Policy Development with Local Content

and Infrastructure Investment energetic

ECONOMIC DEVELOPMENT, ENERGY, INDUSTRY AND SERVICES STATE SECRETARIAT

With 45 years of experience, CODIN is the gateway for local and foreign investors and acts as a consulting office, providing support to those who are interested in investing in Rio de Janeiro.

Our marketing expertise allows a personalized assistance, responsible for analyzing and helping to provide tax benefits and financial credits.

CODIN

Rio de Janeiro that you already know or have heard about...

...and the Rio de Janeiro that you should also know about:

A fast growing economy with

plenty of business opportunities.

Panorama

Fonte: IBGE/FMI(2012), estimativas SEDEIS

Location: Southeast of Brazil (55% of national GDP) Area 43,696 km2 (0.5% of the Brazilian territory) Population 16 MM (8.4% of total) GDP US$ 240 Bi (10.8% of Brazil’s GDP) US$ 15,000 (GDP per capita)

Gross Domestic Product Per Capita

•Purchase Power Parity

Cross-country comparison with the State of Rio de Janeiro

Source: IMF / IBGE (2011)

Korea Taiwan Chile Brazil Mexico China

22,80 20,50 20,10

15,00 14,23

12,90 12,80 10,90 10,20

8,10

5,40

1,40

US$

mil

US$ (thousand)

April 2008

May 2008

June 2011

March 2010

December 2011

BBB - BBB - Baa 2 BBB - BBB-

A new moment in the economy

Investment Grade

31,0 28,1 30,3 32,7 23,4

35,2

54,3

70,2

100,6 100,5

0,0

20,0

40,0

60,0

80,0

100,0

120,0

Investments Forecast

Source: Decisão Rio (Firjan)

A new moment of investments US$ Bi

Sapucaia

Resende

Mangaratiba Angra dos Reis

Parati

Rio de Janeiro Niterói

Saquarema Arraial do

Cabo

Cabo Frio

Armação de Búzios

Rio das Ostras

Macaé

Quissamã

Campos dos Goytacazes

S.João da Barra

Italva

S. Antonio de Pádua

Itaperuna

B. Jesus de Itabapoana

Porciúncula

NORTE

NOROESTE

SERRANA

BAIXADAS LITORÂNEAS

CENTRO-SUL

METROPOLITANA

COSTA VERDE

MÉDIO PARAÍBA

Highways – 27.000 Km

Raillways – 3.000 Km

7 Ports

ESPÍRITO SANTO

OCEÂNO ATLÂNTICO BR-101

Santos – 535Km

BR-116 São Paulo – 429 Km

BR-040 Belo Horizonte – 434Km

BR-101 Vitória – 514 Km

Salvador – 1654Km

BR-116

- 10 Domestic - 02 Internacional

12 Airports

Infrastructure and Logistis

Local Content

Local Content • The share of participation of domestic industry in providing goods

and services for a certain enterprise;

• Goals of Program, elaborated together with companies from sector, will lead the maximization of participation of domestic industry in providing goods and services;

• Competitive and sustainable basis, attending national and international demands;

• It involves to generate employment and income in the Country, by adding value in the local production chain.

Business Plan Petrobras 2013-2017

Source: Petrobras

Brazilian Shipbuilding Industry and offshore Industry

2013-2017 Period - US$ 236,7 Billion E&P

2012-2016 Period - US$ 131.6 Billion (*)

(*) Not including International E&P investments

Drilling Rig Systems

Production Systems

Supply boats

Jacket and TLWP

Tankers

65

94

568

83

148

E&P demand of Petrobras and Transpetro (Until 2020)

Source: Petrobras / Transpetro

Brazilian Shipbuilding and offshore Industry

Brazilian Shipyards Scenario

Source: SINAVAL

Order Book – general

Type Quantity

Production platforms 13

Constrution and Integration of modules 16

Drilling Rigs 28

Container Ships 3

Bulk carriers 5

Offshore support vessels 73

Product vessels 16

Tankers 26

Bunker ships 7

Gas tankers 17

Convoys (tugboat + barges) 142

Military vessels 10

Port tugs 17

Total 373

Brazilian Shipbuilding and Offshore Industry

Local Content

57,0% 62,2%

70,0% 74,3% 75,4% 75,6% 75,6% 74,6% 74,8%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: PROMINP

Local Content (%)

Years

Type Local Import Tanker 70,8% 29,2%

OSV 61% 39% FPSO 64,2% 35,80%

Most critical items for shipyards: Propulsion Motor above 650 HP; Cargo and ballast pumps; Navigation, communication and safety equipment.

