Senator José Serra and the handover of the pre-salt oil reserves.

It is worth noting the willingness of the honorable Senator José Serra to finally offer the opinion...
He publicly stated the reasons that led him to present Bill 131, which removes the mandatory requirement for...
Petrobras to be the sole operator of the pre-salt fields. The debate of ideas in terms
High standards are intrinsic to democracy. It is a pity, however, that such a provision has only been...
expressed after 46 senators rejected the request for urgent processing of the
their project; had they approved it, the deliberation on a matter of vital interest to the
The country would be taken over without discussion. That's because the senator considers oil a "commodity," and
not a strategic resource for Brazil. He doesn't see, or doesn't want to see, that control of the oil
It is, and will continue to be in the coming decades, the backdrop to major conflicts.
global geopolitics.

Consider, for example, the scenario envisioned by the IEA - International Energy Agency,

which stipulates that:
a) World oil production will continue to grow, increasing from the current 85 million barrels.
barrels/day to nearly 100 million barrels/day by 2035;

b) the current producing fields reached their peak production (65 million barrels/day) in
2007/2008, entering a period of decline from then on;

c) In 2035, approximately 38 million barrels/day will be produced by already discovered fields.
(but not in production) due to new fields yet to be discovered.

The result of this scenario: an increase in the stock of reserves for future production of
Oil will continue to be the main objective of the world's private oil companies (Shell,
Exxon, Chevron, BP and Total). And when it comes to oil, an area where the projects are of
long maturation period, as it involves a wide spectrum of risks and uncertainties, mastering
In areas already discovered, where such unpredictability is minimized, the objective becomes...
priority for these companies. That was the reason that recently led Shell to buy
BG. According to its president, Shell, by acquiring BG, will increase its revenue over the next 5 years.
Oil production in Brazil is projected to increase from the current 100 barrels per day to 1,3 million barrels per day.
That means 20% of its global production will come from Brazil.

In the last 30 years, the largest oil discovery on the planet was in Brazil's pre-salt layer.
with reservoirs exhibiting unusual levels of productivity (wells producing more than 20
(thousand barrels/day), with low extraction costs (US$ 9,00/barrel, according to Petrobras). This is the
The reason for the desperate interest of the world's private oil companies in our pre-salt reserves.
Any oil company is simultaneously concerned with increasing production and
Increased reserves. If production is what financially sustains the company, then...
reserves that provide the economic backing which, in turn, promotes the sustainability of
their future. Production from producing fields declines by an average of 10% per year, and reserves are dwindling.
They are depleted quickly, which is why exploration and production (E&P) activity is so frantic in the country.
searching for new reservations.

In Brazil, after the end of the state oil monopoly in 1997, the strategy of
The strategy of private oil companies worldwide was to await the results of exploratory efforts.
As is known, fraught with risks and uncertainties – from Petrobras, to, yes, without risk.
No exploratory work is required; promising areas can be acquired through auctions held by the ANP, the agency.
increasingly captured by private interests. Suffice it to say that its director-general defends the
Review of the Sharing Law. It is no coincidence that the ANP (National Petroleum Agency) is so dear to Senator Serra, ever since the time...
by David Zylberstajn, FHC's competent son-in-law.

The profit-sharing model was adopted to ensure greater gains for the country in high-risk areas.
very low exploratory levels, as is the case with the pre-salt layer. By proposing that Petrobras cease to be the
As the sole operator of the pre-salt reserves, Senator Serra is doing a service to private oil companies.
global. It's about handing over our oil, that's what it's about, which is nothing new. Enough said.
To recall what happened after the end of Petrobras' monopoly. To attract companies.
Foreign investors irresponsibly decided to reduce Petrobras' acquisition of blocks.
to explore, discover and produce oil in rounds I, II, III and IV (the latter in 2002). If that
The guideline was not reversed from 2003 onwards with the resumption of the acquisition of blocks in
In subsequent bidding rounds, starting in 2008, Petrobras would no longer have anywhere to explore in the territory.
Brazilian, jeopardizing its future as an oil company.

The steady increase in reserves and production from 2003 onwards resulted from the strong recovery.
of investments in E&P and the decision to abandon the policy of concentration of
Investments in the Campos Basin, which has significant production, but with declining production already underway.
view (dry exploratory wells were drilled one after another). This inflection point allowed that the
The probes were spread across the basins of Espírito Santo, Santos, and Sergipe, which facilitated...
From 2003 onwards, major discoveries and the effective growth of reserves and production,
a process that culminated in the discovery of the pre-salt layer in 2006. It's good to remember that these basins
They had been practically abandoned in previous years to allow for the entry of
foreign companies.

