FOTO

: Mic

halT

roch

imia

k/S

tock

.xch

ng

Cristina Pinho

Integrated Operations Management E&P Operation & Maintenance General Manager •

IO 2010, Trondheim

Content

Motivation & Evolution of Integrated Management in E&P

GeDIg –Digital Integrated Management

GIOp Concept & Objectives

GIOp Drivers & Governance

Communication Plan

Deployment Methodology

GIOP UO-BS Implementation

Final Message

1

2

3

4

5

6

7

8

Motivation

Motivation

to apply

GIOp

1

2

3

Growth and Complexity of Activities

New challenges

New opportunities

Petrobras

Motivation for the GIOp: Growth and Complexity of Activities

PetrobrasOthers

Potiguar

Bahia Sul

Espírito Santo

Campos

Santos

Ceara & Potiguar

Pelotas

Margem Equatorial

Solimões

São Francisco

SEAL& REC & TUC

• Exploration Area: 155.0 thousand km2

• 265 exploratory blocks

• 35 appraisal plans

• 313 production concessions

Growth supported by developing mature fields, and initial development of pre-salt frontier

Main

Projects

Scheduled(2010/2014)

Aruanã

EWT

Tiro Pilot

Guará

EWT

Tupi NE EWT

CachaloteBaleia Franca

TupiPilot

Mexilhão

UruguáTambaú

P-57Jubarte

P-56Marlim

Sul

4 EWTPre-salt

Aruanã

EWT

Tiro / Sidon

P-55Roncador

FPSO Espadarte

4 EWTPre-salt

P-63Papa-Terra

Guará

Pilot

3 EWTPre-salt

Guaiamá

P-58Whales

Park

P-62Roncador

Tupi NEPilot

2 EWTPre-salt

+42%

Pre-salt Heavy

oil Natural Gas Extended

Well

Test

Dom

estic

Oil

Prod

uctio

n(m

illio

nbp

d)

2.100

2.980

Motivation for the GIOp: Growth and Complexity of Activities

Motivation for the GIOp: Growth and Complexity of Activities

Long-Standing Technology Leadership in Deepwater

Petrobras operates 20% of global deepwater production Source: PFC EnergyNote: 1.

These 15 operators account for 98% of global deepwater production in 2009. Minimum water depth is 1,000 feet (about 300 meters)

Offshore Production Facilities

1005

889101212131515

45

0 20 40 60 80 100

OthersJIHGFEDC

BA

Petrobras

FPSO Semi Spar TLP Other

Deepwater Production2009 Gross Global Operated¹

1988Marimbá1,610ft

1994Marlim3,370ft 1997

Marlim

Sul5,600ft

2003Roncador

6,180ft

2009Tupi

7,125ft

1977Enchova

410ft

PBR20%

A13%

B12%C

12%

D12%

E7%

F7%

G4%

H3%

Other10%

Pre-Salt map

• Total Area: 149,000 km2

• Area Under Concession: 41,772 km2 (28%)• Area Not Under Concession: 107,228 km2 (72%)• Area With Petrobras Interest: 35,739 km2 (24%)

BlocksBMS-8BMS-9BMS-10BMS-11BMS-21BMS-22BMS-24

ConsortiumBR (66%),

SH (20%) e PTG (14%)BR (45%),

BG (30%) e RPS (25%)BR (65%),

BG (25%) e PAX (10%)BR (65%),

BG (25%) e PTG (10%)BR (80%),

PTG (20%)EXX (40%),

HES (40%) e BR (20%)BR (80%),

PTG (20%)

Petrobras

Shore Distance = 300 kmTotal Area = 15.000 km2

Motivation for the GIOp: New Challenge

Evolution for Integrated Operations in E&P

Evolution for the integrated management in E&P

GIOp

CSDDecisionSupportCenter

LogisticsCIM-TBMIntegrated Center for Turbo

Machinery -

Condition Based Maintenance & Inspection

S3D3D

VisualizationRoom

SCRRemoteControlRoom

OROResourcesOperation

Optimization-

Onshore -

GeDIgIntegrated

DigitalManagement

CCOOperation

ControlCenter

Integrated Digital Management GeDig

Lessons Learned with GeDIg

GeDIg is the Digital Integrated Management of production processes, to add value to the oil fields, through the appropriate use of technology and people skills

