UNITED STATES GOVERNMENT MEMORANDUM

To: Public Information (MS 5030) Plans Section, Office of Field Operations (MS 5231)

Public Information copy of DOCD Control # - S-07518 Type - Supplemental Development Operations Coordinations Document Lease(s) - OCS-G16965 Block - 206 Walker Ridge Area Operator - Petrobras America Inc. Wells No. 6 and 7
DRILLSHIP

Attached is a copy of the subject plan for public comments on issues that should be addressed in an Environmental Assessment. It has been deemed submitted as of this date and is under review for approval.

Michelle Griffitt Plan Coordinator

G16965/WR/206 G16965/WR/206 526 FSL, 3782 FWL 533 FSL, 3718 FWL G16965/WR/206 G16965/WR/206 WELL/6 WELL/7 Botm Lse/Area/Blk Surface Location Surf Lse/Area/Blk Site Type/Name Description - Rig Type - Subject: From: January 3, 2012

### 7 December, 2011 

### Proprietary V ersion



## Supplemental Development Operations Coordination Document for the Cascade / Chinook Development Project for Cascade East Development Wells S-7518 WR Block 206 No. 6 and 7 Public V ersion

# Public V ersion

Submitted by: 

# Supplemental Development Operations Coordination Document

for the


# Cascade / Chinook Development Project for Cascade East Development Wells S-7518 WR Block 206 No. 6 and 7

7 December

, 2011Petrobras America Inc. Page iii

Development Operations Coordination Document Cascade / Chinook Development Project 

## Table of Contents

Section/Chapter Page

Cover Letter

List of Tables ......................................................................................................... ix List of Figures........................................................................................................ xi Acronyms and Abbreviations .............................................................................. .xii
1 Introduction and Plan Contents............................................. 1-1 Introduction.......................................................................................................... 1-1 1(a) Plan Information Form (MMS-137) ........................................................ 1-7 1(b) Location ................................................................................................. 1-12 1(c) Safety and Pollution Prevention Features.............................................. 1-18 1(d) Storage Tanks and Production Vessels.................................................. 1-19 1(e) Pollution Prevention Measures .............................................................. 1-20 1(f) Additional Measures Safety and Pollution Prevention Measures.......... 1-20
2 General Information........................................................... 2-1 2(a) Application and Permits........................................................................... 2-1 2(b) Drilling Fluids.......................................................................................... 2-1 2(c) Production................................................................................................ 2-1 2(d) Oils Characteristics.................................................................................. 2-1 2(e) New or Unusual Technology ................................................................... 2-2 2(f) Bonding Statement................................................................................... 2-3 2(g) Oil Spill Financial Responsibility............................................................ 2-3 2(h) Deepwater Well Control Statement ......................................................... 2-3 2(i) Suspension of Production ........................................................................ 2-3 2(j) Blowout Scenario..................................................................................... 2-3 2(k) Chemical Products ................................................................................... 2-7 3 Geological and Geophysical (G&G) Information.......................... 3-1 3(a) Geological Description ............................................................................ 3-1 3(b) Structure Maps......................................................................................... 3-1 3(c) Interpreted 2-Dimensional and or 3-Dimensional Seismic Lines............ 3-1 3(d) Geologic Structural Cross-Sections......................................................... 3-1 3(e) Shallow Hazards Report .......................................................................... 3-1 3(f) Shallow Hazards Assessment .................................................................. 3-1 3(g) High-Resolution Seismic Lines ............................................................... 3-1 3(h) Stratigraphic Column............................................................................... 3-1Table of Contents, continued

