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UK Energy in Brazil The Oil and Gas Industry in Brazil The view of a former Regulator Rio de Janeiro, March 11, 2013
UK Energy in Brazil
The Oil and Gas Industry in Brazil The view of a former Regulator
Rio de Janeiro, March 11, 2013
Brazil in The Global Competitiveness Report 2012/13
The Global Competitiveness Report 2012/2013 (World Economic Forum)
Brazil analyzed amongst 144 countries
Basic
requirements
Innovation and
sophistication factors
Efficiency enhancers
Key Indicators 1. Gross Domestic Product (GDP) –
Brazil Rank 6 with USD 2,492.9 billion
2. Population – Brazil Rank 5 with around 200 million
3. GDP per capita – Brazil Rank 52 with around USD 13,000
4. GDP as a share of world GDP – Brazil
Rank 7 with 2.91 percentage of world GDP
Brazil in The Global Competitiveness Report 2012/13
WEF SOURCE: International Monetary Fund, World Economic Outlook Database; national sources
Brazil - E&P Governance Framework
BRAZIL´S OIL & GAS BUSINESS ENVIRONMENT
Opportunities to Investors
(All Sizes)
Petroleum Law
(Concession Regime)
1997
2003
G&G Studies by ANP
2005
Bidding Rounds for
Small, Medium and
Large Companies.
2007
Start Local Content
Certification by ANP
2009
Stop Bidding Rounds
2011
80 Companies
as O&G Operators
2013
Restart Bidding Rounds
Government (O&G National Policy)
1997
Creation of ANP and CNPE
(Open Market
and Start Bidding Rounds)
Production Policy and PROMINP
2003
Regulatory Agency (Regulation and Monitoring)
Local Content Policy
2005
PRE-SALT
2007
Gas Law
2009
PSC Regime
2011
New Royalties Distribuition
2013
BRAZIL´S OIL & GAS BUSINESS ENVIRONMENT
Source: ANP – OIL, NATURAL GAS AND BIOFUELS STATISTICAL YEARBOOK 2011
Proved oil reserves, by location (onshore and off shore) – 2001-2010
31-Dec-2012 @ 14,524.23 million bbl
Brazil - E&P Roadmap
Brazil’s Oil & Gas Business Environment
Source: ANP – National Agency of Petroleum, Natural Gas and Biofuels
NNF’s Vision:
Main Considerations about Brazil’s Oil & Gas Industry
Potential Pre-salt Political and Economic Stability Domestic Market Regulatory Stability Local Content
Long Term Opportunities
NNF’s Vision:
Main Considerations about Brazil’s Oil & Gas Industry
Local Content
Petrobras’ View • Fully aligned with Brazilian
Government’s regulations and guidelines.
• Easy after sales and services • Simplified Logistics - Fast
substitution of spare parts; • Use of local language and
local currency • Development of Local
capability
Regulator’s View
(ANP) • Government Policy • Contractual clause
Main Considerations about Brazil’s Oil & Gas Industry
Capital Availability
Local Content
Investment Projects
Demand for Goods and
Services
Technological &
Delivery Capacity Gaps
NNF’s Vision:
Main Considerations about Brazil’s Oil & Gas Industry
Foreign Investors
International Goods and
Services Suppliers
Brazilian O&G companies/
Foreign O&G companies in
Brazil
Opportunity
GAPS
NNF’s Vision:
‘Brazilian companies means companies that have manufacturing
processes and after-sales services in Brazil, thus, creating jobs and collecting taxes in the country.
Main Considerations about Brazil´s Oil & Gas Industry
④ Acquire local
companies ② and / or ③
② Establish
Joint Venture with local
company with recognized
service / manufacturing /
capacity
③
Establish Joint Venture with local
company with services, products
and technology similar or
complementary to the investor’s
①
Establish
Manufacturing Plant or Service Unit in
Brazil
Conclusion
Main Considerations about Brazil’s Oil & Gas Industry
• Brazil possesses high potential. Yet, there is a mismatch between projects’ timeframe and current technical capacity.
• The country does not have enough time to develop its
national industry in order to meet the equipment and services needs of the Oil & Natural Gas and Infrastructure sectors.
• GREAT OPPORTUNITIES FOR NEW COMERS
