Repsol has made several major discoveries in locations identified as priority markets, such as the United States, Russia, Brazil, Peru, Algeria and Colombia. The more than 40 discoveries we have made since 2008, which include eight of the largest discoveries in the world, are a testament to Repsol's exploratory success and secures the pipeline of projects which will support growth in future years.
275% reserve replacement ratio at year end 2013.
Repsol has achieved this exploration record through a firm commitment to four determining factors:
Repsol invests 1 billion dollars per year in exploration activities with the objective of adding between 300 to 350 million barrels of oil equivalent to our contingent resources every year and 200 to 250 barrels to Proven Reserves. This strategy has delivered a constant increase in the reserves replacement ratio of the company for the past six years.
We have professionals of more than 40 different nationalities. Qualified personnel that are specialized in a number of areas, which has enabled us to develop a team of excellence.
3. Technological innovation for exploration.
Hydrocarbons are found in deep waters or complex geological areas, which we can currently access thanks to technological innovation and new techniques in Exploration and Production.
The Sherlock Project integrates knowledge of geology, geochemistry and high resolution analytical chemistry. The goal is to characterize the different elements of an oil system, in order to reduce the geological risk and increase the exploration success rate.
Other significant developments include 4D modelling techniques, which provide dynamic images of how liquids move in a site. Drilling systems equipped with sensors are another decisive factor in exploration success as they analyse the subsoil while drilling to detect hydrocarbons.
The high cost of exploration operations makes investment in technology necessary, because obtaining better images of the subsoil is a key factor. This led to the creation of the Kaleidoscope project, to develop advanced techniques to process seismic images in extreme conditions.
The project focuses on developing latest generation mathematical algorithms and the latest developments in supercomputing to obtain high resolution seismic images, enabling us to process data 15 times quicker than our competitors.
The Kaleidoscope project has been recognized worldwide as one of the most innovative projects in this field. The applications for the oil industry are also technologies 100% owned by Repsol.
Therefore, thanks to technological innovation, at Repsol we have an accuracy level of over 30%, a very high percentage, above the sector average.
At Repsol we have developed a significant position in the most attractive basins, diversifying our geographical presence by entering new OECD countries with high potential.
Repsol Sinopec Brazil made a big discovery in deep waters in the Campos basin, called Pão de Açúcar, where we found hydrocarbons at two different levels with a column measuring a total of 480 meters, one of the tallest discovered in Brazil.
If the high expectations are confirmed, Pão de Açúcar will become the first large field operated by a foreign oil company in Brazil. This discovery sets a new landmark for the company in deep water drilling.
In this way, Repsol has consolidated its position as one of the leading energy companies in terms of exploration: In recent years, following an intense exploratory campaign, we have made significant discoveries, some of which have been considered among the largest in the world.
Brazil is a key area of growth for Repsol, having two of the ten key growth projects, Sapinhoa and Lapa, and several additional exploratory discoveries.