Petrobras Business and Management Plan & Brazilian Local Content Regulation. Rio de Janeiro 11 th March 2013

Transcription

1 Petrobras Business and Management Plan & Brazilian Local Content Regulation Rio de Janeiro 11 th March 2013

2 Petrobras Business and Management Plan Brazilian Local Content Regulation

3 Petrobras Business and Management Plan Brazilian Local Content Regulation

4 Petrobras Business and Management Plan

5 Petrobras Business and Management Plan

6 Petrobras Business and Management Plan

7 Petrobras Business and Management Plan

8 Petrobras Business and Management Plan Investments in the Country driven to the Shipbuilding and Offshore Industry: US$ billion 83.6 (64%) Exploration and Production US$ billion 89.9 (68%) 25.4 (19%) 21.1 (16%) 16.3 (12%) Refining, Transportation and Commercialization 15.2 (21%) 2.9 (4%) 5.6 (8%) US$ 71.6 billion 3.5 (5%) 1.0 (1%) 31.2 (44%) US$ bi 12.1 (17%) Production Development Exploration Infrastructure and Support Expansion of Refining Park Operational improvement Compliance with Internal Market Allocation of National Oil Expansion of Fleet Petrochemicals Biofuels

9 Construction of 132 Units: Drilling Rigs, Stationary Production Units (SPU) and Tankers Priority: OIL PRODUCTION, Brazil: mbpd Oil and NGL Production Curve (mbpd) 38 SPU by 2020: 65% < Local Content < 80% 45 Rigs by 2020: 15 without local content 30 with 55% < Local Content < 70% 49 Tankers by 2020: 65% < Local Content < 74% 1 Tanker 2,022 (1 unit 2/2 SPU 10/10 4/4 2/2 Rigs 3/3 Tankers (21 units delivered) 1/5 SPU 1/1 Rig 3 Tankers (2 units delivered and 7 to be delivered) 4 SPU 8 Tankers 1 SPU 8 Tankers SPU 7 Rigs 8 Tankers SPU 7 Rigs 5 Tankers 7 SPU 5 Rigs 2 Tankers 3 SPU 7 Rigs 5 Tankers delivered) (9) (12) (9) (23) (20) (15) (17) (10) 2 SPU 2 Rigs 6 Tankers 4.200

10 38 Stationary Production Units (SPU): Oil Production, Brazil: mbpd Oil and NGL Production Curve (mbpd) Cid. Anchieta (Baleia Azul) Cid. Itajaí (Baúna e Piracaba) Cid. São Paulo (Piloto de Sapinhoá) Cid. Paraty (Piloto de Lula NE) P-61 P-63 (Papa- Terra) P-55 (Roncador mod. III) P-58 (Norte Pq. Baleias) P-62 (Roncador mod. IV) Cid. Ilhabela (Sapinhoá Norte) Cid. Mangaratiba (Iracema Sul) Z1 Iracema Norte P-66 (Lula Alto) P-67 (Lula Central) P-68 (Lula Sul) P-74 (Franco 1) Z2 (Carioca) P-69 (Lula Norte) P-75 (Franco 2) P-70 (Lula Ext. Sul) P-71 (Iara Horst) P-76 (NE Tupi) Afretada (Carimbé) Aruanã P-72 (Iara NW) P-77 (Franco 3) CO5 (Franco 4) CO6 (Sul de Guará) Júpiter P-73 (Carcará) Sul Pq. Baleias CO7 (Franco 5) Espadarte I Maromba Bonito CO8 (Entorno de Iara) Espadarte III CO9 (Florim) ,022 SPU Construction 19 by by