Section/Chapter Page

Page iv Petrobras America Inc. Development Operations Coordination Document Cascade / Chinook Development Project 3(i) Time vs. Depth Tables ............................................................................. 3-1 3(j) Geochemical Information ........................................................................ 3-1 3(k) Future G&G Activities............................................................................. 3-1 4 Hydrogen Sulfide (H2S) Information........................................ 4-1 4(a) Concentration........................................................................................... 4-1 4(b) Classification ........................................................................................... 4-1 4(c) H2S Contingency Plan ............................................................................. 4-1 4(d) Modeling Report ...................................................................................... 4-1
5 Mineral Resource Conservation Information ............................. 5-1 5(a) Technology and Reservoir Engineering Practices / Procedures .............. 5-1 5(b) Technology and Recovery Practices / Procedures and Reservoir Information .............................................................................................. 5-1 6 Biological, Physical, and Socioeconomic Information .................. 6-1 6(a) High Density Deepwater Benthic Communities Information.................. 6-1 6(b) Topographic Features Map ...................................................................... 6-4 6(c) Topographic Features Statement (Shunting) ........................................... 6-4 6(d) Live Bottoms (Pinnacle Trend) Map ....................................................... 6-4 6(e) Live Bottoms (Low Relief) Map.............................................................. 6-5 6(f) Potentially Sensitive Biological Features ................................................ 6-5 6(g) Remotely Operated Vehicle (ROV) Monitoring Survey Plan ................. 6-5 6(h) Threatened and Endangered Species Information ................................... 6-5 6(i) Archeological Report............................................................................... 6-5 6(j) Air and Water Quality Information.......................................................... 6-6 6(k) Socioeconomic Information..................................................................... 6-6 7 Waste and Discharge Information........................................... 7-1 7(a) Projected Generated Wastes .................................................................... 7-1 7(b) Projected Ocean Discharges .................................................................... 7-1 7(c) Modeling Report ...................................................................................... 7-2 7(d) NPDES Permits........................................................................................ 7-2 7(e) Cooling Water Intakes ............................................................................. 7-2
8 Air Emissions Information .................................................... 8-1 8(a) Complex and Plan Emissions................................................................... 8-1 8(b) Screening Questions ................................................................................ 8-1 8(c) Worksheets............................................................................................... 8-1 8(d) Contact Information................................................................................. 8-2 8(e) Emissions Reduction Measures ............................................................... 8-2 8(f) Verification of Non-Default Emissions Factors ...................................... 8-2 8(g) Non-Exempt Activities ............................................................................ 8-2Table of Contents, continued

Section/Chapter Page

Petrobras America Inc. Page v Development Operations Coordination Document Cascade / Chinook Development Project 8(h) Modeling Report ...................................................................................... 8-2 9 Oil Spill Information ........................................................... 9-1 9(a) Oil Spill Response Planning .................................................................... 9-1 9(b) Oil Spill Response Discussion - BSEE Areas of Interest ........................ 9-5 9(b).1 Land Segment and Resource Identification ........................... 9-5 9(b).2 Response ................................................................................ 9-6 9(b).3 Decanting Strategy............................................................... 9-13 9(b).4 CGA Equipment Limitations ............................................... 9-13 9(b).5 Environmental Conditions in the GOM............................... 9-13 9(c) Oil Spill Response Discussion - USCG Areas of Interest ..................... 9-14 9(d) Modeling Report .................................................................................... 9-16 10 Environmental Monitoring Information...................................10-1 10(a) Monitoring Systems............................................................................... 10-1 10(b) Flower Garden Banks National Marine Sanctuary................................ 10-4 11 Lease Stipulations Information.............................................11-1 11(a) Topographic Features Stipulation.......................................................... 11-1 11(b) Live Bottoms (Pinnacle Trend) Stipulation........................................... 11-1 11(c) Military Warning Area Stipulation........................................................ 11-1 12 Environmental Mitigation Measures Information .......................12-1
13 Decomissioning Information ................................................13-1 14 Related Facilities and Operations Information .........................14-1 14(a) Related OCS Facilities and Operations ................................................. 14-1 14(b) Transportation System ........................................................................... 14-6 14(c) Produced Liquid Hydrocarbons Transportation Vessels ....................... 14-7 15 Support Vessels and Aircraft Information................................15-1 15(a) General................................................................................................... 15-1 15(b) Diesel Oil Supply Vessels...................................................................... 15-1 15(c) Drilling Fluids Transportation ............................................................... 15-2 15(d) Solid and Liquid Wastes Transportation ............................................... 15-2 15(e) Vicinity Map .......................................................................................... 15-2 16 Onshore Support Facilities Information ..................................16-1 16(a) General................................................................................................... 16-1 16(b) Support Base Construction or Expansion .............................................. 16-1 16(c) Support Base Construction or Expansion Timetable............................. 16-1 16(d) Waste Disposal....................................................................................... 16-1Table of Contents, continued

