Brazilian mission to Norway:Brazilian mission to Norway:Oil & Gas Industry ExperiencesOil & Gas Industry Experiences

Oslo and Stavanger,

NorwayJune 2011

Contents Contents 1.1. The Brazilian DelegationThe Brazilian Delegation

2.2. The Brazilian Mission: HighlightsThe Brazilian Mission: Highlights

3.3. Brazil: Facts and FiguresBrazil: Facts and Figures

4.4. MDIC FrameworkMDIC Framework

5.5. The Brazilian Oil & Gas Industry: The Brazilian Oil & Gas Industry:

ChallengesChallenges

6.6. Final RemarksFinal Remarks

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1. The Brazilian Delegation1. The Brazilian DelegationInstitutionInstitution NameName FunctionFunction DepartmentDepartment

Ministry of Development, Ministry of Development, Industry and Foreign TradeIndustry and Foreign Trade

Carlos Eduardo Macedo Coordinator Coordination of Oil & Gas and

Shipbuilding

João Luis Rossi Foreign Trade Analyst Production Development

Secretariat Demétrio Florentino de Toledo

Filho Foreign Trade Analyst

Production Development Secretariat

Luciano Cunha de Sousa Technical Advisor Innovation Secretariat

Brazilian Presidential Chief Brazilian Presidential Chief of Staffof Staff

Beatrice Kassar Valle Joint sous-chef (joint

deputy chief)

Deputy Chief Office on Analysis and Monitoring of Governmental

Policies

Ministry of Mining and Ministry of Mining and EnergyEnergy

José Botelho Neto Director of Oil&Gas

Prospecting and Production Policy

Oil&Gas and Renewable Fuels Secretariat

Brazilian Agency for Brazilian Agency for Industrial DevelopmentIndustrial Development

Jorge Luis Ferreira Boeira Coordinator Coordination of Energy Projects Claudionel Campos Leite Coordinator Coordination of Eletronic Industry

Patrícia Helena Vicentini Director

The Brazilian and European Union Project to Support the

International Insertion of Brazilian SME

Carlos Nogueira da Costa Junior Specialist in

International Projects Department of Foreing Affairs

PetrobrasPetrobras Pedro Penido Duarte Guimarães Presidency Advisor Supply Chain Management

Improvement Network

Brazilian Micro and Small Brazilian Micro and Small Business Support ServiceBusiness Support Service

Eliane Lobato Peixoto BorgesOil&Gas Portfolio

National Coordinator Industry Department

Gustavo Reis MeloOil&Gas Portfolio

National Coordinator  Industry Department

Institute for Applied Institute for Applied Economic Research Economic Research

Fabiano Mezadre Pompermayer Research and Planning

Expert

Direction of Research on Innovation, Production and

Infrastructure

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1. The Brazilian Delegation1. The Brazilian Delegation Ministry of Development, Industry and Foreign Trade

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1. The Brazilian Delegation1. The Brazilian Delegation Brazilian Presidential Chief of Staff

Ministry of Mining and Energy

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1. The Brazilian Delegation1. The Brazilian Delegation Brazilian Agency for Industrial Development

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1. The Brazilian Delegation1. The Brazilian Delegation Brazilian Micro and Small Business Support Service

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1. The Brazilian Delegation1. The Brazilian Delegation Petrobras

Institute for Applied Economic Research

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2. The Brazilian Mission2. The Brazilian Mission

Objectives

1.Benchmarking on the Norwegian experience in the development of Oil&Gas clusters

2. Identify strategic variables to design sound public policy in the Oil&Gas field

3. Establish linkages amidst Brazilian and Norwegian public actors

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2. The Brazilian Mission2. The Brazilian Mission

Objectives

1.Benchmarking on the Norwegian experience in the development of Oil&Gas clusters

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3. Brazil: Facts and Figures 3. Brazil: Facts and Figures

Capital: Brasília Area: 8.502.728,269 km2 (5th) Population: 190.755.799 (2010) Urban population: 84,36% Rural population: 15,64% Annual Population Growth Rate: 1,17%

(2000-2010) Human Development Index: 0,699 (73rd)

(2010) GDP: US$1,57 trillions (2009) GDP per capita: US$8.114 (2009) Public expenditure in Education: 5,08% of the

GDP (2008)

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Competitive and dynamic industry which ranks among the world’s top

Leader in clean and renewable energy, such as ethanol

3rd largest market for cell phones, cosmetics and soft drinks

Largest consumer market in Latin America (190 mi inhabitants);

4th main aircraft manufacturer

5th largest market for personal computers

7th main automobile manufacturer and 4th largest consumer of automobiles.

