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Business Intelligence launched by Firjan shows the relevance of mature fields for the economy and energy security
The launch event last Friday (08) presented a technical note highlighting the potential for increasing the recovery factor and domestic production
Rio de Janeiro, November 11, 2024 – Firjan launched its new BI last Friday (08), highlighting the great potential for increasing the recovery factor of mature fields in the country. The technical note “The relevance of mature and marginal fields for the state of Rio”, also produced by the Federation of Industries of Rio de Janeiro, was presented during the ceremony, and highlighted the importance of regulatory adjustments to improve the business environment and development of this production.
The event approached the defense of the expansion of investments in the sector, simplification of processes, incentives and the addition of technologies that contribute to greater efficiency in exploration and production in Brazil’s mature and marginal fields.
“Continuously encouraging investment in these fields through regulatory policies that evolve with the market, such as reducing royalty rates on incremental production, has proven to be an effective strategy for extending the useful life of fields, increasing the oil and gas recovery factor and fostering the inclusion of sustainable technologies that reduce the production carbon footprint,” says Karine Fragoso, Oil, Gas, Energy and Maritime General Manager at Firjan. According to her, expanding these measures could increase the attractiveness of investments, increasing oil recovery with less need for new developments and relying on the existing infrastructure.
Held in the PRIO’s auditorium, the country’s largest independent oil and gas company in Botafogo, the event was attended by representatives of the market and public authorities. The presentation was made by Karine Fragoso, Oil, Gas, Energy and Maritime General Manager at Firjan, Emiliano Fernandes, President of Firjan’s Oil and Gas Business Council and Chief Legal and Institutional Officer at PRIO, Fernando Montera, Oil, Gas, Energy and Maritime Scenarios at Firjan and Pedro Alem Filho, Executive Manager of Onshore Waters, Shallow Waters and Industrial Policy at IBP.
Scenario highlighted
Last year, production from mature fields generated over R$ 6.5 billion in royalties, with around 70% coming from the state of Rio de Janeiro. In the same period, only the fields with incremental production benefits from reduced royalties generated R$ 1.16 billion, 56% of which came from fields located offshore Rio de Janeiro.
Currently, the average oil recovery factor in mature fields is 20%. “Considering that the fields highlighted by the Dynamic Panel reach the global average level of oil recovery (30%), it would be possible to envision an additional production of just over 4.8 billion barrels, which in royalties alone could translate into more than R$ 92 billion in revenue for the different government levels,” Karine points out.
Emiliano Fernandes stressed the need to debate innovative technologies, such as tiebacks, and the guarantees needed for changes in the sector to be effective: “If we don’t start looking at new incentives and actions now, we’re going to shorten the useful life of these assets. At a time when we are discussing energy transition and security, the impact on this sector would be critical. When we talk about extending the useful life of said fields, we’re not just talking about royalties or production, but about an important social impact in terms of job creation, income and training.”
About BI
The BI presented brings a specific display and visibility to data that already exists on mature fields and needs to be highlighted. Among the proposals for improvements in the regulatory environment presented in the Technical Note are the following: a wide-ranging review of regulations to foster the adoption of tieback projects (development of production clusters); encourage infrastructure sharing; maintaining and improving the incentives for operating mature fields and marginal accumulations; benchmark price for calculating government participations appropriate to the production of mature fields and marginal accumulations; Maintenance of the REPETRO special regime; Exclusion of the Selective Tax for the Oil and Natural Gas industry; and speed up the environmental licensing process.
To download the Technical Note “The relevance of mature and marginal fields for the state of Rio”, click here. Power BI is available at this link.
