QGEP. Brazil s independent oil & gas producer positioned for growth

Transcription

1 QGEP Brazil s independent oil & gas producer positioned for growth

2 Disclaimer This presentation contains some statements and information about the Company that reflect the current views and/or expectations of the Company and its managers with regard to its future activities. These include all statements containing forecasts and projections or that indicate or imply future results. performance or achievements. which may include such words as "believe". "predict". "expect". "contemplate". "will probably result". or any other words or expressions of similar meaning. Such statements are subject to a series of expressive risks. uncertainties and assumptions. Readers are cautioned that several important factors may lead actual results to significantly diverge from the plans. targets. expectations. estimates and intentions expressed herein. There can be no assurance that the Company will achieve or is likely to achieve the future results or projections contained herein. Under no circumstances shall the Company or its directors. officers. representatives or employees be liable to any third parties (including investors) should they make decisions. investments or business acts based on information and statements presented herein. nor shall the Company be liable for any indirect damages. loss of profit. or similar consequences thereof. The Company does not intend to provide shareholders with any revised versions of the statements or analysis of differences between the statements and actual results. This presentation does not contain all the necessary information for a complete investment assessment on the Company. Investors must produce their own assessments. including the associated risks. before making an investment decision. do disclaimer # 1

3 QGEP Portfolio continued optimization High operational efficiency Expertise and credibility in Brazilian O&G industry Singular technical capacity Solid financial position and liquidity Low-cost structure % 84 Years of experience in E&P EBITDAX Margin Average Q17 MM boe 2P reserves* R$ 1.1bi 30% R$ 2.2bi 15 8 Net Cash 3Q17 Free float Market Cap Concessions Basins *Reserves estimated bygaffney, Cline & Associates 2

4 History of Steady Progress Manati Field is discovered Manati Field s First Gas QGEP I is created QGEP s IPO raised R$1.5 bi Farm-ins (BM-S-8 and BS-4) Carcará Discovery in Block BM-S-8 Successful drilling and completion of two Atlanta Field wells ANP s 11 th Bidding Round (acquisition of 8 blocks) ANP s 13 th Bidding Round (acquisition of two blocks in Sergipe- Alagoas basin) FPSO Petrojarl I Customized for the Atlanta Field Sale to Statoil of interest in BM-S-8 ANP s 14 th Bidding Round (acquisition of two adjacent blocks in Sergipe-Alagoas Basin) 70% Farm-outof Sergipe- Alagoas Basin blocks, acquired at ANP s 13 th Bidding Round 3

5 QGEP: Positioned for further growth in 2018 Manati Largest producing asset expected to increase production in 2018 Atlanta Oil producing asset, production to come on line in 1Q18 Sergipe-Alagoas Seismic data acquisition and analysis in partnership with ExxonMobil and Murphy Oil PAMA and Foz do Amazonas Additional farm-outs planned for 2018 Cash payments from BM-S-8 asset divestiture and Sergipe-Alagoas farm-outs Increasing net cash position providing significant financial flexibility for a more robust capital allocation program 4

6 New opportunities tied to Brazil s O&G industry recovery Opening of pre-salt to international operators Schedule of new annual bidding rounds, including pre -salt areas Basic regulatory changes : flexible local content Repetro renewal has been discussed, including accelerated amortization of investments definition of unitization rules New players in recent bidding rounds, indicating building interest by bonuses offered and oil profit percentages in shared bids Use of hydrocarbon reserves as collateral is also under discussion 5

7 Leveraging our strengths: Highly Qualified Technical Team Vast experience In Brazilian and foreign basins Development of Fields with challenging characteristics 36% are ex- Petrobras technical staff Total headcount 125 Education Experience 33% 31% MBA B.S 28% 8% M.S PhD 38% over 30 years 20% 11to 20years 34% Up to 10years 8% 21to 30years 6

8 AP Foz do Amazonas Pará-Maranhão Ceará Growth and diversification of QGEP s asset base MA BA CE PE SE AL Pernambuco-Paraíba Sergipe-Alagoas Presence in the main Brazilian producing basins from low to medium risk and in frontier areas Manati Camamu-Almada ES Espírito Santo SP RJ PR Santos C 1 Production 3* Development * Camarão Norte under evaluation 13 Exploration 77

9 Atlanta Field Santos Basin ES Itapemirim RJ Macaé SP Niterói Cabo Frio Rio dejaneiro West of Cabo Frio QGEP Operator with 30% interest Atlanta Oliva Libra Franco Atlanta Heavy Oil 14 o API Reserves Certified by Gaffney, Cline & Associates (MM bbl) 1P 2P 3P

10 Atlanta First Oil from the Early Production System (EPS) in 1Q18 3 horizontal producing wells (2 already drilled and completed) Agreement for Sale of Production Signed with Shell for EPS oil Oil and gas production through FPSO With contracted capacity of 30 kbpd Improved oil prices Heavy oil prices up due to product shortages 9

11 Atlanta On the road to developing a permanent system EPS First Oil(1Q18) kbpd during 3 years Drilling potential of a third well Decision on definitive system: Potentialfor 9 additional wells Full development of the field Maximum production near 75 kbpd Total EPS CapEx U$780MM Total of 12 producing wells EPS OpEx First 18 months U$410k/d After U$480k/d 10

