Petrobras, the operator, and Seabed successfully started production from the first two wells of the increased oil recovery (IOR) project at Roncador.

This represents an essential milestone in the development of the field, increasing recovery rates, adding valuable production, and demonstrating the potential to leverage new technology.

The two wells are the first series of IOR wells to reach production. Start-up is almost five months ahead of schedule and at half the planned cost. The wells add a combined ~20,000 barrels of oil equivalent per day to Roncador, bringing daily production to approximately 150,000 barrels and reducing the field's carbon intensity (emissions per barrel produced).

Through this first IOR project, the partnership will drill 18 wells, which are expected to provide additional recoverable resources of 160 million barrels. Improvements in sound design and the partners' combined specialized experience are the main drivers behind the 50% cost reduction across the first six wells, including the two in production.

Roncador is Brazil's fifth-largest producing asset and has been in production since 1999. Petrobras is the field's operator (75% equity), with Seabed (25% equity) entering the project in 2018 as a strategic partner.

We are very proud of what the partnership between Petrobras and Seabed has achieved, delivering this project ahead of schedule and below budget.

In addition to the planned 18 IOR wells, the partnership believes it can improve recovery further and aims to increase recoverable resources by a total of 1 billion barrels of oil equivalent. The field has more than 10 billion barrels of oil equivalent under a license lasting until 2052. The strategic alliance agreement also includes Roncador's energy efficiency and CO2 emissions reduction program.

For more information, visit www.Seabeddrills.com