The role of ANP in promoting the technological development of the Brazilian oil, gas and biofuel industry

Size: px

Start display at page:

Download "The role of ANP in promoting the technological development of the Brazilian oil, gas and biofuel industry"

Brian Allison
7 years ago
Views:

1 NATIONAL AGENCY for OIL, NATURAL GAS and BIOFUELS The role of ANP in promoting the technological development of the Brazilian oil, gas and biofuel industry Luciana Tavares S. Almeida Specialist in Regulation April, 2007 Rio de Janeiro

2 R&D fostered by ANP Law LAW ATTRIBUTION Art. 8º - The purpose of ANP is to promote regulatory measures, contracting and monitoring economic activities inherent to the oil, gas and biofuels industries, being responsible for: (Wording of Law no , 2005) X - Fostering the research and development of new technologies for exploration, production, transport, refining and processing;

3 Government Participation Concession Contracts for Exploration and Production of Oil and Gas (since 1998) The Concessionaire must pay for Government Participation, in addition to taxes and financial compensations provided by Brazilian legislation. i) Signature Bonus; ii) Royalties; iii) Special Participation; iv) Payment for Occupation or Retention of a given Area.

4 Special Participation Companies that produce oil from fields which have HIGH RENTABILITY OR OUTPUT have to pay special participation The Special Participation will be calculated quarterly and will be levied on Net Production Revenue for each individual field.

5 Investments in Research, Development and Innovation Clause of R&D Investments In case a field has to pay Special Participation (SP) on any given trimester of the year, the concessionaire will be required to undertake commitments to research and development (R&D) in the amount of 1% (one percent) of the gross revenue from such field.

6 Investment Incentive The invested values CAN BE deduced from the calculation of the Special Participation (SP) Administrative Rule ANP nº 10/1999 Administrative Rule ANP nº 58/2001

7 R&D investments ACCOMPLISHMENT OF THE EXPENDITURES Up to 50% Company s own R&D facilities within Brazil and others organizations Minimum of 50% Collaboration with universities and/or national R&D institutions accreditated at ANP R&D investments made in excess of the minimum in any year may be credited against obligations in later years.

8 Resolutions and Regulations ANP RESOLUTION nº 33/05 Technical regulation nº 5/2005 THOSE RESOLUTIONS Technical guidance on how to accomplish the required research and development investments and how to elaborate HAVE the expenditures COME INTO report. EFFECT IN 2005 ANP RESOLUTION nº 34/05 Technical regulation nº 6/2005 The accreditation of R&D institutions at ANP

9 Technological Department - CTC CT Petro CTC PRH R&D investments Accreditation Scholarships National R&D institutions Pre - authorization Controlling

10 CT Petro CT Petro is a national program of science and technology for the oil sector Objectives To stimulate 1. The innovation in the productive process; 2. The formation and qualification of human resources; 3. The development of technological projects.

11 CT Petro Companies Universities Production Productivity Costs Prices Product quality The CT Petro Resources come from the Royalties In Brazil, royalties range from 5% to 10% of gross production When this number exceeds 5%, 25% of the exceeding part will be directed to CT Petro

12 CT Petro - Resources Values transferred to CT Petro ( million) 344,2 millions Million Year ,7 ( Jan-Mar)

13 Technological Department - CTC CT petro CTC PRH R&D investments Accreditation Scholarships National R&D institutions Pre - authorization Controlling

14 THE GOALS To generate knowledge: create new technologies in products and processes; To create centers of excellence for the technological development of the oil, gas and biofuel sector; To promote technological development of the national industry supply chain; To contribute to the formation of highly qualified professionals.

15 Requirements for the Expenditures Technological Projects and/or Programs Basic and applied research; Experimental development (including prototype and pilot unit); Suppliers Qualification - (including manufacture pilot - project of industrial development).

16 Investment obligations 1% (one percent) of the gross revenues from fields that pay Special Participation (SP) millions millions millions millions (estimated)

17 Investment Processes Pre-authorization

18 Accreditated National R&D Institutions No Pre-Authorization required general rule Technological services, projects and/or programs of basic and applied research and/or experimental development; Construction and installation of prototypes and pilot units.

19 Accreditated National R&D Institutions Pre-Authorization Technological management of programs/projects; Programs of human resources formation; Laboratorial infrastructure; Basic industrial technology; Energy (biofuels).

20 Authorized Projects PNQP Human resources qualification Authorized investment: 57 millions 222 authorized projects Investment: 178 millions Laboratorial infrastructure (211 projects) 74,9%

21 Projects / Area Authorized Areas Nº Cost % ( Million) Exploration 22 22,5 12,7 Production 56 50,7 28,4 Supply 62 44,0 24,7 Gas/Energy 49 16,0 8,9 Management/Innovation Centers Others Total ,1 0,8 42,5 23,8 1,2 0,

22 OBRIGADA! AGÊNCIA NACIONAL DO PETRÓLEO, GÁS NATURAL E BIOCOMBUSTÍVEIS Av. Rio Branco, 65 13º andar Centro Rio de Janeiro RJ Brasil Tel.: cst@anp.gov.br

23 Special participation is calculated on the basis of: 1. amounts produced 2. extraction location 3. number of years of production

24 Government Participation i. Signature Bonus The bonuses were defined according to methodology defined within ANP jurisdiction. ii. Royalties are 10% (ten percent) of gross production, which can be reduced by the ANP, down to 5% (five percent), taking into consideration the geological risks present, the production forecast and other relevant factors (such as production in remote areas, non-associated gas and heavy oil). iii. The Special Participation iv. Payments for occupation or retention of areas - depends on the sector, the exploratory phase and the exploratory period.

25 PNQP is program of human resources qualification that is part of PROMINP. PROMINP Is a program to maximize the participation of the Brazilian industry in a competitive and sustainable base in oil and gas projects in Brazil and abroad.

Rules of Human Resources Programs. (PRH-ANP, R&D Clause, SwB)

Rules of Human Resources Programs (PRH-ANP, R&D Clause, SwB) Challenges of a rapidly expanding petroleum industry Elias Ramos de Souza Superintendent for Planning and Research (Brazilian) National Petroleum