12 SERGIPE STATE Aracajú Sergipe-Alagoas Interest in high potential exploratory blocks POÇO VERDE BARRA MOITA BONITA MURIÚ CUMBE FARFAN SEAL-M-351 SEAL-M-428 SEAL-M % operator 30% 20% SEAL-M-501 Discovery Acquisition of 100% interest in two blocks at ANP s 13 th Bidding Round in 2015, 70% farm-out in 2017 Acquisition of 30% interest in two adjacent blocks at ANP s 14 th Bidding Round 11

13 Sergipe Alagoas High recoverable potential volume Logistics facilities Medium to low risk prospect Light oil expectation API Seismic acquisition scheduled for 2018 Long duration test at Farfan by Petrobras in

14 AP Foz do Amazonas Pará-Maranhão Other Exploratory Assets Ceará Pará-Maranhão and Foz do Amazonas (PAMA-M-265, PAMA-M-337, FZA-M-90) PA MA CE RN PB 100% interest All seismic data already acquired, farm-out process is scheduled for 2018 PE SE AL Pernambuco-Paraíba Camamu-Almada (CAL-M-372) Environmental license is pending BA Camamu-Almada Blocks of Espírito Santo and Ceará Basins Evaluating potential ES Espírito Santo 13

15 Strategic Partnerships with large operators 60% Independent Local expertise is QGEP s competitive advantage In developing new partnerships 40% Integrated 60% Foreign 40% Brazilian Diversified partnerships With global players 14

16 Gas Treatment Station Gas Compression Station Salvador Manati Field Largest asset with significant production visibility Manati QGEP s interest 45% Petrobras 35% (Operator) Geopark 10% Brasoil 10% 2P Reserves 26.9 million boe * Owned production infrastructure and contractual price increases sustain high operating margins *Corresponding to 2P reserves certified by Gaffney, Cline & Associates at December 31, 2016 net for QGEP 15

17 Manati Steady Cash Flow Generation Total Daily Gas Production (MMm³/day) e Manati Field EBITDA Margin Average Q e +65% Accounts for production of nearly 30% of gas in the Northeast region Agreement in place to sell entire reserve amounts with a take-or-pay clause Average production capacity of ~5.5 MMm³/day 16

18 QGEP: at an inflection point after 3 years of recession in Brazil Average daily gas production (MMm 3 / day) Net Revenue (R$ million) M M17 EBITDAX Net Income (R$ million) (R$ million) M M17 17

19 QGEP Financial Profile Cash and Total Debt (R$ million) CAPEX (R$ million) 1, ,338 1, M e 2018e Cash Debt Capex Farm-in/bidding round + Asset sale receivable BM-S-8 US$379 MM 50% ANP s approval 12% Production Sharing Agreement of the 2 nd bidding round 38% Unitization agreement + Farm-out reimbursement receivable: R$70 MM reimbursement of signing bonus Potential distribution of special dividends 18

20 Capex 2017/2018 (US$ million) Development Exploration Others Total * 1 4 BS-4 Development 11 tth B Round Blocks S E A L 13 th B round S E A L 14 th B round *Out of this amount, US$1.5 million will be reimbursed per farm-out agreements for Blocks SEAL-M-351 and SEAL-M-428 blocks with ExxonMobil and Murphy Oil. Others Total 19

21 Operational Safety Integrated Management System (SGI) C o m m i tment to h e a l th, safety a n d e nviro n mental i s s u e m a n a gement i s ex p re ssed by fo l l o wing certifications: ISO (Environmental Management System) OHSAS (Occupational Health and Safety Management System) Management Plan ICS Methodology (Incident Command System) for coordinated responses to emergencies Global SubseaWell Containment System Operated by Wild Well Control contingency plans in response to possible submarine events 20

22 Corporate Governance General Meeting Ethics, Governance and Sustentability Committee Compensation Committee Board of Directors Non-permanent Fiscal Council E xecutive Board Non-statutory Committees They advise the Board of Directors through guidance and recommendations on issues to be detailed and developed. All governance bodies requirements and duties are set forth in the Company s bylaws and respective charters. 21

23 QGEP s Compliance Program consists of a set of m echanisms which a im at prese rving the ethical conduct, fomenting a honest and t r anspa rent workplace. Our tools: Code of Ethical Conduct reinforces the ethical conduct and provides behavioral standards to our employees Procedures Aplication of Disciplinary Measures Whistleblowing treatment Outsourcing Policies Conflict of interests Anticorruption Confidential Channel Training All board members, members of the Executive Board, employees, advisors and outsourced workers, trainees, eligible suppliers and others defined as QGEP s employees, participate in training on the Company s Compliance Program make them aware of Code of Ethical Conduct and related Policies 22

24 Our goal is to be recognized as a leading Brazilian O&G producer in deep waters QGEP s experience as a deep water operator, the relationships developed through partnerships with global oil companies, the diversification and quality of our asset portfolio combined with our capital allocation discipline, position us to benefit from the industry s future recovery. 23

25 Thank you! Investor Relations Q G EP Participações S.A. Av. Almirante Barroso I 52 I Sala 1301 Centro I Rio de Janeiro, RJ CEP IR Phone Fax ri@qgep.com.br