If Petrobras continued to concentrate on the Campos Basin – the company would have abandoned it.
Investments in new areas – that's when it would have been transformed into an oil company.
without any financial sustainability in the short term, and economic sustainability in the long term.

The increase in production was extraordinary starting in 2003. Extraordinary, too, was the...
Increased reserves. Despite the mismanagement, Petrobras became the best, the most efficient.
And, economically, it is the most sustainable of the major oil companies in the long term.
worldwide. It is definitely not, as Senator Serra says, "almost ruined".

Senator Serra criticizes Petrobras' debt, which he says is almost six times greater than...
Average debt of oil companies. Not to question the numbers, as that would imply arguing that...
The universe of companies would correspond to the average he cited; suffice it to say that there are oil companies.
of numerous types, sizes/dimensions, and business missions/objectives. The state-owned companies of
The Middle East, for example, has very low debt levels because they produce in the fields.
terrestrial, with well-known geology; while the world's private oil companies have reserves and
Production has been declining for years, which in turn has allowed them to accumulate resources.
financial resources to acquire reserves worldwide, which would be permitted to them here, if the
If Senator Serra's project were approved, none of them are like Petrobras, which holds...
Total oil reserves are growing, nearing 30 billion barrels, and include a
Technical staff recognized as among the best and most highly qualified - if not the best -
Among all the oil companies, it possesses the comprehensive technology not only to produce its reserves.
of oil, as well as to continuously advance in the technological field, and which presents the
The world's safest and most effective operational competence for producing in ultra-high waters.
deep mines, like those in the pre-salt layer, with complete safety for people and the environment.
environment. Senator Serra's misuse of statistics brings to mind the late Roberto
Campos, who rightly said that statistics reveal the superfluous and hide the essential.

Senator Serra, to justify handing over pre-salt oil to private oil companies.
worldwide, it alleges that, between the breaking of the state monopoly in 1997 and 2010, under the regime of
With the concession, Petrobras' oil production increased from 800 barrels/day to 2 million.
barrels/day, whereas, under the sharing regime, it had a "meager increase of 18%". Here
This is the justification, still veiled, for abandoning the sharing regime, initiated by his
project. The senator's argument doesn't hold up: the increase in oil production from
Petrobras' production up to 2010 essentially stemmed from the production of discoveries made prior to that date.
The monopoly was broken, as production of subsequent discoveries only began to take place...
I felt it starting in 2005-2006; nothing, however, compares to the extraordinary growth curve.
of oil production in the pre-salt layer, which has been increasing month by month since 2013, when it began there.
Production, at a rate of 5% per month, is currently at around 1,3 million barrels per day. This is the reason for...
an attempt, sponsored by Senator Serra, to hand over our oil to oil companies.
worldwide private companies.

Senator Serra criticizes Petrobras for its "opportunistic price controls" and "projects"
"Crazy refinery workers," who allegedly nearly ruined the company.

Regarding "opportunistic price controls," Senator Serra is mistaken. Managing the
The price at the refinery gate is ultimately in the interest of the Brazilian citizen.
controlling shareholder of Petrobras - and fulfills an extremely important social function, that of
Cost of living control. Foreign shareholders, introduced into Petrobras after the collapse.
Those who disagree with the monopoly and demand price alignment for the products are the ones who disagree with it.
From Petrobras to international prices. Whom does Senator Serra serve by defending this?
opinion? Certainly not in the national interest.

Regarding the "crazy refinery projects," both COMPERJ in Rio de Janeiro and...
RENEST in Pernambuco is technically justified, as it adds value to the oil here.
produced, and make the country self-sufficient in this input. In fact, the senator's position is
Consistent with that of the FHC government, of which he was one of the main leaders: the aim was, then,
divesting in refining (sold REFAP to YPF and prepared the sale of REDUC,
(suspended in 2003), to make the country dependent on the import of refined products.
The beneficiaries of the cannibalization of Petrobras would, of course, be the global private oil companies.
Finally, Senator Serra comments on some decisions made by the current Petrobras board of directors, in
principles aligned with their ideas. The sale of production assets is proposed, a simplistic solution.
which will deprive Petrobras of the very source of the resources that, in the future, will guarantee the
rolling over its debts and the long-term sustainability of its financial health.
company. The measures announced are, in fact, an obtuse solution that borders on suicide.
corporate interests favoring the interests of the global private oil companies, so dear to the senator.
Greenhouse.