Source: SINAVAL

Local Content for ships and platforms

Local Content - Offshore Companies building capacity in Brazil

Source: PETROBRAS

Products Projects in Brazil

Subsea Pipelines

NKT Flexibles New flexible pipe plant in Brasil in 2013.

Technip Installation of new plant.

Wellstream Current plant expansion in 2013 (60% capacity increase).

Prysimian Plant expansion to produce flexible pipes.

Butting Construction of a new plant for the production of pipelines.

Umbilicals

Duco and Nexanz Ongoing discussions to establish new plants in Brazil.

Oceaneering (MSD)

Current manufacturing capacity will double by early 2013.

MFX 80% expansion in manufacturing capcaity by 2013.

Subsea Equipment

Aker Increase of manufacturing capacity.

FMC Increase of manufacturing capacity and construction of a

technology center.

GE Expansion of the Jandira Plant and the construction of a new unit.

Cameron Industrial Expansion.

Source: PETROBRAS

Products Projects in Brazil

Turbomachines

Rolls-Royce Construction of new plant in Santa Cruz (Turbogenerators).

Dresser-Rand Construction of new unit in Santa Bárbara do Oeste

(Turbocompressors).

Offshore cranes MEP Pellegrini Working trough partnerships, ongoiing discussions to establish new

plant in Brazil.

Drill pipes V&M do Brasil Adapting current units to manufacture pipes.

CRA Tubing V&M do Brasil Capacity to produce high corrosion-resistant alloys.

High diameter pipes

USIMINAS Current units under qualification.

Offshore steel structures

Metasa Industrial expansions.

Automation Emerson Industrial expansion to assemble equipment in Brazil.

Local Content - Offshore Companies building capacity in Brazil

Source: SINAVAL

1.430

18.000 25.000

39.155

1.900

19.000

40.000

62.000 70.000

100.000

1960 1970 1976 1979 2000 2006 2007 2012 2013 2017

Shipbuilding Industry Employment and Offshore Industry – Historical Series

Brazilian Shipbuilding Industry and Offshore Industry

28.823

1.207 4.031

18.498

6.360

1.052 656 38 470

Rio de Janeiro

São Paulo

Santa Catarina

Rio Grande do Sul

Pernambuco

Bahia

Ceará

Sergipe

Pará

Employment

Brazilian Shipbuilding Industry and Offshore Industry

Source: SINAVAL / SEDEIS

Rio de Janeiro – Shipbuilding and Offshore Industry

22 Shipyards representing: • 50 % of Brazilian’s work force; • 55% of the steel consumed in the country’s shipyards.

Source: SINAVAL / SEDEIS

Investments

• Oil production

1.4 million barrels / day (74% of the national

production)

• Gas production

27 million m3/ day (35% of the national production)

• Self sufficient in electricity

Installed capacity: 8,800 MW

Under construction

Seropédica Power Plant: 530 kW

Angra III Nuclear Power Plant: 1,350 MW

Energy Supply

0,0

1,0

2,0

3,0

4,0

5,0

6,0

2013 2014 2015 2016 2017 2018 2019 2020Brasil Rio de Janeiro

Brazil: 1.9 MM barrels/day

Rio de Janeiro: 1.4 MM barrels/day (73% of national production)

Sources: ANP. Forecast: SEDEIS * Includes pre-salt oil reserves

Oil Production

• Reserves: 80 billion barrels of light oil

• Investments: US$ 1 Tri

• Pre-Salt Extension: 800 km

• Three basins:

• Espírito Santo

• Campos

• Santos

Pre-Salt Oil Perspectives

Important center for post graduate education

(50 PhDs per 100,000 inhabitants)

Strong professional education network

6 technological education institutions

18 universities

22 technological centers

Research centers:

Biomedical

Engineering

Energy:

Oil and Gas

Electricity

Metropolitana

Noroeste

Norte

Serrana

Baixadas

Litorâneas

Médio-Paraíba

Centro-Sul

Fluminense

Costa Verde

Legend Universities University Centers Technological Education Centers

Human Resources

Sources: MEC, CNPQ

Technological Development Technology Park - UFRJ

Fonte: UFRJ (2013)

Sapucaia

Mangaratiba Angra dos Reis

Parati

Rio de Janeiro

Niterói Saquarema Arraial do

Cabo

Cabo Frio

Armação de Búzios

Rio das Ostras

Macaé

Quissamã

Campos dos Goytacazes

S.João da Barra

Italva

S. Antonio de Pádua

Itaperuna

B. Jesus de Itabapoana

Porciúncula

NORTE

NOROESTE

SERRANA

BAIXADAS LITORÂNEAS

CENTRO-SUL

COSTA VERDE

MÉDIO PARAÍBA

METROPOLITANA

ESPÍRITO SANTO

OCEÂNO ATLÂNTICO

Infrastructure US$ 24,2 Bi

Industry Transformation US$ 19,2 Bi

Olympic Games US$ 4,1 Bi

Tourism US$ 0,9 Bi

Petrobras US$ 51,0 Bi

Petrobras US$ 51 Bi

Nissan US$ 1,3 Bi

PSA Peugeot

US$ 0,8 Bi

Shipyard OSX US$ 3 Bi

Marine Supply Base US$ 1 Bi

Gerdau US$ 0,6 Bi

Hospitality US$ 0,7 Bi Events

US$ 4,1 Bi

Transport US$ 3,5 Bi

Açu Port US$ 1,4 Bi

Rio Port US$ 0,7

Bi

Total Investiments 2012 - 2014

US$ 100 Bi

Major Investment Projects

Main Projects

São João da Barra

Campos Três Rios

Macaé

Naval Caju São Pedro da Aldeia

Médio Paraíba

Metropolitana

Serrana

Noroeste

Centro- Sul Baixadas

Litorâneas

Costa Verde

Norte

São Gonçalo

Quatis

Automotivo Resende

POLINAVE Santa Cruz

Palmares Caxias

Queimados

Paciência Campo Grande

Ilha Bom Jesus Nova Iguaçu

Naval Niterói

Volta Redonda

Barra Mansa

Logístico Cabo Frio

Arco Metropolitano

Posse Especial Nissan

New projects

Açu

DI São João da Barra

Maricá

Preliminary perspective

POLINAVI – Industrial Logistic Pole of Ship Parts, Offshore and Subsea of Rio de Janeiro’s State

Useful lot – 2.019.000 m² Infrastructure – 301.000 m² Expansion Area – 325.000 m² Preservation Area – 1.310.000 m²

(33%)

ZEN4 – Area Industrial

highway

new Highways

shipyard STX OSV

BR Offshore Logistics and support base

Terminal Alupar

shipyard Eisa

Shipyard Cassinu

shipyard BR Offshore Infraestrutura

Navigation Channel Sand by pass

BR Offshore Shipyard repairs

Barra do Furado

• Investment of U$ 8.4 billion • Employment generation 200.000 direct and indirect jobs • Capacity to process 165,000 barrels of oil per day

COMPERJ - Petrochemical Complex in Rio de Janeiro

Porto Maravilha

• Fruit Production

• Ornamental

Stones

• Foresty

Development

Primary

Sector

• Automotive

• Steel Industry

• Shipyards

• Petrochemical

• Oil & Gas

Industry

• Reinsurance

• Tourism

• Hotels

• Information

Technology

• Entertainmen

• Film

Production

• Concerts

Services

• Real Estate

• Sanitation

• High Speed

Train

• Airport

Infrastructure

Opportunities in Rio de Janeiro

20

11

450-year anniversary

20

12

2

01

3

20

14

2

01

5

20

16

Rio + 20

Agenda & Global Visibility

Thank you!

codin@codin.rj.gov.br

www.codin.rj.gov.br Tel: +55 (21) 2334-1400

Fax: +55 (21) 2334-1416

Our Contacts:

gabinete@desenvolvimento.rj.gov.br

www.desenvolvimento.rj.gov.br Tel: +55 (21) 2332-8311

Fax: +55 (21) 2332-8316