Section/Chapter Page

Page vi Petrobras America Inc. Development Operations Coordination Document Cascade / Chinook Development Project 16(e) Air Emissions......................................................................................... 16-2 16(f) Unusual Solid and Liquid Wastes.......................................................... 16-2 17 Sulfur Operations Information .............................................17-1 18 Coastal Zone Management Act (CZMA) Information....................18-1 19 Environmental Impact Analysis (EIA)......................................19-1 19(a) Impact Producing Factors (IPFs) from the Proposed Activities............ 19-2 19(b) Existing Resource Conditions................................................................ 19-3 19(b).1 Air Quality ........................................................................... 19-3 19(b).2 Water and Sediment Quality.............................................. 19-10 19(b).3 Coastal Environments ........................................................ 19-12 19(b).4 Offshore Environments...................................................... 19-23 19(b).5 Marine Mammals............................................................... 19-24 19(b).6 Sea Turtles ......................................................................... 19-30 19(b).7 Pelagic Birds ...................................................................... 19-31 19(b).8 Marine Fisheries ................................................................ 19-32 19(b).9 Commercial and Recreational Fisheries ............................ 19-34 19(b).10 Protected Fish Species ....................................................... 19-37 19(b).11 Essential Fish Habitat ........................................................ 19-38 19(b).12 Social and Economic Conditions....................................... 19-39 19(b).13 Infrastructure...................................................................... 19-48 19(b).14 Onshore Infrastructure ....................................................... 19-49 19(b).15 Archeological Resources ................................................... 19-50 19(b).16 Other Uses of the Marine Environment............................. 19-51 19(c) Project Impacts .................................................................................... 19-54 19(c).1 Air Emissions..................................................................... 19-55 19(c).2 Noise Emissions................................................................. 19-56 19(c).3 Effluents and Discharges ................................................... 19-56 19(c).4 Physical Disturbances to the Seafloor ............................... 19-57 19(c).5 Impacts from Wastes Sent to Shore................................... 19-58 19(c).6 Marine and Coastal Resources........................................... 19-59 19(c).7 Accidents and Spills........................................................... 19-61 19(c).8 Other Impacts Identified .................................................... 19-62 19(d) Environmental Hazards........................................................................ 19-62 19(d).1 Geological Hazards............................................................ 19-62 19(d).2 Hydrogen Sulfide Determination....................................... 19-62 19(d).3 Loop Current and Deep Ocean Currents............................ 19-62 19(d).4 Hurricanes and Named Storms .......................................... 19-63 19(d).5 Operating Environmental Criteria for Product

Offloading.......................................................................... 19-64 19(e) Alternatives.......................................................................................... 19-64Table of Contents, continued

Section/Chapter Page

Petrobras America Inc. Page vii Development Operations Coordination Document Cascade / Chinook Development Project 19(f) Mitigation Measures ............................................................................ 19-65 19(g) Consultation and Coordination ............................................................ 19-65 19(h) List of Preparers................................................................................... 19-69 19(i) References............................................................................................ 19-70
20 Administrative Information .................................................20-1 20(a) Exempted Information Description........................................................ 20-1 20(b) Bibliography .......................................................................................... 20-1

Appendices 1 Cascade Chinook SOP Approvals
1a Approved DWOP
2a GEMS Summary of Environmental Conditions for Cascade and Chinook
2b GEMS Shallow Hazards Report for Facilities

3 Air Emissions Worksheets
4 Oil Spill Response Equipment Response Times
5 Oil Spill Risk Analysis (OSRA) Report
6 NTL-06 Worst Case Discharge Evaluation
7-A Rig Waste Generated and Discharged
7-B FPSO Waste Generated and Discharged
7-C Rig Waste to Shore

7-D FPSO Waste to ShorePetrobras America Inc. Page ix

Development Operations Coordination Document Cascade / Chinook Development Project 

