petrobras 2012-2016 business and management plan … - paulo alonso… · and management plan &...

Petrobras 2012 -2016 Business and Management Plan

&Brazilian Local Content

Regulation

Rio de Janeiro11th March 2013

Petrobras 2012-2016 Business and Management Plan

Brazilian Local Content Regulation

Investments in the Country driven to the Shipbuildi ng and Offshore Industry: US$ 107.6 billion

Refining, Transportation and CommercializationUS$ 71.6 billion

Biofuels

Petrochemicals

Expansion of FleetExpansion of Refining Park

Allocation of National Oil

Compliance with Internal Market

Operational improvement

Infrastructure and Support

Exploration

Production Development

Exploration and ProductionUS$ 131.5 billion

15.2(21%)

31.2(44%)

12.1(17%)

2.9(4%)

3.5(5%)

1.0(1%)

16.3(12%)

5.6(8%)

25.4(19%)

89.9(68%)

US$ 107.6 bi83.6

(64%)

21.1(16%)


4.200

2.500

2,022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Construction of 132 Units: Drilling Rigs, Stationary Production Units (SPU) and Tankers

Oil

and

NG

L P

rod

uct

ion

Cu

rve

(mb

pd

)Priority: OIL PRODUCTION, Brazil: 2.022 – 4.200 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

�2/2SPU

�10/10�4/4�2/2Rigs

�3/3Tankers

1/5SPU

1/1Rig

3Tankers

4SPU

8Tankers

1SPU

8Tankers

7SPU

7Rigs

8Tankers

7SPU

7Rigs

5Tankers

7SPU

5Rigs

2Tankers

3SPU

7Rigs

5Tankers

2SPU

2Rigs

6Tankers

(1 unitdelivered) (9) (12) (9) (23) (20) (15) (17) (10)

(21 units delivered)

(2 units delivered

and 7 to be delivered)

4.200

2.500

2,022

2011 2012 2013 2014 2015 2016 2017 2018 2019 202010101010

Cid. São Paulo

(Piloto de Sapinhoá)

Cid. Paraty

(Piloto de Lula NE)

P-61 P-63

(Papa-Terra) P-55

(Roncador mod. III)

Cid. Anchieta(Baleia Azul)

Cid. Itajaí(Baúna e Piracaba)

Z1Iracema

Norte

Espadarte IIICO9

(Florim)

MarombaBonito

CO8(Entorno de Iara)

19 by 201638 by 2020

P-58 (Norte Pq. Baleias)

P-62(Roncador mod. IV)

Cid. Ilhabela

(Sapinhoá Norte)Cid.

Mangara-tiba

(Iracema Sul)

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

38 Stationary Production Units (SPU): 2012 - 2020

Oil Production, Brazil: 2.022 – 4.200 mbpdO

il an

d N

GL

Pro

du

ctio

n C

urv

e (m

bp

d)

SPU Construction

4.200

2.500

2,022

2011 2012 2013 2014 2015 2016 2017 2018 2019 202011111111

Laguna Star(CO PAD Franco)

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)

Leblon(Franco Leste)Portogalo(Entorno de Iara)Salinas(Exploration)Boipeba(Exploration)Leme(Franco Leste)

Mangaratiba(Florim)Itaunas(Exploration)Interlagos(Exploration)Marambaia(Entorno de Iara)Botinas(Florim)Itapema(Iara NW)Siri(Exploration)

Comandatuba(Exploration)Sahy(Exploration)

* Being negotiated; ** P-59 and P-60 were constructed in Brazil

Drillship (33)

Semi Submersible(10)

Self Lift (2)

Oil Production, Brazil: 2.022 – 4.200 mbpd

45 New Drilling Rigs: 2012 - 2020

Oil

and

NG

L P

rod

uct

ion

Cu

rve

(mb

pd

)

Rigs Construction

25 by 201645 by 2020

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 RigCorcovado(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)

4.200

2.500

2,022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Zumbi dos Palmares(Suezmax

2/10)EAS

José Alencar(Products 4/4)

EISA Mauá

Suezmax 3/10EAS

João Cândido(Suezmax 1/10)

EAS

Sérgio Buarque de

Holnda(Products 2/4)