11 45 New Drilling Rigs: Oil and NGL Production Curve (mbpd) 2,022 Pacific Mistral (PAD Iracema Norte) Schahin Amazonia (Perfuração Iguape) Schahin Cerrado (PAD Júpiter Nordeste) Ocean Rig Mykonos (ADR LL Central) Etesco Takatsugu J (Franco SW) P-59** (Peroá) Ocean Rig Corcovado (Iracema Alto) Deepsea Metro II (Farfan Bloco BM- SEAL-11) Schaihn Sertão (Roncador) Sevan Brasil (Sagitário) Odn Delba III (PAD Trachemys Quelônio) P-60** (Bloco BM-C-27) Amaralina Star (CO Sul de Tupi) Odn I - Norbe X (CO PAD Franco) Odn II - Norbe XI (CO Florim) Odn Tay IV (RF de Albacora) Oil Production, Brazil: mbpd Laguna Star (CO PAD Franco) Rigs Construction Arpoador (Lula Norte) Copacabana (Franco NE) Urca (Franco Leste) Guarapari (NE de Tupi) Ondina (Iara Horst) Cassino (Lula Norte) Grumari (Carcará 1) Frade (Júpiter) Camburi (Sul de Guará) Pituba (Iara NW) Ipanema (Júpiter) Bracuhy (Carcará) Itaoca (Iara NW) Curumim (Exploration) 25 by by 2020 Mangaratiba (Florim) Itaunas (Exploration) Interlagos (Exploration) Marambaia Leblon (Entorno de (Franco Leste) Iara) Portogalo Botinas (Entorno de (Florim) Iara) Itapema Salinas (Iara NW) (Exploration) Siri Boipeba (Exploration) (Exploration) Leme (Franco Leste) Drillship (33) Comandatuba (Exploration) Sahy (Exploration) Semi Submersible(10) Self Lift (2) * Being negotiated; ** P-59 and P-60 were constructed in Brazil

12 49 Tankers: Oil and NGL Production Curve (mbpd) Celso Furtado (Products 1/4) João Cândido (Suezmax 1/10) Sérgio Buarque de Holnda (Products 2/4) Rômulo Almeida (Products 3/4) Oil Production, Brazil: mbpd Zumbi dos Palmares (Suezmax 2/10) José Alencar (Products 4/4) Suezmax 3/10 Suezmax 4/10 Panamax 1/4 Panamax 2/4 Suezmax 5/10 Gaseiro 1/8 Promar Panamax 3/4 Suezmax 6/10 Gaseiro 2/8 Promar Suezmax 7/10 Panamax 4/4 Gaseiro 3/8 Promar Suezmax 8/10 Produtos 1/3 Gaseiros 4/8 Promar Produtos 2/3 Gaseiros 5/8 Promar Gaseiro 6/8 Promar Suezmax 9/10 Products 3/3 Gaseiro 7/8 Promar Products 1/5 Suezmax 10/10 Gaseiro 8/8 Promar Products 2/ Aframax 1/5 Products 3/5 Products 4/5 Aframax 2/5 Products 5/5 Aframax 3/5 Aframax 4/5 Aframax 5/5 Suezmax DP 1/4 Suezmax DP 2/4 Suezmax DP 3/4 Bunker 1/3 Superpesa Suezmax DP 4/4 Bunker 2/3 Superpesa Aframax DP 1/3 Aframax DP 2/3 Bunker 3/3 Superpesa Aframax DP 3/ ,022 Tankers Construction 31 by by

13 Petrobras Business and Management Plan

14 Petrobras Business and Management Plan

15 Petrobras Business and Management Plan Northeast Refinery (RNEST): 1st Phase in November/14 Northeast Refinery (RNEST): Construction of a new refinery in the Suape industrial complex, in the Pernambuco State, to process 230 kbpd of oil. RNEST will be the operational unit with the greatest conversion rate of crude oil into diesel (70%) LOCAL CONTENT Target: 75% Actual: 90%

16 Petrobras Business and Management Plan Capacity: 165 thousand bpd Solomon Complexity: 11,2 Diesel 10 ppm Yeld: 43% QAV Yeld: 16% Physical Progress Achieved: 35% Start Date (1st Train): April of 2015

17 Petrobras Business and Management Plan Brazilian Local Content Regulation

18 Why Local Content? For the Country Potential Gains For the Oil Companies Employment and Income Generation Operating Costs Reduction Local Economy Diversification Sustainable Economic Growth Increase Country s Attractiveness for Investors Local Content Proximity between Suppliers and the Operation Reduced Dependence on Expatriated Workforce Suppliers Innovation Capacity Increased Local Productive Capacity Development Logistic Risks Reduction Tax Revenue Increase Local Technical Assistance Availability

