STACK DATA COLLECTION Increase storage capacity or buy a new robotic tape library (in study) Remaster Project: Reduce amount of tapes (3590 – 3592) with quality check

Projects highlights NEW SERVICES Build a 3D visualization room Acquire WorkStations and softwares to make possible seismic data processing and analysis inside BDEP facilities

Project PowerQC for Well Data Web Systems to data certification Basic quality control done by companies using our software BDEP Web System Assure Data Quality Avoid waste of time on data returning Increase team efficiency BDEP OIL COMPANIES / SPECS

Check the conformity of the LIS and DLIS archives with ANP 05 standard Project PowerQC for Well Data All the submitted well data to BDEP goes through a quality check process before loading the data at PetroBank The Quality check is based on the standard ANP05 – for well logs QUALITY CHECK STEP 1 Performed by companies Using PowerQC tool QUALITY CHECK STEP 2 Still manual Check the conformity of the LIS and DLIS archives with ANP 05 standard Validation of the mnemonics from standard ANP05 Check compatibility with ANP database (SIGEP)

Project PowerQC for Well Data EFFICIENCY GAINS The well team does not spend a minute performing QC1 – It used to take 35 minutes per well in average A lot of data was returned to companies for failing at QC1 – now data only gets inside BDEP with PowerQC certificate It is a first step for on-line data submission

Project runs 24h a day inside BDEP facilities Project Remaster Tape Transcription (3590 to 3592 tapes): 205 thousand tapes are going to be copied Quality control on pre-stack seismic surveys Assure Data Quality Reduce amount of tape stored at BDEP Assure automated access to pre-stack seismic collection Project runs 24h a day inside BDEP facilities

Project Remaster OPERATION TEAM SEISMIC TEAM Copies the tapes 24 hours a day Controls all process of copying Works on the copied tapes Performs a quality check to certificate the data Errors during copying process: Incomplete data Corrupted Tape Duplicated traces Assembling error Wrong Label (1,3% with problem up to now) Load and retrieve the data inside the system to check compatibility with the original data

Data certification by seismic team begins Project Remaster Timeline Project Goals Aug 2007 Dec 2007 Dec 2008 Apr 2008 Dec 2009 Nov 2010 Dec 2010 Mai 2011 Jun 2012 Remaster is launched End of Remaster 6.819 Tapes copied 46.914 Tapes copied 78.370 Tapes copied 110.000 Tapes copied 126.988 Tapes copied 150.000 Tapes Copied 205.805 Tapes Copied Data certification by seismic team begins 9.992 Tapes certificated 33.000 Tapes certificated 46.121 Tapes certificated 80.000 Tapes Certificated 205.805 Tapes Certificated

5. LESSONS LEARNED

The necessity to create mechanisms to reduce the work of the NDR with Quality control by transferring this responsibility to the companies Lack of job instructions in the past for the adequate loading process generated a lot of work on data loaded incorrectly and with lack of information (data attributes) Feedback from BDEP users and oil industry is very important to improve our services Tendering a whole new solution for BDEP in near future: huge effort to design and write down all the specifications and Service Level Agreements for the new solution (what we want?)

Thanks! www.bdep.gov.br Gustavo de Freitas Tinoco Economist Tel: (+55 21) 3545 - 0405 E-mail: gftinoco@anp.gov.br www.bdep.gov.br