Technology

CorporateSystem

KPI´s

Real Time Operation

Modeling &Simulation

Remote ControlSCADA

Wells Data

Daily Info

Seismic Reservoir Wells ArtificialLift

TopsideProcess

Operation

Human Resources

GeDIgProcessPeople

Integration

Processes Added Value∑

Lessons Learned with GeDIg

The pilots sought for Integration of People and Processes and Best use of Technology

Pilots performed

SantosSantos

Six Pilots Projects

UN-AM

UN-BS

Lessons Learned with GeDIg

• All pilots showed the achievement of gains;

• Change management was the most intense and difficult stage of the pilot project;

• The asset manager involvement and those involved in the project proved to be key to achieving goals;

• The definition of the project must be fully understood and agreed by all involved;

• Lessons learned showed that the best results should be achieved by focusing more on process redesign and integration of people. Change from Digital Management to Integrated Operations

Integrated Operations Management GIOp

GIOp Concept

Faster and better decisions

GIOpIntegrated operations management, with focus in the strong articulation across the technical disciplines and

companies involved in the activities.

People Process Technology

• data in the relevant time;• new workflows;• collaborative environments;• proactive focus.

Objectives

GIOp Objectives

Production Efficiency Enhance

Operational Cost Reduction

Reservoir Recovery Factor Increase

Investments Costs Reduction

GIOp Drivers

GIOp Drivers

Process

People

Management

TechnologyInfrastructure

Communication

Plan

Communication Plan

N1

Ni: Management Level

WF: Work Force

Communication to the workforce N1 Road Show

GIOp

E&P

Ope

ratio

nal P

rinci

ples

Com

munication

through them

anagement chain

2nd Evaluation ofCommunicationeffectiveness

1st Evaluation ofCommunication

effectiveness

START ►

N2

N3

WF

Deployment Methodology

Deployment Methodology

AppraisalFeasibility

& Concept Selection

ExecutionDetailed Design

&Procurement

Front End Engineering Design

(FEED)

Man

agem

ent

Org

aniz

atio

nW

ork

Proc

esse

sTe

chno

logy

NewOperating

Philosophy

SupportingGIOp

Tenets &Capabilities

GIOp Scope (Opportunity Assessment

& Prioritization)

Project Management: Planning, Personnel Assignment & Accountability…

Change Management: Communication, training, new performance metrics…

Map Activities(location, functional

Responsibility, outcomes, …)

Design NewWork Processes

(actors, technical needs,Frequency, output, …)

Implement NewWork Processes

Develop FunctionalSpecifications

(technology capabilities,interfaces,

performance parameters)

Develop & FinalizeTechnical Specifications(compliance w/ technical

Control documents)

Construct NewModified Facilities

Define New Org Structure(functions, reporting lines, supplier role, resources)

Map Organizational Competences to Identified Activities

Implement New Org Structure

Develop & Implement Training Plans

GIOp Governance

GIOp Governance

Steering Committee

CorporateCoordination

CorporateCoordination

Executive Committee

Executive Committee Executive

Committee Executive Committee

ProductionWellExploration

Operational Coordination

Operational Coordination

Operational Coordination

Service

Operational Coordination

GIOP UO-BS Implementation

GIOp implementation

2012201120102009 2013

GIOp PilotScope Definition

Process MappingDevelopment

BuildingRoll out

GIOp ProjectOpportunities Assessment

Conceptual Design

Basic Project

Solution Deployment

Temporary Environment

Final Setup

Deliverables in Temporary SetupFinal Setup

ATTENTION Points

• Greenfield experience: previous Petrobras initiatives were more focused on brown fields.

• Aggressive timeline to implementation.

• Lack of expertise considering a fresh Operations Unit (Santos Basin).

• Communication considering the Pilot Project.

Final Message

Final Message

Benefits should be visible

The GIOp is the company's strategic decision regarding the new challenge

The focus is on people, not on technology

Faster and better decisions