## List of Tables

Table Page
1-1 Storage Tanks and Production Vessels.............................................................. 1-19 2-2 Oils Characteristics ............................................................................................. 2-2 2-3 Worst Case Discharge Scenario........................................................................... 2-6 9-1 CGA Oil Spill Response Equipment and Staging Areas ..................................... 9-2 9-2 CCA Oil Spill Response Equipment and Staging Areas ..................................... 9-2 9-3 OSRO Mechanical Recovery and Storage Capabilities....................................... 9-2 9-4 Dispersant Inventories ......................................................................................... 9-3 9-5 Worst Case Discharge Scenario........................................................................... 9-4 9-6 Trajectory by Land Segment................................................................................ 9-5 9-7 Oil Spill Response Results................................................................................... 9-6 9-8 Oil Spill Response Equipment Limitations ....................................................... 9-13 9-9 FPSO Discharge Scenarios (USCG Areas of Interest) ...................................... 9-15 9-10 Shuttle Vessel Discharge Scenarios (USCG Areas of Interest)......................... 9-16 14-1 FPSO Topsides Design Parameters ................................................................... 14-6 14-2 Shuttle Vessel Transportation Information........................................................ 14-7 15-1 Support Equipment (Drilling and Completions Operations) ............................. 15-1 15-2 Support Equipment (FPSO Production Operations).......................................... 15-1 15-3 Diesel Oil Supply Vessels.................................................................................. 15-2 16-1 Onshore Support Facilities................................................................................. 16-1 18-1 Consistency Review Summary (Louisiana)....................................................... 18-5 18-2 Consistency Review Summary (Texas)........................................................... 18-15 18-3 Consistency Review Summary (Mississippi) .................................................. 18-22 19-1 National Ambient Air Quality Standards........................................................... 19-5 19-2 Coastal Ambient Air Quality ............................................................................. 19-7 19-3 Marine Mammals in GoM ............................................................................... 19-25 19-4 Sea Turtles in GoM.......................................................................................... 19-30List of Tables, continued

Table Page

Page x Petrobras America Inc. Development Operations Coordination Document Cascade / Chinook Development Project 19-5 Fish Species Associated with Sargassum ........................................................ 19-32 19-6 Commercial Landings of Oceanic Pelagic Species ......................................... 19-35 19-7 Pelagic Species and Known Habitat Requirements and Spawning Areas....... 19-37 19-8 Protected Fish and Marine Mammal Species .................................................. 19-38 19-9 Population in Texas Counties Where Onshore Support Facilities may be Located............................................................................................................. 19-40 19-10 Top Three Industries by Number of Paid Employees in Texas Counties Where Onshore Support Facilities may be Located .................................................... 19-41 19-11 Population Numbers in Louisiana Parishes Where Onshore Support Facilities may be Located........................................................................................................ 19-42 19-12 Top Three Industries by Number of Paid Employees in Louisiana Parishes Where Onshore Support Facilities may be Located .................................................... 19-42 19-13 Race and Ethnicity Characteristics of the State of Texas and Texas Counties Where Onshore Support Facilities may be Located ........................................ 19-44 19-14 Economic Characteristics of the State of Texas and Texas Counties Where Onshore Support Facilities may be Located .................................................... 19-45 19-15 Race and Ethnicity Characteristics of the State of Louisiana and Louisiana Parishes Where Onshore Support Facilities may be Located .......................... 19-46 19-16 Economic Characteristics of the State of Louisiana and Louisiana Parishes Where Onshore Support Facilities may be Located ........................................ 19-47 19-17 Race and Ethnicity Characteristics of the State of Mississippi and Mississippi Counties Where Onshore Support Facilities may be Located ......................... 19-48 19-18 Economic Characteristics of the State of Mississippi and Mississippi Counties Where Onshore Support Facilities may be Located ......................... 19-48 19-19 Potential Impacts to Marine and Coastal Resources........................................ 19-54 19-20 E&E Contributors to EIA ................................................................................ 19-70 20-1 Proprietary Information ..................................................................................... 20-1Petrobras America Inc. Page xi

Development Operations Coordination Document Cascade / Chinook Development Project 

## List of Figures

Figure Page

1-1 Location Map....................................................................................................... 1-1 1-2 Phase II Development Plan.................................................................................. 1-6 1-3 Overall Development Plan................................................................................. 1-15 1-4 FPSO Detail ....................................................................................................... 1-16 1-5 Cascade East Drill Center .................................................................................. 1-17 5-1 Casing Program.................................................................................................... 5-3 5-2 Completion Schematic......................................................................................... 5-5 6-1 Bathymetry Map .................................................................................................. 6-7 14-1 Deep Ocean “Mendocino” ................................................................................. 14-2 14-2 Vantage “Dragon Quest” ................................................................................... 14-3 14-3 Illustration of Subsea Facilities Layout ............................................................. 14-4 14-4 Cascade Drill Center.......................................................................................... 14-5 14-5 Potential Terminals Under Consideration.......................................................... 14-9 15-1 Vicinity Map ...................................................................................................... 15-3 19-1 National Park Lands........................................................................................... 19-8 19-2 Coastal Wetlands ............................................................................................. 19-14 19-3 Protected Areas ................................................................................................ 19-17 19-4 Biological Resources ....................................................................................... 19-19 19-6 Gulfmex No 2 Lightering Areas ...................................................................... 19-53Acronyms and Abbreviations, continued

