Embed Size (px)
Citation preview
The Success Stories –Lessons from Experience
309416427
593614624660
809908919945
1.2671.4481.484
SinopecRepsolStatoil
ENILukoil*Yukos*
ConocoPhillipsPetrobras
TotalChevron Texaco
Petrochina*Shell
BPExxonMobil
6.3434.026
2.9982.7472.708
2.2022.1952.114
1.2231.1751.139
524296
2.275
XOMRDS
SinopecBP
TOTCOP
PetroChinaCVX
PetrobrasYukos
RepsolLukoil
ENI**Statoil8,0
9,010,1
11,512,212,212,313,114,214,615,1
19,620,8
32,7
RepsolShell
StatoilENIBP
TotalSinopec
Chevron TexacoConocoPhillips
PetrobrasExxonMobilPetrochina*
Yukos*Lukoil*
3,33,84,3
6,89,4
11,111,511,812,113,0
17,618,5
20,122,4
RepsolSinopec*
StatoilENI
ConocoPhillips
TotalShell
PetrobrasChevron Texaco
Yukos*BP
Petrochina*Lukoil*
ExxonMobil
Publicly traded peer comparisonProven reserves (SEC - billion boe) – Dec. 2005 Oil and gas production (million boe) - 2005
Reserve life (years) – Dec. 2005 Refining capacity (thousand bpd) -2005
Source: Evaluate Energy and
7th
5th
9th
7th
Natural GasNatural Gas • Gas Sales: 52 million cu.m/day
Exploration andProductionExploration andProduction
• Proven Reserves: 11,8 Billion boe (SEC 2005)• Oil and Gas Production: 2,22 million boed (2005)
PetroquímicaPetroquímica• Ethylene Production: 460 thousand tons/year• Estirene Production: 250 thousand tons/year• Polyestirene Production: 120 thousand tons/year
• 6.933 service stations (34% of the Brazilian market) • More than 850 centers in South America (Argentina,
Uruguai, Paraguai, Bolivia and Colombia)DistributionDistribution
Refining, Transportation andTrading
Refining, Transportation andTrading
• 16 Refineries • Capacity: 2.214 mil bpd• Pipeline: 30.343 km • Vessels (Own fleet): 50
An integrated energy company with a Gross Income of US$ 76.5 billion, US$ 10,3 billion in net income, US$ 17,6 billion in EBITDA (2005 BR GAAP)
General View of CompanyGeneral View of Company
E&PMARKETINGHEAD OFFICE
SUPPLY
Houston
Colombia
Argentina
Angola
UK
USA
BRASIL
Bolivia Rio de Janeiro
NigeriaVenezuela
EquadorPeru
Mexico
Tanzania
Iran
GAS AND ENERGY
China
AGENCIES
JapanNova York
Uruguai
Libia
Focused in Latin America and Atlantic Basin
Petrobras in the World Petrobras in the World
Singapore
Paraguai
Turkey
Majors Average *
2,735
3,176
4,793
4,329
1,630
1,579
National Oil Companies Average **
Petrobras2,296
2,114
Product Sales (thous. bpd)
Refining (thous. bpd)Production (thous. boed)
* Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF ** NOIC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach
*** 2004 figures, except for Petrobras (2005)Source: PIW Intelligence and Petrobras
2,217
3,400Year 2011
2011: New Refinery will add 200
thous. bpd capacity2010:
Pasadena Refinery revamp concluded – processing 70
thous. bpd of heavy oil
Vertical Integration Comparison
Liderar o mercado de petróleo, gás natural e derivados na América Latina, atuando como empresa integrada de energia, com expansão seletiva
da petroquímica e da atividade internacional.
Growth ProfitabilityGrowth ProfitabilitySocial and Environmental Social and Environmental
ResponsibilityResponsibility
Consolidate and increase
competitive advantages in
the Brazilian and South American
oil and oil products market
Develop and lead the domestic
natural gas market and perform in an integrated manner
in the gas and power market in South America
Selectively expand
international activities in an
integrated manner with the
Company’s business
Selectively expand interest
in the petrochemicals
market
Expand participation in biofuels market, lead the domestic
biodiesel production and increase
participation in the ethanol business
Operational, management, technological and human resources excellence
Lead the Latin American oil, natural gas, oil products and biofuels market, working as an integrated energy company, with selective expansion in petrochemical, renewable energy and
international activities.