19 Brazilian Local Content Regulation Requirement in the Concession - Agreement with ANP ANP National Petroleum Agency (linked to Mines and Energy Ministry) ANP s role Regulate Brazilian Oil Industry, including Managing Oil Field Bidding Rounds; Managing local content (minimum requirements, monitoring, auditing and penalties application) Before 1998 Petrobras Monopoly 1998 Round zero, no Local Content Commitment ANP Oil Field Concession Bidding Rounds st to 4 th Round: Minimum Local Content requirements determined by ANP; Proof of local content by Declaration of Origin and Invoice; 5 th and 6 th Rounds: Minimum Local Content requirements determined by ANP, according to: o phase (exploration / development) o block type (deep water, shallow water, onshore); Proof of local content by Declaration of Origin and Invoice; 7 th to 10 th Round: Minimum and Maximum Local Content requirements determined by ANP, according to phase and block type; o Detailed requirements (by system, equipment and service); Change of methodology for local content measurement (Local Content Booklet) ; Mandatory Local content Certification by third part entity;

20 Brazilian Local Content Regulation Requirement in the Concession - Agreement with ANP ANP National Petroleum Agency (linked to Mines and Energy Ministry) ANP s role Regulate Brazilian Oil Industry, including Managing Oil Field Bidding Rounds; Managing local content (minimum requirements, monitoring, auditing and penalties application) Before 1998 Petrobras Monopoly 1998 Round zero, no Local Content Commitment ANP Oil Field Concession Bidding Rounds st to 4 th Round: Minimum Local Content requirements determined by ANP; Proof of local content by Declaration of Origin and Invoice; 5 th and 6 th Rounds: Minimum Local Content requirements determined by ANP, according to: Petrobras criteria for measuring and requiring local content for all contracts o phase (exploration / development) (E&P, Downstrean, Gas & Energy) o block type (deep water, shallow water, onshore); independent of obligation with ANP Proof of local content by Declaration of Origin and Invoice; 7 th to 10 th Round: Minimum and Maximum Local Content requirements determined by ANP, according to phase and block type; o Detailed requirements (by system, equipment and service); Change of methodology for local content measurement (Local Content Booklet) ; Mandatory Local content Certification by third part entity;

21 Source: ANP Brazilian Local Content Regulation Detailed Local Content Requirements Example of Local Content requirements by item and subitem Subsystem Item Subitem % LC I.1 Drilling Rig Chartering 50 I.2 Drilling + Completion 49 I.2.1 Wellhead 60 I.2.2 Cas ing 50 I.2.3 Production Tube 50 I - Drilling, Assessment and Completion I.2.4 Well equipment 50 I.2.5 Drill 5 I.3 Auxiliary Systems 40 I.3.1 Electric Sys tem 60 I.3.2 Automation Sys tem 60 I.3.3 Telecommunication Sys tem 40 I.3.4 Fis cal Measurement System 60 I.3.5 Field Ins trumentation 40 I.4 Logis tic Support 50 I.5 Chris tmas Tree 70 Subsystem Item Subitem % LC II.1 Umbilicals 55 II.2 Manifolds 70 II.3 Flexible Production/Injection Lines 56 II Production Collection System II.4 Rigid Production/Injection Lines 50 II.5 Flowlines 100 II.6 Underwater Control System 0 II.7 Bas ic Engineering 50 II.8 Detailed Engineering 95 II.9 Management, Cons truction and As sembly 80 Subsystem Item Subitem % LC III.1 Basic Engineering 65 III.2 Detailed Engineering 65 III.3 Management, Construction and Assembly 65 III.4 Hull 70 III.5 Jacket n/d III.6 Naval Systems 65 III.7 Simple Anchoring Systems 65 III.8 Multiple Anchoring Systems 65 III.9 Modules Integration 65 III.10 Pre-Installation and Hook-up of Anchoring Line 65 III.11 Plants - Basic Engineering 65 III.12 Plants - Detailed Engineering 65 III.13 Plants - Service Management 65 III.14 Plants - Equipment and Materials 71 III Pressure Vessels 85 III Forges 80 III Tanks 90 III - SPU III Process Towers 85 III Cooling Towers 85 III Heat Exchangers 15 III Pumps 70 III Steam Turbines 80 III Rotary Screw Air Compressors 70 III Alternative Compressors 70 III Diesel Engines (up to 6 HP) 80 III Valves (Up to 24") 90 III Filters 85 III Flare System 80 III Cathodic Protection 90 III Electric System 60 III Automation System 60 III Telecommunication System 40 III Fiscal Measurement System 60 III Field Instrumentation 40 III.15 Plants - Construction and Assembly 65 Specific and challenging local content requirements for equipment such as christmas tree, manifolds, valves, pumps, compressors, heat exchangers, filters, pressure vessels, flare system, automation & instrumentation,...

