Asset report
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36 Pages

Brazil Santos exploration basin


Brazil Santos exploration basin

Report summary

Nearly 36 billion barrels of oil equivalent have been discovered in the basin as a whole to date, the vast majority of which was found in the last ten years. The Lula oil find in 2006 was the first of several giants that confirmed the Early Cretaceous pre-salt to be the world's largest new oil play of recent years. Value creation in the Santos Basin over the past ten years has been phenomenal, due to the super-giant volumes discovered in this play.  Despite the basin's huge yet-to-find volumes, value creation and returns in our outlook period are much poorer than in the last decade, due largely to the new PSC terms and the high-cost environment. Our outlook of the full-cycle economics of the Santos basin assumes an IRR of 12% at Base prices.

What's included?

This report includes 2 file(s)

  • Brazil Santos exploration basin PDF - 832.39 KB 36 Pages, 26 Tables, 40 Figures
  • Brazil Santos.zip ZIP - 3.71 MB

Description

Oil and gas exploration is an industry in constant motion, from technological breakthroughs to shifting supply and demand. The high costs of finding and developing new oil and gas fields that can be commercially developed has created a challenging atmosphere, with explorers increasingly seeing low returns, low value and slow progress.

This Exploration Basin report provides a detailed analysis of exploration of this basin, including discovery and development costs, location maps and information about licensing and fiscal terms. You'll also find information about discovery and development costs and full-cycle returns.

Explorers and advisors can use this report to understand the history and potential value of this basin.

Wood Mackenzie has access to historic data for over 450 basins and forecasts for more than 125 basins. We provide accurate information on the cost of exploration compared to the value of discoveries so that you can develop profitable strategies.

Our in-depth analysis gives you the information you need to navigate the ever-changing challenges of oil and gas exploration so you can make critical commercial decisions.

  • Key facts
  • Summary and key issues
    • Key issues include:
  • Location maps
  • Participation
  • Key companies
  • Geology
  • Exploration
    • Wells drilled
    • Basin success rates
  • Reserves and resources
    • Volumes discovered
      • Yet-to-find potential
    • Play inputs
      • Creaming curve and key play data
      • Model field pool size distribution
      • Existing discoveries and modelled yet-to-find pool size distribution
  • Development
    • Yet-to-find costs and underlying development assumptions
  • Costs
  • Fiscal and regulatory
    • Licensing
    • Fiscal terms
  • Economic assumptions
    • Oil and gas prices
      • Early Cretaceous pre-salt
      • Late Cretaceous-Tertiary oil
  • Economic analysis
    • TYP economics
    • Outlook economics
    • Development value
      • Late Cretaceous - Tertiary oil
      • Prospect breakeven price
      • Early Cretaceous - pre-salt
      • Late Cretaceous - Tertiary oil
      • Expected monetary value (EMV)
    • Play economics
    • Full cycle basin economics
    • Implied acreage value
      • Average value of future discoveries and implied acreage value

In this report there are 66 tables or charts, including:

  • Key facts
    • Play level data
    • Assumptions
    • Key facts: Table 3
  • Summary and key issues
    • Value creation versus investment (TYP period)
    • Value creation versus investment (outlook)
    • Commerciality index
  • Location maps
    • Exploration history map
    • Location maps: Image 2
  • Participation
    • Licensed exploration acreage
    • Expiry forecast of current licences
  • Key companies
    • Key licence holders
    • Key well operators (TYP period)
    • Gross exploration wells completed by operator
    • Net exploration wells completed by participant
    • Company success rates and discoveries
  • Geology
    • Key play characteristics
  • Exploration
    • Drilling activity by well type
    • Cumulative exploration wells by play
    • Discoveries and success rates
    • Discoveries by licence year and drilling year
  • Reserves and resources
    • Basin creaming curve
    • Key basin data
    • Volumes discovered by year
    • Average discovery size and volume per well by year
    • Top discoveries (TYP period)
    • Cumulative discoveries by play
    • Cumulative volumes discovered by play
    • Forecast data by play (outlook)
    • Early Cretaceous pre-salt
    • Reserves and resources: Table 4
    • Late Cretaceous - Tertiary oil
    • Reserves and resources: Table 5
    • Early Cretaceous pre-salt
    • Late Cretaceous - Tertiary oil
    • Early Cretaceous pre-salt
    • Late Cretaceous - Tertiary oil
  • Development
    • Early Cretaceous pre-salt
    • Late Cretaceous - Tertiary oil
  • Costs
    • Recent discovery costs
    • Summary of discovery and development costs
    • Exploration and appraisal spend
    • Exploration spend per well and average well depth
  • Fiscal and regulatory
    • Typical fiscal terms - concession contract - Late Cretaceous-Tertiary Oil play
    • Typical fiscal terms - PSC - Early Cretaceous pre-salt play
  • Economic assumptions
    • Brent and local oil price assumptions
    • Henry Hub and local gas price assumptions
    • Brent and local oil price assumptions
    • Henry Hub and local gas price assumptions
  • Economic analysis
    • Value creation, spend and volume discovered
    • Returns by drilling year
    • Breakeven price versus prospect size
    • Value creation versus investment
    • Value of potential discoveries
    • Unit value of potential discoveries
    • Value of potential discoveries
    • Unit value of potential discoveries
    • Breakeven price of exploration
    • Discount rate breakeven price sensitivities
    • Breakeven price of exploration
    • Discount rate breakeven price sensitivities
    • Early Cretaceous pre-salt
    • Late Cretaceous - Tertiary oil
    • Early Cretaceous - pre-salt
    • Economic analysis: Table 4
    • Full cycle economic analysis
    • Economic analysis: Table 6
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