Corporate Strategy
Corporate Strategy
Drivers Business StrategiesE&P• Focus on light oil and natural gas
production and reserve growthDownstream• Expand conversion capacity and improve
quality of refined products• Increase bio-refining capacity, biomass,
petrochemical and fertilizers businesses• Promote Brazilian biodiesel production and
export ethanolDistribution• Increase market-share in Brazil for oil
products and biofuelsGas & Energy• Develop and establish a profitable and
reliable natural gas market including LNGInternational• Expand E&P in Gulf of Mexico and Africa• Undertake investments in refining
conversion capacity and quality
Develop market and monetize natural gas reserves in Brazil
Reduce dependence on light oil and oil product imports
Improve oil product quality in Brazil and abroad
Reduce carbon intensity of operations and products
Drivers & Strategies
Exploit competitive advantage from deep water exploration technology abroad
Assure future demand and add value to heavy oil exports
2010214N 8
Corporate Governance Structure
Board Committees:
• Audit• Environment• Compensation and Succession
Management Committees:
• Downstream• E&P• Gas and Energy• Human Resources• HSE• Analysis of Corporate
Structure and Management• Information Technology• Internal Control• Information Security• Risk• Social and Environmental
Responsibility• Marketing and Brands
Rapporteur
Fiscal Council
Board of DirectorsBoard
Committees
Audit Board Ombusman
Strategic definitions and
supervision
Strategy execution and
development of operations
Executive Board
CEO
Officers
Business Committees
ManagementCommittees
2 , 3 7 42 , 8 1 2
5 5 1
7 2 4
7 4 2
1 8 5
2 7 8
3 8 3
2 0 1 5
F o r e c a s t
Oil and Gas Production• 632 thous. bpd of oil exports in
2011;• US$ 49.3 billion CAPEX in the
2007-2011 period;• 3 new refineries
1 , 6 8 4 1 , 8 8 01 , 5 4 0 1 , 4 9 3
2 5 0 2 6 5 2 7 4
2 8 9
1 3 3
1 6 1 1 6 81 6 3
8 5
1 0 1
9 49 6
2 0 0 3 2 0 0 4 2 0 0 5 T a r g e t 2 0 0 6
O i l a n d N G L - B r a z i l N a t u r a l G a s - B r a z i l
O i l a n d N G L - I n t e r n a c i o n a l N a t u r a l G a s - I n t e r n a c i o n a l
2,036 2,020 2,217 2,403
3,493
4,556Thousand boed
7.8% p.a.
7.5% p.a.
T a r g e t 2 0 1 1
30%
40%
50%
60%
70%
80%
1996 1998 2000 2002 2003 2004 2005
Employees Satisfaction Index
11
9,69,4
9,5
10,4
2001 2002 2003 2004 2005
% of Women in Management Positions
HR Practices in Petrobras• Gender Commission• Ambiance Survey• Ethics Code• Woman Assistance Program• Petrobras University – 154
hours per year average of training per employee
• Personal Performance Management
• New employees training• Leader Performance
• Result: 3,17% turnover• Petrobras chosen by university
students as the dream company*
goal
Human Resources
* Source: Research accomplished in 2005 by RH Júnior Consulting
0
1
2
3
4
5
6
bp Shell Total ExxonMobil Petrobras
• Fatal and serious accidents videoconferences
• HSE Alerts
• Communication of the blockage actions implemented
• Indicator audit and scope analysis
• Leadership Training: Systemic Accidents, Incidents and Deviations Investigation
• Best Practices Seminar – 1,300 professionals
• Behavior audits
* Lost Time Injuries Frequency– number of accidents involving leave from work per million man-hours of risk exposure.
