Focus on Brazil Frederic Delormel, Senior Vice President, Brazil March 30, 2010
Petrobras Production objectives Petrobras Oil & Gas production (1,000x boe/d) 5,729 632 Worldwide 3,655 341 In Brazil 2,003 189 2,301 236 2,400 224 2,525 238 3,314 5,097 1,814 2,065 2,176 2,287 1,183 Pre-Salt 152 Average 2001-2006 2007 2008 2009 2013 2020 Source: Petrobras, Technip 2
E&P Brazil: Significant Investment Forecast Petrobras E&P Investment 2009-2013 US$ 105 billion Pre-Salt Investment 2009-2020 US$ 111 billion Petrobras Non Pre-Salt Investment 2 Espirito Santo 72% 28% 80 Petrobras Pre-Salt Investment 11 18 2009-2013 2014-2020 Santos Basin Source: Petrobras Business Plan 2009-2013 3
Pre-salt: huge potential in a complex environment Estimated reserves: up to 100 bn Barrels (1) Production target 2020: 1,815 thousand bpd (2) Petrobras Capex to 2020: $111 billion Salt Source: Courtesy of Petrobras (1) Source: Brazilian National Petroleum Agency (ANP) (2) Including production of Petrobras partners Deep: >2,500 meters Corrosive: High CO 2 content (up to 30%) Remote: >300km from the coast 4
Floating and Subsea technology options FPSO Riser Subsea Wells Flowline Gas Export 5
including Floating LNG FPSO FLNG Riser Gas Export Subsea Wells Flowline Gas Export 6
Where Technip can play a role FPSO: Standardisation - 8 Units Eng. & procurement FLNG = Design Competition Eng. & procurement & modules assembling Riser = Flex or Rigid? Tupi Pilot = Flexible Iara/Guara = Design Competition Eng. & manufacturing & installation Gas Export = Flex Eng. & manufacturing & installation or Subsea Wells Flowline = Flexible Eng. & manufacturing & installation Gas Export = Rigid Engineering & Installation 7
Petrobras needs: Technip s responses Local content Local resources People Plants Vessels Logistics Technology Differentiating technologies R&D Technology Transfer Execution Execution Model Vertical Integration Experience Reactivity Repeatability 8
Technip: long-standing presence in Brazil History in Brazil 1977: Garoupa 100m water depth Coflexip - First flexible pipe installed in Brazil Technip Designed the Garoupa platform 20 Engineers in Rio 2007: Roncador 1,800m water depth Technip: - P-52 Platform - Subsea System -PDET >2,000 people in Rio, Vitoria and Macae Vitoria Rio Port of Angra Brésil Technip in Brazil: 2,300 employees Operations Flexible: #1 local supplier Plant set up in 1986 3 Vessels in Operation Rigid Pipelay: Industry firsts in Brazil Free Standing Hybrid Riser Pipe In Pipe Offshore platforms: Track record with Petrobras (P51/P52/P56) P58/ P62 Engineering 9
Technip: investing in critical logistics Local Resources Tupi - Gas Export Project Port of Angra 80,000 tons of pipe stored Subsea Structures Assembly 6 vessels mobilised Located front of Pre-Salt Fields Area of 78,000 square meters 350 meters berth Channel Access (10 meters) 10
Technip: investing in critical resources Local Resources 1 st Flexilay Vessel with Brazilian Flag: Skandi Vitoria Enabled Flexible Solution for ultra deepwater Critical to fleet development in Brazil State-of-the-art spiraling machine: SP 20 Ultra deepwater applications High resistance to collapse 20 flexible pipe 11
Technip: investing in dedicated on-site R&D Critical Resources Technology Local R&D capabilities R&D Facilities: (e.g. Hyperbaric test facilities) Parque Technologico (Petrobras) Knowledge transfer/sharing Focus on Strategic Topics FLNG Riser Monitoring Systems Resistance to Collapse Handling of highly corrosive fluids Innovative Installation methods 12
Vertical integration for seamless execution Execution Model 1 R&D Engineering 2 Ultra deepwater Program Sour Services Flow assurance Product Qualification Product Optimization 4 3 Logistics & Installation Manufacturing Critical Interface Fabrication - Installation Logistic bases 3 Vessels in Operation First Flexilay Vessel with Brazilian Flag (Skandi Vitoria) 25 years of local experience Most advanced products for ultra deepwater 13
Strong project experience: 4 major EPCI in 4 years Execution Model 2007: PDET Project 2008: Canapu 18 Deepwater Export Pipeline (57 km) First Free Standing Hybrid Riser First Deep Blue project in Brazil (J-Lay) First cooperation Technip USA-Technip Brazil Technip USA - Technip Brazil First Pipe-in-Pipe in Brazil Reeled Technology Deep Blue + Mobile Spoolbase 2009: Cascade Chinook (USA) Technip USA - Technip Brazil First project for Petrobras in US Gulf Installation of 5 Free Standing Hybrid Risers (Deep Blue) 2010: Tupi Gas Export Joint Venture Technip- Allseas 18 Export Pipeline (250 km) Angra Port as main Project Hub 14
Conclusion Huge opportunity for Technip in Brazil Oil & Gas development Local organisation built around Petrobras needs More than 25 years of continuous investment in local content Ready to meet pre-salt technological challenges 15
Thank you Frederic Delormel, Senior Vice President, Brazil March 30, 2010