Page xii Petrobras America Inc. Development Operations Coordination Document Cascade / Chinook Development Project 

## Acronyms and Abbreviations

2-D two dimensional 3-D three dimensional ABS American Bureau of Shipping ACAMP Alabama Coastal Area Management Program ACP Area Contingency Plan ADCP acoustic doppler current profiler APD Application to Drill API American Petroleum Institute ATB articulated tug barge BHP BHP Billiton BLS bow loading system BNWA Breton National Wilderness Area BOEM Bureau of Ocean Energy Management BOEMRE Bureau of Ocean Energy Management, Regulation and Enforcement BOP blowout preventer CCA Clean Air Act CCA Clean Caribbean & Americas CCTV closed circuit television CFR Code of Federal Regulations CGA Clean Gulf Associates
CID Confirmation Information Document CITES Convention on International Trade in Endangered Species CMD Coastal Management Division CMI Coastal Marine Institute COC Certificate of Compliance COE Core of Engineers COI Certificate of Inspection CPP controllable pitch propeller CS classification society CSA Continental Shelf Associates CVA certified verification agent CWA Clean Water Act CZMA Coastal Zone Management Act of 1972Acronyms and Abbreviations, continued

Petrobras America Inc. Page xiii Development Operations Coordination Document Cascade / Chinook Development Project DC drilling center Devon Devon Energy Production Company, L.P. DGPS digital geographic positioning system DO dissolved oxygen DOCD Development Operations Coordination Document DoD Department of Defense DP dynamically positioned DWOP Deepwater Operations Plan EA environmental assessment EEZ Exclusive Economic Zone EFH essential fish habitat EIA environmental impact analysis EIS environmental impact statement EP Exploration Plan EPA Environmental Protection Agency ESA Endangered Species Act of 1973 ESP electrical submersible pump FAA Federal Aviation Administration FMP Fishery Management Plan FPSO floating, production, storage and offloading (vessel) FPU floating production unit FRU fast response unit FSHR free standing hybrid riser FSO floating, storage, and offloading (vessel) G&G geological and geophysical GEMS Geoscience Earth and Marine Services, Inc. GIWW Gulf Intercoastal Waterway GLPC Greater Lafourche Port Commission GMFMC Gulf of Mexico Fishery Management Council GoM Gulf of Mexico Gulf Gulf of Mexico GULL gulf lower layer H2S hydrogen sulfide HAPC Habitat Area of Particular Concern HGB Houston-Galveston-Brazoria HMS highly migratory species HPU hydraulic power unit IBT internal bow thrusterAcronyms and Abbreviations, continued

Page xiv Petrobras America Inc. Development Operations Coordination Document Cascade / Chinook Development Project IC intelligent completion IMRR Inspection, Maintenance, Repair, and Replace (Plan) IP individual permit IPF impact producing factor ISO International Standards Organization ITOPF International Tankers Owners Pollution Federation Limited IWOC Intervention and Workover Control LCRP Louisiana Coastal Resources Program LOOP Louisiana Offshore Oil Port MARPOL International Convention for the Prevention of Pollution from Ships MMPA Marine Mammal Protection Act of 1972 MMS Minerals Management Service MODU mobile offshore drilling unit MSA Metropolitan Statistical Area MSFCMA Magnuson-Stevens Fishery Conservation and Management Act MWA Military Warning Areas NAAQS National Ambient Air Quality Standards NEP National Estuary Program NEPA National Environmental Policy Act NERR National Estuarine Research Reserve NMFS National Marine Fisheries Service NOAA National Oceanic and Atmospheric Administration NORM naturally occurring radioactive materials NOW nonhazardous oilfield waste NOx nitrous oxides NPDES GP National Pollutant Discharge Elimination System General Permit NTL Notice to Lessees and Operators NVIC Navigation and Vessel Inspection Circular NWR National Wildlife Refuge OBF oil-based (drilling) fluid OCS Outer Continental Shelf OESD Offloading Emergency Shutdown OIM offshore installation manager OPA 90 Oil Pollution Act of 1990 OSRA Oil Spill Risk Analysis OSRO Oil Spill Response Organization OTC Offshore Technology ConferenceAcronyms and Abbreviations, continued

