Competitive Advantages and Strategy

Through its pioneering spirit, profound knowledge of Brazilian basins and an administration driven by results and growth, QGEP has established a prominent position for itself in the country’s oil and gas industry. By adopting the strategy of building a diversified and balanced portfolio, the Company has become an important independent deep-water Operator throughout Brazil’s coast. 

QGEP invests in growth by acquiring new concessions through farm-ins and bidding rounds by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). It favors minority holdings and aims to balance its portfolio between blocks where the Company is the operator, and those where it is not. This growth is characterized by the constant search for exploratory projects or projects in the early stages of development, wherethe Company  can increase its technical expertise and the possibilities for future revenue. The company’s independence, size, and qualification as a Type A Operator are factors which provide favorable conditions for a proactive search for partnerships with other companies, including international players.      

The steady cash flow from the Manati field, combined with capital discipline, ensures the Company’s financial sustainability, nurturing the search for new opportunities that allow for the medium and long-term replenishment and significant increase of its reserves.

This steady growth is ensured by a critical view of the analysis of business opportunities, and by the adoption of the best corporate governance practices and social responsibilities. 

Competitive Advantages 

Top quality, balanced and diversified portfolio with assets in production, development and exploration stages

The portfolio contains hydrocarbon reserves, contingent resources, and prospective resources, which result in a base of cash generating assets and a future of promising exploratory projects. Of these, prominent future projects expect of to discover considerable volumes of light oil in the pre-salt blocks of the Santos Basin. In the emerging basins, the Company holds interest in areas where there are expectations of significant volumes of oil and gas, with an appropriate risk and return ratio. 

Experience as a deep-water Operator

As a pioneer in the attainment of the Type A Operator qualification, in 2012 the company became the first independent, Brazilian operator in the premium area of the pre-salt based on its performance in the Atlanta and Oliva fields in the deep waters of the Santos Basin. Thus, QGEP is in a unique position for acquiring new assets without operational limitations, and is potentially a preferential partner for new entrants, with the ability to establish partnerships with national and international companies.

Diversified partnerships

QGEP is part of consortiums that include national and international companies of all sizes, many of which are experienced in deep-water exploration. These associations offer an exchange of knowledge that hones QGEP’s practices during the conception of its projects. 

Balance between operated and non-operated blocks 

One of the Company’s goals is to increase its presence as a deep-water operator in Brazil. In addition to applying its knowledge and technical qualification as an operator, the Company is able to proactively conduct the exploratory and production processes and to apply its parameters of quality, disseminating and consolidating its brand. This goal, however, is contingent upon the maintenance of a fixed operational structure compatible with its growth stage and its financial conditions, as well as its risk exposure criteria. Therefore, its strategy also includes the participation in non-operated blocks. In these partnerships, QGEP absorbs other operational means and practices, exchanges experiences, and participates in problem solutions, constantly applying the best techniques and practices in the industry.

Expressive cash flow, derived from its production asset and unique financial position

QGEP is the majority shareholder in the Manati field, which has been in operation since 2007 and is one of the biggest non-associated gas fields in production in Brazil. The Company also owns a long-term contract for the sale of gas, with set volume and price, which guarantees a stable cash flow that can maintain its operation and finance part of its investments. Additionally, it has a net position with robust cash flow and a diligent investment policy, offering it a comfortable financial situation.  

Highly qualified technical team, with international experience

Comprised of professionals with solid academic education, extensive knowledge on the geology of Brazilian and international basins and on the latest technologies for production and drilling. These talented individuals held key positions, especially at Petrobras, and worked both in Brazil and abroad, in teams that were responsible for the discovery of extremely relevant fields, such as Garoupa, Tubarão, Marlim, Albacora, Roncador, Piranema, Tiber, Akpo, Agbami, and for the development of challenging fields, such as Cascade, Chinook, Cottonwood.

Extensive experience in the oil and gas industry, with the support of the Queiroz Galvão Group

QGEP is one of the companies comprising the Queiroz Galvão Group, an industrial conglomerate that has been active in the oil and gas chain for over 35 years, with a proven track record in the development of important enterprises in various sectors of the economy. 

 

Last updated on 2016-08-23T15:11:00

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