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How to do Business in Brazil? A Brief Summary about the Ocean Economy
Agenda Brazil Ocean Economy Oil & Gás Industry Shipbuilding Maritime Transportation Needs of Brazil for Development Technology Qualified people How to access these opportunities?
Brazil Ocean Economy Where to search for opportunities? Market Segments: Offshore Oil & Gas Exploration; Shipbuilding; Maritime Transportation; Aquaculture; Fishiries; Coast Guard and Patrol; Research and Maritime Observation; Turism;
Oil & Gas Industry The Global Perspective Until recently it was a monopoly: Petrobras; 4th largest company in the world; Basically 90% of its reserves and activities are offshore; The new context of the industry: the advent of the pre-salt; Reserves until 2007: 15 billion barrels Initial potential of pre-salt reserves: 100 billion barrels Petrobras Business Plan: goal 4.2 million barrels / day by 2020 (nowadays 2.022 million barrels / day)
Oil & Gas Industry - Pre-salt x Post-salt Reservoirs Post-salt reservoirs ( Sandstones) 0 Water Depth ~2240 m 1000 2000 3000 Rock salt 4000 5000 Pres-salt reservoirs 6000 7000 8000 9000 20 km Carbonate Rocks 10000 11000
Oil & Gas Industry Petrobras investments during the 2012-2016 Period: Implementation Vs. Evaluation 2012-2016 BP US$ 236.5 Billion 980 projects Under Implementation = All E&P projects in Brazil and projects of the remaining segments in phase IV* US$ 208.7 Billion 833 projects + Under Evaluation Projects for the remaining segments currently in phase I, II and III. US$ 27.8 Billion 147 projects E&P RTM G&E Petrochemical Distribution Biofuels Corporate
Oil & Gas Industry - Production Curve in Brazil Thousands bpd Baleia Azul (Cid. Anchieta) Baúna e Piracaba (Cid. Itajaí) Piloto Sapinhoá (Cid. São Paulo) Piloto Lula NE (Cid. Paraty) Papa-Terra (P-61 e P-63) Roncador III (P-55) Norte Pq. Baleias (P-58) Roncador IV (P-62) Sapinhoá Norte (Cid. Ilhabela) Iracema Sul (Cid. Mangaratiba) Iracema Norte Lula Alto Lula Central Lula Sul Franco 1 Carioca 1 Lula Norte Franco 2 Lula Ext. Sul Iara Horst NE Tupi Carimbé Aruanã Iara NW Franco 3 Franco 4 Sul de Guará Júpiter Carcará Sul Pq. Baleias Franco 5 Espadarte I Maromba Bonito Entorno de Iara Espadarte III Florim Production Units 19 up to 2016 38 up to 2020 2011 2,022 kbpd 5% Pre-Salt (Concession) 95% Post-Salt 30% Pre-Salt (Concession) Production Curve in Brazil Oil and LNG Production 2016 2,500 kbpd 1% 69% Post-Salt New Discoveries (*) Transfer of Rights Pre-Salt (Concession) 19% 2020 4,200 kbpd 12% 28% 42% Post- Salt
Oil & Gas Industry: Equipment and Materials Required for 2012-2017 Unit 2012 2013 2014 2015 2016 2017 Total Pumps un 899 1.737 942 381 96 331 4.386 Compressors un 174 54 51 23 40 45 387 Cranes un 23 25 24 8 7 6 93 Structure Steel (Ships Hull) t 205.100 45.600 31.750 29.600 70.900 70.900 453.850 Structure Steel (Plataforms Hull) t 140.000 364.000 224.000 112.000 140.000 112.000 1.092.000 Structure Steel (Rigs Hull) t 0 120.000 120.000 120.000 120.000 80.000 560.000 Flares un 11 12 8 6 4 5 46 Power Generators (13,8 kv) un 32 189 14 20 27 17 299 Power Generators (0,48 kv) un 158 0 0 0 0 0 158 Tanks un 253 180 68 55 39 89 684 Processing Towers un 101 119 53 0 5 17 295 Reactors un 114 71 0 0 4 0 189 Wet Christmas Trees un 141 117 132 114 200 244 948 Offshore Wellheads un 83 67 99 123 164 198 734 Dry Christmas Trees un 544 576 501 296 316 155 2.388 Onshore Wellheads un 550 580 503 296 333 181 2.443 Manifolds un 10 24 17 21 35 26 133 Umbilicals km 551 817 717 648 1.192 1.901 5.826 Tubing (Onshore) t 28.681 28.681 28.681 28.681 28.681 28.681 172.084 Tubing (Offshore) t 13.947 13.947 13.947 13.947 13.947 13.947 83.682 Flexible pipes km 769 1.409 1.493 812 1.637 2.416 8.536 Risers km 223 294 412 456 606 995 2.986 Turbines (Gas) un 41 38 18 12 16 26 151 Turbines (Steam) un 28 91 67 0 0 17 203 (**) This list does not exhaust all the equipment and materials required for 2011-2016 period.
