Petrobras Reports Drop In Proved Reserves At YE:18 Vs YE:17

Instant Max AI

(Petrobras, 30.Jan.2019) — Petrobras discloses the volume of its proved petroleum reserves (oil, condensate and natural gas), estimated as of the end of 2018, according to ANP/SPE (National Agency of Petroleum, Natural Gas and Biofuels/Society of Petroleum Engineers) and SEC (US Securities and Exchange Commission) criteria.

Proved Reserves according to ANP/SPE criteria

According to ANP/SPE criteria, as of December 31, 2018, Petrobras’ proved oil, condensate and natural gas reserves reached 11.957 billion of barrels of oil equivalent (boe), as shown in Table 1. At the end of 2017, these volumes amounted to 12.415 billion boe.

Petrobras succeeded to replace 96% of the produced volume, disregarding the effects of the divestments carried out in 2018, mainly due to drilling of new wells, positive responses to water injection and to the good performance of reservoirs in the pre-salt of Santos and Campos basins. The ratio between proved reserves and produced volume is 13.9 years.

The divestment operations provided the anticipated monetization of 0.421 billion boe related to: transfer of 35% of Lapa field rights and 22.5% of Berbigão, Sururu and Oeste de Atapu fields rights to Total; transfer of 25% of Roncador field rights, materializing the strategic partnership with Equinor; and establishment of a Joint Venture of Petrobras America Inc. with Murphy Exploration & Production Co.

Proved Reserves according to SEC criteria

According to SEC criteria, as of December 31, 2018, Petrobras’ proved oil, condensate and natural gas reserves reached 9.606 billion of barrels of oil equivalent (boe), as shown in Table 3. At the end of 2017, these volumes amounted to 9.752 billion boe.

According to SEC criteria, Petrobras succeeded to replace 125% of the produced volume, disregarding the effects of divestments in 2018. The ratio between proved reserves and produced volume is 11.1 years.

Historically, Petrobras submits at least 90% of its proved reserves to certification according to SEC criteria. Currently the certifying company is D&M (DeGolyer and MacNaughton).

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