The performance measured by LTIF* and Fatalities has been improving as a consequence of the implementation of best practices, such as:
0
10
20
30
40
50
60
bp Shell Total ExxonMobil Petrobras
2002200320042005
LTIF*
Number of Fatal Accidents
n.a.
n.a.
Health and Safety
Programs NUMBER OF
PROJECTS
AMOUNT INVESTED IN 2005 (US$)
Education and professional qualification for youth and adults
102 20 MILLION
Employment and income creation 111 11 MILLION Children and adolescents rights guarantee
27 4 MILLION
Social endeavor 181 7 MILLIONAdvanced Program of Assistance and Treatment of Disabled People
15 1.5 MILLION
Others 8 254 THOUSANDChildhood and Adolescence Fund payment
311 17 MILLION
Total 755 60 MILLION
Community Investments
More than 2000 volunteer workers in more than 1,200 projects
• Total Investments from 09/2003 to 12/2006 : US$ 125 million*
*Free conversion using average exchange rate
Energy Security And Sustainability:What’s On The Horizon?
'Clean' Energies & Energy Sustainability: What Can the Private Sector Do? Where Are the Constraints?
BiofuelsIn Brazil
Renewable Sources 44.7%
Hydroelectricity14.4%
Uranium 1.5%
Coal 6.7%
Natural gas 8.9%
Other renewable sources 2.7%
Wood 13.2%
Sugarcane 13.5%
Petroleum and derivatives 39.1%
100% = 218.6 millions [toe] Source: Brazilian Energy Balance (2006)
Brazilian Energetic Matrix Brazilian Energetic Matrix Brazilian Energetic Matrix
0.42
1.90
2.82
1.53
0.900.95
0.00
0.50
1.00
1.50
2.00
2.50
3.00
1 2 3 4 5 62000 2001 2002 20052003 2004
Spills – cubic meters
HSE Excellenc
e Program
PEGASO
PipelineIntegrity Program
HSE CorporateGuidelines
PSP – Process Safety Program5,983
269MPL* 2011 = 601 m3
Oil and LNG Production (Mbpd)
1,846
1,323MPL* 2011 = 137,210 t
151,617
158,620
SOx Emissions – tonsEco-efficiency of
Operations
*MPL = Maximum Permissible Limit
Insurance Premium/ Insurance Value
Land use in BrazilType Area
(Mha)• Total country• Native Amazon Forest• Secondary Amazon Forest and Others• Native Forests• Pasture• Temporary Cultures• Permanent Cultures• Available land• Available land with low impact (*)
851370180
6197
597.626390
Source: FAO, 2002 and EMBRAPA (*)
2007-2011 Investments 2011 Target
Biodiesel Plants Availability of 855 Thous. m3/year
H-Bio (Bio-Refining) Processing 425 Thous. m3/year of vegetable oil
Wind Power
PhotovoltaicAdditional 240 MW Installed Capacity of
Power Generation from Renewable Sources
Alcohol pipelines3.5 million m3 Ethanol Exports
Alcohol Vessel Project
Other Renewable Energy Sources
Investments of US$ 0.7 billion in development of renewable energy sources and biofuelsPetrobras currently has 280 MW of renewable energy installed capacity
Renewable Energy and Biofuels (2007-2011)
Investment 2007-2011 Goal 2011
Bio-diesel Plants Availability of 855 Thousand cu.m/year
HBio (Bio-Refining) Vegetable oil Processing1,033 Thousand cu.m/year
Aeolic Energy
Solar EnergyInstalled Capacity of Generation of
Electric Power from 240 MW RenewableSources
Alcohol pipelinesExport of 3.5 million cu.m/year of Ethanol
Alcohol Project Vessel
Other Sources of Renewable Energy
Renewable Energy
Biofuels StrategiesBiofuels Strategies
Total investments in energetic development of renewable sources andbiofuels of US$ 0.7 billion
2005to
2007(2% allowable)
2008to
2012(2% required)(5% allowable)
From 2012on
(5% required)
Brazilian market0 – 5.2 million barrels
Petrobras market share0 – 1.3 million barrels
Brazilian market5.2 – 15.7 million barrels
Petrobras market share1.3 -3.8 million barrels
Brazilian market15.7 million barrels
Petrobras market share3.8 million barrels
Law 11.097/2005 – established minimal percentage for biodiesel mix in diesel
Future Markets for Biodiesel
• Petrobras target for 2010: Production of 8,200 bpd of Biodiesel• Two new experimental units of biodiesel (Guamaré – Rio Grande do Norte), which have received investments of R$ 19 million in research & development until now, will produce up to 300 bpd of biodiesel.