Oil & Gas Industry: Equipment and Materials Required for 2012-2017 (**) This list does not exhaust all the equipment and materials required for 2011-2016 period.
Shipbuilding Brief History Very old industry in the country: since the sixteenth century. In the seventeenth century it was already considered one of the world's most important; Until the twentieth century, more specifically until the 70s, the industry was very heated with high technology; Crisis in 1979, scrapping the next decade and stagnation in 1990; 2000: beginning of the revitalization of the industry to meet the demands of Petrobras; Lula 2003 - Program prioritizing domestic shipyards; 2009: Brazil already had the fifth largest portfolio of projects in the world - Transpetro's fleet modernization;
Shipbuilding: Petrobras New Vessels and Platforms Resources required for production growth Critical Resources Drilling Rigs Water Depth Above 2.000 m Current Situation (Dec/11) Delivery Plan (to be contracted) Accumulated Value By 2013 By 2015 By 2020 20 35 33 (1) 68 (2) Supply and Special Vessel 289 423 479 568 Production Platforms SS e FPSO 48 56 63 93 Others (Jacket and TLWP) 77 78 78 81 (1) Two rigs reallocated from international operations, expire in 2015, so it is not considered in the 2020 accumulated value (2) The demand for long-term will be adjusted as new demand assessments are made. Supply Vessel Drilling Rigs Production Facilities (as FPSOs)
Shipbuilding: Nowadays Shipyards Suape Pernambuco CMO (Construcap McDermott Orteng) EAS Shipyard Atlantico Sul (expansão alocado para Sondas) Angra dos Reis - Rio de Janeiro TECHNIP Bahia Candeias GDK São Roque do Paraguaçu Canteiro São Roque PETROBRAS Paranaguá - PR TECHINT ODEBRECHT Canteiro de São Roque (Petrobras) CMO
Shipbuilding: Potential Construction Shipyards Aracruz - Espírito Santo Shipyard Jurong (Alocated for construction of Drill Rigs) Porto do Açu - Rio de Janeiro Shipyard OSX Coruripe Alagoas Shipyard EISA Alagoas SA São Roque do Paraguaçu - Bahia Shipyard Enseada de Paraguaçu (CNO/OAS/UTC) (alocated for construction of Drill Rigs) Rio Grande do Sul São José do Norte Shipyard SA (EBR) - Setal Rio Grande Shipyard Rio Grande (ERG2) (alocated for construction of drill rigs) EBR-Setal
Maritime Transport in Brazil: Brief Summary Coastline of 9198 km; Matitime modal little used. Roads are the primary means of production flow; Responsible for 11.72% of the cargo movement registered in the country; Maritime transportation not explored properly - only 16 ports with good capacity; Major Ports: Santos (SP), Itajaí (SC), Rio de Janeiro (RJ), Porto Alegre (RS), Paranaguá (PR) and Vitória (ES); High shipping costs per container; Few have a fast traffic; Deficient connection between maritime and road and rail transport; Growth possibilities in all directions are immense and multimodal transport goes in very slow pace.
Maritime Transport in Brazil: Major Harbor
Maritime Transport in Brazil: Harbor Efficiency
Needs of Brazil for Development - Technology Development of new technology to face the new technical chalanges for the exploration of the pre-salt feilds; Innovative solutions to increase the performance of the auxiliare activities logistics (goods and labor transportation, storage, etc.); Solutons for technological gaps related to certain activities of shipbuilding - manufacturing process of equipments, casting, forging, welding etc. 170 Km URG PML Z-1 Tupi Area
Needs of Brazil for Development - Qualified People Train and qualification of the labor for the activities of basic necessity of the large projects that will happen in the country.; Highly qualified people - 5.000 new engineers; Large investment in a fast and efficient training method of the labor. URG
How to access these opportunities? Suppliers Qualification & Register Search for an agent in Brazil; Adequacy to the national market characteristics local content issues, knowledge transfering; Establishment of partnerships with Brazilian companies; R&D development opportunities.- TCA and PI. URG
A business solution provider Contact Pedro Vassalo Maia da Costa (Director) Av. Jardim de Santa Mônica, 100 Bloco 8/803 - Barra da Tjuca Zip code: 22793-095. Rio de Janeiro, Brazil pedrovassalo@bblink.com.br +55 21 96039675 www.bblink.com.br