Petrobras America Inc. Page xv Development Operations Coordination Document Cascade / Chinook Development Project PAH polynuclear aromatic hydrocarbons PAI Petrobras America Inc. PCBs polychlorinated biphenyls PCPT piezo-cone penetrometer tests Petrobras Petróleo Brasileiro S. A. PLET pipeline end termination POM Princeton Ocean Model ppmv parts per million by volume PSD Prevention of Significant Deterioration RCRA Resource Conservation and Recovery Act RMST Reservoir Management Side Track ROC retention on cuttings R-OSRP Regional Oil Spill Response Plan ROV remotely operated vehicle ROW right of way SBF synthetic-based (drilling) fluid SDS stern loading system SOLAS Safety of Life at Sea SOP Suspension of Production SOPEP Shipboard Oil Pollution Emergency Plan SOx sulfur oxides SPM single point mooring TCMP Texas Coastal Management Program TCW well treatment, completion, and/or workover fluids TLP tension leg platform Total TOTAL Exploration and Production USA, Inc. TRW topography Rossby waves TSP total suspended particulates ULCC ultra large crude carrier USCG United States Coast Guard USFWS United States Fish and Wildlife Service VIV vortex induced vibration VLCC very large crude carrier VOC volatile organic compounds WBF water-based (drilling) fluid WCD Worst Case Discharge WR Walker Ridge WTA water test areaAcronyms and Abbreviations, continued

Page xvi Petrobras America Inc. Development Operations Coordination Document Cascade / Chinook Development ProjectPetrobras America Inc. Page 1-1

Development Operations Coordination Document Cascade / Chinook Development Project 

## 1 Introduction and Plan Contents
Introduction
On 12 June 2007, Petrobras America Inc. (PAI) proposed a phased development plan to develop the Cascade and Chinook Units located in the Walker Ridge lease protraction area of the Central Gulf of Mexico Outer Continental Shelf (OCS) Planning Area as shown in Figure 1-1. The office of the Bureau of Ocean Energy Management (BOEM), formerly the Minerals Management Service (MMS) approved the initial DOCD on 30 April 2008.

Figure 1-1 – Location Map1 Introduction and Plan Contents

Page 1-2 Petrobras America Inc. Development Operations Coordination Document Cascade / Chinook Development Project PAI developed this Supplemental DOCD in alignment with 30 CFR 250.241 et seq. and associated NTLs per 30 CFR 250.103, including but not limited to:

 NTL 2008 G 04 (Information Requirements for Exploration Plans and Development Operations Coordination Documents) This NTL supersedes NTL 2006 G 14 and provides additional guidance on information requirements regarding compliance with the provisions of the Endangered Species Act (ESA) and the Marine Mammal Protection Act (MMPA), provides guidance on replacing high-resolution survey lines with 3-D survey data and information for shallow hazards analyses. It also makes minor technical amendments.

 NTL 2009 G 27 (Submitting Exploration Plans and Development Operations Coordination Documents) This NTL supersedes NTL 2007 G 11 and clarifies the policy regarding revising OCS plans when you propose to change approved anchor patterns or anchor areas, provides guidance for wells planned for sidetrack, makes minor administrative changes and includes a guidance document
statement.

 NTL 2010 N 06 (Information Requirements for Exploration Plans, Development and Production Plans and Development Operations Coordination Documents on the OCS) This NTL rescinds the limitations set forth in NTL 2008 G 04 regarding a blowout scenario and worst case discharge scenario and provides national guidance to Lessees and Operators regarding the content of the information BOEM requires in blowout scenario and worst case discharge scenario descriptions. See Section 9 for detailed information.

Lease Background
On July 31, 2006, the BOEM approved both the Cascade Unit Agreement and the Chinook Unit Agreement and assigned Unit Agreement Numbers 754306012 and 754306013 respectively.
The Walker Ridge Block 206 Unit (Cascade) is located approximately 165 miles from the Louisiana coastline and approximately 285 miles from the Texas coastline in ultra deepwater (approximately 8,200 feet). Cascade is a 23,000 acre unit consisting of the following blocks and leases:1 Introduction and Plan Contents

Petrobras America Inc. Page 1-3 Development Operations Coordination Document Cascade / Chinook Development Project  Walker Ridge Block 205, Lease OCS-G 16964

 Walker Ridge Block 206, Lease OCS-G 16965

 Walker Ridge Block 249, Lease OCS-G 16969

 Walker Ridge Block 250, Lease OCS-G 16970

The Walker Ridge Block 425 Unit (Chinook) is located approximately 15 miles south of Cascade. Chinook is a 23,000 acre unit consisting of the following blocks and leases:

 Walker Ridge Block 425, Lease OCS-G 16987

 Walker Ridge Block 426, Lease OCS-G 16988

 Walker Ridge Block 469, Lease OSC-G 16997

 Walker Ridge Block 470, Lease OCS-G 16998

Information regarding ownership and Operatorship of the Cascade and Chinook Units is described below.

