This paper intends to study presalt region economic viability by choosing the case of Libra field, the only presalt field to be acquired in Production Sharing Contracts bid round until now. Libra is considered one of the most important exploratory areas worldwide and its Brazil´s biggest oil field.
For the conclusions of this paper it was necessary to estimate production volumes and costs involved in the development of Libra oil field according to industry parameters and government data. A forecast for oil prices was stipulated according to historical data and future contracts. A cashflow could be determinate by concatenating expected income with production sharing agreement government outcomes, making it possible to define the Payback, Internal Return Rate (IRR), and Net Present Value (NPV) of the investment. Varying the discount rate it was possible to study the NPV sensibility.
The Brazilian new exploratory frontier region denominated Presalt is gaining remarkable importance in country´s economic and political scenario. The outlook for the next 10 years is that presalt fields will represent over 50% of Brazilian´s production, calling attention of researchers and experts. To aim high economic benefits, in such alluring area, local Government presented a series of adjustments in its regulations for E&P industry.
However, drilling and producing in Presalt presents technology challenges, due to significant distances from shore, extreme water depths, thick and unstable salt layers, and still limited knowledge over reservoir rock. Research and appraisal will consume high investments, since technologies to be used in the region involve high costs. Added to this there are uncertainties concerning the current regulatory changes, which constrain production profits, and rise concerns over projects viability in the region.