EISA Mauá

Rômulo Almeida

(Products 3/4)EISA Mauá

Suezmax 4/10EAS

Panamax 1/4EISA Mauá


Suezmax 5/10EAS

Gaseiro 1/8Promar


Suezmax 6/10EAS

Gaseiro 2/8Promar

Suezmax 7/10EAS


Gaseiro 3/8Promar

Suezmax 8/10EAS

Produtos 1/3EISA Mauá

Gaseiros 4/8Promar

Produtos 2/3EISA Mauá

Gaseiros 5/8Promar

Gaseiro 6/8Promar

Suezmax 9/10EAS

Products 3/3EISA Mauá

Gaseiro 7/8Promar


Suezmax 10/10EAS

Gaseiro 8/8Promar


Aframax 1/5EAS



Aframax 2/5EAS


Aframax 3/5EAS

Aframax 4/5EAS

Aframax 5/5EAS

Suezmax DP 1/4

EAS

Suezmax DP 2/4

EAS

Suezmax DP 3/4

EAS

Bunker 1/3Superpesa

Suezmax DP 4/4

EAS

Bunker 2/3Superpesa

Aframax DP 1/3

EAS

Aframax DP 2/3

EAS

Bunker 3/3Superpesa

Aframax DP 3/3

EAS

49 Tankers: 2012 - 2020

Oil

and

NG

L P

rod

uct

ion

Cu

rve

(mb

pd

)

Oil Production, Brazil: 2.022 – 4.200 mbpd

12121212

Celso Furtado(Products 1/4)

EISA Mauá

Tankers Construction31 by 201649 by 2020


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 CONTENTTarget: 75%Actual: 90%

Northeast Refinery (RNEST): 1st Phase in November/14


� 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


Brazilian Local Content Regulation

Why Local Content?

Potential GainsFor the Country For the Oil Companies

Local Economy Diversification

Sustainable Economic Growth

Increase Country´s Attractiveness for Investors

Local Productive Capacity Development

Proximity between Suppliers and the Operation

Reduced Dependence on Expatriated Workforce

Suppliers Innovation Capacity Increased

Logistic Risks Reduction

Operating Costs ReductionEmployment and Income Generation

Local Technical Assistance Availability

Tax Revenue Increase

Local Content

Brazilian Local Content RegulationRequirement in the Concession - Agreement with ANP

1 2 3 4 5 8

ANP Oil Field Concession Bidding Rounds

6 7

Before 1998 – Petrobras Monopoly

1998 – Round zero, no Local Content Commitment

0 109

1st to 4th Round:

• Minimum Local Content

requirements determined by ANP;

• Proof of local content by Declaration

of Origin and Invoice;

7th to 10th 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;

5th and 6th Rounds:



according to:

o phase (exploration /

development)

o block type (deep water,

shallow water, onshore);



1999 20052003

� 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)

1 2 3 4 5 8

ANP Oil Field Concession Bidding Rounds

6 7

Before 1998 – Petrobras Monopoly

1998 – Round zero, no Local Content Commitment

0 109

1st to 4th Round:


requirements determined by ANP;



7th to 10th Round:

• Minimum and Maximum Local Content


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;

5th and 6th Rounds:



according to:

o phase (exploration /

development)

o block type (deep water,

shallow water, onshore);



1999 20052003

� 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)

Petrobras criteria for measuring and

requiring local content for all contracts

(E&P, Downstrean, Gas & Energy)

independent of obligation with ANP

Brazilian Local Content RegulationRequirement in the Concession - Agreement with ANP

Source: ANP

Example of Local Content requirements by item and subitem

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, ...

Brazilian Local Content RegulationDetailed Local Content Requirements

Subsystem Item Subitem % LC

I .1 Dri l l ing Rig Chartering 50

I.2 Dri l l ing + Completion 49

I.2.1 Wel lhead 60

I.2.2 Cas ing 50

I.2.3 Production Tube 50

I.2.4 Wel l equipment 50

I.2.5 Dri l l 5

I.3 Auxi l iary 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 ca l Measurement System 60