Cascade Unit : Petrobras America Inc. (Operator)* 100%

Chinook Unit : Petrobras America Inc. (Operator) 66.67% TOTAL Exploration and Production USA, Inc. 33.33%
* Devon Energy Inc. (i.e. Devon) and PAI each had 50% ownership at the time of the initial DOCD
BOEM approved an initial Suspension of Production (SOP) for the Cascade and Chinook Units from August 1, 2006 through November 30, 2007. Subsequent to the original SOP, there have been various extensions / revisions as the work progressed. At present, the Cascade Unit is held by an SOP through the end of October 2011 as PAI expects to initiate lease hold operations with the Pride “Deep Ocean Mendocino” to drill and complete for production, the Cascade East Development Well No. 5, (additional details to follow in this section). The Chinook Unit is currently held under an SOP through December 2011 as repairs are facilitated on one of the dual Chinook pipeline risers. The most current SOP and approved activity schedule is included in Appendix 1.1 Introduction and Plan Contents

Page 1-4 Petrobras America Inc. Development Operations Coordination Document Cascade / Chinook Development Project Field Development Strategy
Based upon experience and the unknowns associated with the tertiary area of the GoM, PAI has implemented a phased development plan for the Cascade / Chinook Development Project and this strategy remains consistent with previously submitted information.
The Conceptual Plan for the Cascade / Chinook Development Project was submitted to the BOEM on September 25, 2006, and was approved by BOEM on November 29, 2006. The Deep Water Operations Plan (DWOP) was submitted to BOEM on 15 May 2007 with subsequent revisions provided on 24 March 2009. The approval by BOEM provided to PAI via letter dated 18 August 2009 is provided in Appendix 1a and authorizes the utilization of a Floating Production, Storage, and Offloading (FPSO) facility and six other new technologies proposed. See Section 1(f) for a listing of those new technologies.
The FPSO, B.W. Pioneer is the first FPSO to be utilized in the U.S. GoM. The vessel arrived on location and attached to the buoy in October 2010. Efforts are ongoing to complete all final installation and commissioning activities to provide for first oil production from the Cascade Unit- by end of fourth quarter 2011.
Phase I of the development strategy proposed three wells to be drilled and completed for production to the FPSO in the initial DOCD. One well would provide production from the Chinook Unit and two wells would feed production to the FPSO from the Cascade Unit. Phase II would be supported with supplemental DOCD(s) for additional wells as needed to properly conserve and produce the resources of the two fields and Phase III would then follow for additional infrastructure and additional wells if / or as needed.
A supplemental DOCD initiating Phase II was submitted to BOEM under separate cover on 19 July 2011, proposing three additional wells in the Chinook Unit.
Supplemental DOCD Scope
The scope of this Supplemental DOCD is the continuation of Phase II operations and the information provided herein is for two additional wells (Cascade East Development Wells No. 6 and No. 7) to be drilled, completed and produced to the FPSO. Once completed, two (2) well jumpers, one from each well head to the existing manifold will be installed. As future phases of the development plan continue to mature, PAI will submit supplements as appropriate to cover activities and applicable changes.
The topsides and subsea facilities designed and installed to accommodate production from both units are sufficiently described in the initial DOCD, Conceptual Plan and DWOP and will not be addressed in detail within this Supplemental DOCD.1 Introduction and Plan Contents

Petrobras America Inc. Page 1-5 Development Operations Coordination Document Cascade / Chinook Development Project Phase 1 – Executive Summary

As anticipated in the Initial DOCD, PAI temporarily transferred operatorship of aliquot portions of the Cascade Unit to Devon to drill and complete the Cascade wells. PAI drilled and completed the initial Chinook well.

Under the Initial DOCD Devon drilled and temporarily abandoned Cascade West Development Well No. 3in WR 249 as non-productive. Devon then drilled Cascade East Development Well No. 4 and completed successfully. Following BOEM naming nomenclature this well became WR 250, Well CA 003 in BOEM records. This replacement well was drilled and completed from a surface location being approximately 2123 feet south and 397 feet east from the surface location proposed initially since the surface location was provided for in a previously approved exploration plan (by the original operator, BHP Billiton). PAI submitted a revised plan (R5131) which has subsequently been approved by BOEM to commence production from WR 250 Well CA 003 under the approved Initial DOCD.