3. Brazil: Facts and Figures 3. Brazil: Facts and Figures

Production of Oil (Bbl/day, 2009): 2.029.000

World position: 14th

World share: 2,53% Consumption of Oil (Bbl/day,

2009): 1.910.000 World position: 11th

World share: 2,30%

Source: ANP

OILOIL

Production of Gas (billion m3, 2009): 21,1

World position: 29th World share: 0,70% Consumption of Gas

(billion m3, 2009): 20,3 World position: 34th World share: 0,70%Source: ANP

GASGAS

The Energy Investment for the next 10 years: Liquid Biofuels Supply: US$38 bi; Electricity Supply: US$125 billion; Oil&Gas: US$391 billionSource: EPE/MME

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3. Brazil: facts and figures 3. Brazil: facts and figures

R&D CENTERS IN BRAZIL – WHO IS HERE

33. Brazil: facts and figures . Brazil: facts and figures

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Foreign Trade Chamber

CAMEX

National Development Bank

BNDES

Ministry of Development, Industry and Foreign Trade

MDIC

Foreign Trade Secretariat

SECEX

Productive Development

SecretariatSDP

InnovationSecretariat

SI

Trade and Service Secretariat

SCS

National Development Fund

FND

Manaus Free Trade Zone

SUFRAMA

National Institute of Metrology,

Normalization and Industrial Quality

INMETRO

National Institute of Industrial Property

INPI

Brazilian Micro and Small Business Support Service

SEBRAE

Brazilian Trade and Investment

Promotion AgencyAPEX

Brazilian Agency for Industrial

DevelopmentABDI

4. MDIC Framework4. MDIC Framework

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With an estimated length of 800 km and production capacity of 50 billion barrels of oil, the Brazilian pre-salt layer has become the centre of attention of the world‘s oil and gas industry and international investors.

Petrobras has invested more than USD 1 billion to drill 20 wells and evaluate the quality of the reservoirs

The pre-salt challenge is to drill through a 2 000 m salt layer, located at 7 000 m below sea level, approximately 300 km offshore Brazil’s east coast.

Pre-salt layer

5. The Brazilian Oil&Gas Industry: 5. The Brazilian Oil&Gas Industry: ChallengesChallenges

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Rock mechanics

Production in carbonate rocks

Mechanics of salt

High-resolution Geophysics

Pipelines resistant to high pressures and temperatures in

chemically hostile environments

New materials for coating of wells

Offshore structures engineering

Pre-Salt Technological challenges

NEW KNOWLEDGE DOMAINSNEW KNOWLEDGE DOMAINS

5. The Brazilian Oil&Gas Industry: Challenges5. The Brazilian Oil&Gas Industry: Challenges

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5. The Brazilian Oil&Gas Industry: Challenges5. The Brazilian Oil&Gas Industry: Challenges

Petrobras Business Plan 2010-2014: investment amount of US$224 billion

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1 – Increase the local content and

productivity in the O&G Supply

Chain 2 – Foster the innovation, improving

partnerships and getting rid of

technological gaps

3 – Expand the professional skills of the brazilian human

resources

4 – Balance the national tax and

technical conditions towards

international ones

5 – Boost the Brazilian firms

internationalization and the foreign

direct investment with technology

transfer

6 – Develop technological and industrial clusters

Sustainable and

Competitive Oil&Gas and Shipbuilding

National Industry

5. The Brazilian Oil&Gas Industry: 5. The Brazilian Oil&Gas Industry: ChallengesChallenges

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