I.3.5 Field Ins trumentation 40

I.4 Logis tic Support 50

I.5 Chris tmas Tree 70

I - Drilling,

Assessment and

Completion


I I .1 Umbi l ica ls 55

II.2 Mani folds 70

II.3 Flexible Production/Injection Lines 56

II.4 Rigid Production/Injection Lines 50

II.5 Flowl ines 100

II.6 Underwater Control System 0

II .7 Bas ic Engineering 50

II.8 Detai led Engineering 95

II.9 Management, Cons truction and As sembly 80

II – Production

Collection System


II I .1 Bas ic Engineering 65

II I .2 Deta i led Engineering 65

II I .3 Management, Construction and Assembly 65

II I .4 Hul l 70

II I .5 Jacket n/d

II I .6 Naval Systems 65

II I .7 Simple Anchoring Systems 65

II I .8 Mul tiple Anchoring Systems 65

II I .9 Modules Integration 65

II I .10 Pre-Insta l lation and Hook-up of Anchoring Li nes 65

II I .11 Plants - Bas ic Engineering 65

II I .12 Plants - Deta i led Engineering 65

II I .13 Plants - Service Management 65

II I .14 Plants - Equipment and Materia ls 71

II I.11.4.1 Pressure Vessels 85

II I.11.4.2 Forges 80

II I.11.4.3 Tanks 90

II I.11.4.4 Process Towers 85

II I.11.4.5 Cool ing Towers 85

II I.11.4.6 Hea t Excha ngers 15

II I.11.4.7 Pumps 70

II I.11.4.8 Steam Turbines 80

II I.11.4.9 Rotary Screw Air Compressors 70

II I.11.4.1 Al terna tive Compressors 70

II I.11.4.11 Diesel Engines (up to 6 HP) 80

II I.11.4.12 Valves (Up to 24") 90

II I.11.4.13 Fi l ters 85

II I.11.4.14 Flare System 80

II I.11.4.15 Cathodic Protection 90

II I.11.4.16 Electri c System 60

II I.11.4.17 Automation System 60

II I.11.4.18 Telecommunication System 40

II I.11.4.19 Fi sca l Mea surement System 60

II I.11.4.20 Field Instrumentation 40

II I .15 Plants - Construction and Assembly 65

III - SPU

• 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 - 2005

Brazilian Local Content RegulationLocal Content Booklet (“Cartilha”) – Main Concept

Platform

Goods

Vapor Recovery

Unit

Injection Gas

Compression Unit

Filters

Package

Compressor

Motocompressor

Panel

LC= 34,2%

Brazilian Local Content RegulationCertification Process

ILLUSTRATIVE

Suppliers EPCSub-Suppliers

INV+

LCC

INV+

LCC

INV+

LCC

INV+

LCC

INV+

LCC

INV+

LCC

INVOICE + LOCAL CONTENT CERTIFICATEINV

+

LCC

� The percentage of local content is calculated based on the imported quota of the item;

� Thus, it is not necessary that the suppliers/EPC in form their profit margin;

� Moreover, there are confidentiality clauses between the certifying entity and suppliers/EPC

Certification required throughout the supply chain

Contribution Margin = Equipment Price / Unit Total Price

Price: US$ 10 MM

LC=30% -> Local Parcel: US$ 10 MM * 30% = U$ 3 MM

Contribution Margin: 10 MM/19 MM = 53%

Price: US$ 2 MM

LC=70% -> LP: US$ 1.4 MM

CM=10%

Price: US$ 7 MM

LC=30% -> LP: US$ 2.1 MM

CM=37%

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%

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 22nd, 2011

� Ensure adherence to capital discipline, assuring the competitiveness of procurement and reducing financial and logistical risks in implementation and operation of projects.

Capital Discipline

� Execute procurement in a coordinated manner for the items of common use.

Integration of Supply

� Uniform criteria for measuring and requiring local content in Petrobras acquisitions.

Local Content Standardization

in Petrobras

� Encourage the development of local markets in a sustainable manner.Local Suppliers

� Prioritize supplies with local engineering development.National Engineering

� Encourage the development of the local market to overcome technology gaps.

Technology Gaps

DR

IVE

RS

26262626



Upstream

Local content requirements

established in oil field concession contracts

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

Refining




provide them

Gas & Energy




provide them

Gas & Energy




provide them

Petrobras Local Content Policy determines that all business

areas must achieve minimum local content on its activities

Contract Requirement

with ANP

ProminpO&G Brazilian Industry Mobilization Program

www.prominp.com.br

“Maximize goods and services national industry content,

within competitive and sustainable bases, in the

implementation of oil and gas projects in Brazil and

abroad.”

PROMINP – “O&G Brazilian Industry Mobilization Program”

Objective

Technological Center of

Shipbuilding and Industrial

Assembly

aware of the

problems and

possible solutions

solutions

incorporation by companies

What exists?

Industry Challenges

Implementation

Instrument of

mapped solutions in

companies

What we

need?

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

ProminpO&G Brazilian Industry Mobilization Program

Technological Center of Shipbuilding and Industrial Assembly

Thank you!

Paulo Alonso

[email protected]

www.prominp.com.br

petrobras 2012-2016 business and management plan … - paulo alonso… · and management plan &...

Documents