22 Brazilian Local Content Regulation Local Content Booklet ( Cartilha ) Main Concept The Cartilha (booklet) is the official methodology for measuring local content, published by the ANP in 2005; It aims to identify the source of manufacture of components that make up each piece of equipment and service; The calculation is separated into: Local Content of goods Local Content of Services Local Content of goods for temporal use, Local Content of systems and sub -systems For the booklet, an item is not simply "national, but has "x%" Local Content. Goods (%) = 1- cost imported inputs x 100 selling price of good without taxes Services (%) = cost of skilled local labor force x 100 total cost of manpower *Source: Cartilha de Conteúdo Local

23 Brazilian Local Content Regulation Certification Process Certification required throughout the supply chain ILLUSTRATIVE Sub-Suppliers Suppliers EPC Price: US$ 10 MM LC=30% -> Local Parcel: US$ 10 MM * 30% = U$ 3 MM Contribution Margin: 10 MM/19 MM = 53% Price: US$ 7 MM LC=30% -> LP: US$ 2.1 MM CM=37% Price: US$ 2 MM LC=70% -> LP: US$ 1.4 MM CM=10% Compressor Motocompressor Panel INV + LCC INV + LCC INV + LCC Vapor Recovery Unit Injection Gas Compression Unit LC= 34,2% Filters Package INV + LCC INV + LCC INV + LCC Goods Unit Total Price = US$ 19 MM Local Parcel Total = US 6.5 MM Unit LC: Local Parcel Total / Unit Total Price = 6.5/19 = 34,2% Platform INV + LCC INVOICE + LOCAL CONTENT CERTIFICATE Contribution Margin = Equipment Price / Unit Total Price The percentage of local content is calculated based on the imported quota of the item; Thus, it is not necessary that the suppliers/epc inform their profit margin; Moreover, there are confidentiality clauses between the certifying entity and suppliers/epc

24 Petrobras Local Content Policy

25 Petrobras Local Content Policy PETROBRAS LOCAL CONTENT POLICY The projects and acquisitions for Petrobras must support the challenges of Company s Strategic Plan and therefore maximize local content based on competitive and sustainable basis, accelerating the development of markets where it operates, guided by ethics and generating continued innovation. December 22 nd, 2011

26 Petrobras Local Content Policy Capital Discipline Ensure adherence to capital discipline, assuring the competitiveness of procurement and reducing financial and logistical risks in implementation and operation of projects. Integration of Supply Execute procurement in a coordinated manner for the items of common use. DRIVERS Local Content Standardization in Petrobras Local Suppliers Uniform criteria for measuring and requiring local content in Petrobras acquisitions. Encourage the development of local markets in a sustainable manner. National Engineering Prioritize supplies with local engineering development. Technology Gaps Encourage the development of the local market to overcome technology gaps. 26

27 Petrobras Local Content Policy Contract Requirement with ANP Petrobras Local Content Policy determines that all business areas must achieve minimum local content on its activities Upstream Local content requirements established in oil field concession contracts Refining Local content requirements set by Petrobras according to the list of goods and services demanded by investments project and local industry capacity to provide them Gas & Energy Local content requirements set by Petrobras according to the list of goods and services demanded by investments project and local industry capacity to provide them

28 Prominp O&G Brazilian Industry Mobilization Program PROMINP O&G Brazilian Industry Mobilization Program Objective Maximize goods and services national industrycontent, within competitive andsustainablebases, in the implementation of oil and gas projects in Brazil and abroad.

29 Prominp O&G Brazilian Industry Mobilization Program Technological Center of Shipbuilding and Industrial Assembly What exists? aware of the problems and possible solutions Industry Challenges solutions incorporation by companies What we need? Implementation Instrument of mapped solutions in companies Technological Center of Shipbuilding and Industrial Assembly Technological Center Objectives 1. Prospect, generate and provide technological solutions in the state of the art 2. Provide technological services to companies in the implementation of solutions available 3. Be the repository of knowledge and experience accumulated 4. Qualificate professionals specialized in technological solutions available

30 Thank you! Paulo Alonso