Rig availability and contract timing allowed Devon to initiate the drilling of a replacement well for the unsuccessful Cascade West Development Well No. 3 (WR 249, Well No. 1, OCS G 16969). The Cascade East Development Well No. 5 (permitted as the Walker Ridge 206 No. 004) location is within 100’ of the successful CA003 and utilizes a surface location cleared under the previously approved Exploration Plan obtained by BHP Billiton. Devon initiated this well by drilling and setting surface casing to approximately 12,000 feet and PAI is currently completing the drilling and completion operations on this well which essentially completes the operations planned for Phase I of the development plan.

Operatorship of the Cascade unit was transferred back to PAI in July 2010. Additionally, Devon divested operations in the GoM in 2010 and PAI exercised option of first right of refusal retaining Devon’s 50% share of ownership. PAI currently maintains 100% ownership of the Cascade Unit and operates both Cascade and Chinook Units as earlier referenced.

This Supplemental DOCD is consistent with Phase II of the development plan in that PAI intends to utilize the proposed Cascade East Development Wells No. 6 and 7 to enhance to capacity, production from the Cascade east drill center. Any additional wells in the Cascade Unit will require an additional drill center.1 Introduction and Plan Contents

Page 1-6 Petrobras America Inc. Development Operations Coordination Document Cascade / Chinook Development Project See Figure 1-2 below for a conceptual representation of the Phase II development plan.

Figure 1-2 – Phase II Development Plan

The produced fluids from all wells in the Cascade and Chinook Units will be transported to a common FPSO, the B.W. Pioneer, in WR Block 249 through infield flowlines and four production Free Standing Hybrid Risers (FSHRs). The subsea architecture (including trees, manifolds, booster pumps, PLETs, umbilicals, flying leads, jumpers, etc.) is consistent with existing subsea facilities in the GoM with the exception of the subsea booster pumps which will be used to enhance production when reservoir pressures decrease over time. To date, all installation of the subsea architecture is complete with the exception of the subsea booster pumps and the Chinook No.1 riser. PAI does not anticipate needing the booster pumps for initial production but expects the need for boosting to occur as early as six to nine months after initial production thus, the pump bases are installed as part of the initial installation package with the actual pump cartridges planned to be installed early in 2012.
Produced oil will be separated, treated, measured, and temporarily stored on the FPSO prior to transportation to market. The usable capacity of the cargo tanks on the FPSO is approximately 600,000 barrels. The FPSO is connected to a disconnectable mooring system which will allow it to disconnect and motor away from named storms and1 Introduction and Plan Contents

Petrobras America Inc. Page 1-7 Development Operations Coordination Document Cascade / Chinook Development Project hurricanes under her own power, returning for re-connection when it is safe to do so. Oil transportation to market will be achieved through the use of two dedicated Shuttle Vessels (Tankers) that PAI has under charter. After production ramp-up, it is anticipated that the FPSO will offload oil to a Shuttle Vessel approximately once a week and the Shuttle Vessel will transport the product to the terminals of choice along the GoM, potentially including terminals in Texas, Louisiana and Mississippi.
Gas which is not used to power equipment on the FPSO will be exported to market via a gas export FSHR and a gas export pipeline, Segment No. 16130, which is tied into an existing facility (Discovery Pipeline) via subsea-tie-in located in Green Canyon Area, Block 598.
It is anticipated that FPSO production operations associated with Phase II wells shall cover 6-8 year duration. Production from these wells is expected to continue in subsequent phases, although such production is not described in this DOCD.
During the first two phases of production operations, PAI will assess the productivity of the Cascade and Chinook reservoirs and will further define the development plans for future phases. As previously mentioned, PAI will supplement the DOCD and other pertinent regulatory deliverables (e.g. DWOP) as appropriate to cover activities associated with future development phases when more information becomes available.
The background on the Use of FPSOs in the GoM is covered extensively in the Initial DOCD and is not the subject of this supplement however; PAI confirms that all applicable regulations and requirements have been complied with or shall be met prior to first production



### 1(a) Plan Information Form (MMS-137) (PROPRIETARY) See completed Form MMS-137(s) on following pages.1 Introduction and Plan Contents

Page 1-8 Petrobras America Inc. Development Operations Coordination Document Cascade / Chinook Development Project