Biodiesel Demand(Thousand cu.m/year)
240
620871 898 926 958 993
2.571 2.666 2.771
0
500
1.000
1.500
2.000
2.500
3.000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
Biodiesel Estimated DemandBiodiesel Estimated Demand
5% Mandatory5% Mandatory
2% Mandatory2% Mandatory
ANPPublic Sale
ANPPublic Sale
HBIO is a HBIO is a processprocess of:of:
• Oil Refining that uses vegetable oil as raw material to get diesel oil.
• Hydrogenation of the mixture diesel + vegetable oil
HBIOHBIO
HBIO Process in Refinery HBIO Process in Refinery
OIL
FCC
Existing HDT
OTHER FRACTIONS OF DIESEL
DIESEL
DIESEL DD
DIESEL COKE
DIESEL FCCGas-oil
VacuumResidue
VEGETABLE OIL
Process HBIO
ATMOSPHERIC DISTILLATION
VACUUMDISTILLATION
DELAYED COKING
atmosphericresidue
Castor-Oil Plant Sun-flower African Oil Palm CottonSoy
Likely Output of Culture
1,500 kg/ha 1,500 kg/ha 3,000 kg/ha 20,.000 kg/ha 3,000 kg/ha
Percentage of Vegetable Oil
47% 42% 18% 20% 15%
Vegetable Oil Production (kg/ha)
705 630 540 4.000 450
Production in 2005 in Brazil cu.m/y90,000 23,000 5,600,000 151,000 315,000
Cargo Options for HBIO ProcessCargo Options for HBIO Process
SOURCES: Embrapa, MDA, IBGE, CONAB
CENPES HAS ALREADY TESTED IN A PILOT• CASTOR-OIL PLANT – SOY – BABASSU
• PALMISTE (SEED OF PALMA)• OURICURI
North and Central America
36%
Europe
9,8%
South America
36%
Asia
16,2%
Ethanol Global Market – 42 Billion LitersEthanol Global Market – 42 Billion Liters
Brazil35%
Brazil35%
Potential trading of Fuel Ethanol:1,5 Billion Liters (2006) → 7,0 Billion Liters (2010)
Reduction of the oil dependence
Energy diversification
Agribusiness development
Kyoto Protocol
Carbon Credit Opportunities
Driving Forces for Fuel Ethanol AdoptionDriving Forces for Fuel Ethanol Adoption
Ethanol InvestimentsEthanol Investiments
Goal: Export 3,5 MM cu.m/year in 2011
Logistic to export – New investments in pipelines, water way and vessels (US$ 454 MM)
Everything started in 1931Everything started in 1931Everything started in 1931
Ethanol addition into gasoline
1930 blending depending of the harvest yield
1979 20% v/v addition variable
1980 20% v/v addition continuously
1982 increase to 22% v/v continuously
1988 reduction to 18% in some regions
1993 blending by law (22% v/v)
2001 blending between 20 to 24% v/v (*)
2002 law fixing the addition of 20 min. to 25% max. v/v*
2003 launched flex-fuel-vehicles (FFV)
(*) in accord to ethanol availability
Why ethanol became a fuel in Brazil?Why ethanol became a fuel in Brazil?Why ethanol became a fuel in Brazil?
Brazil was an oil importer
The two oil shocks had an enormous impact in the Brazilian economy
Looking for an alternative and internal solution
Development demands energy consumption
Arable lands availability
First car operating 100% ethanol (Fiat) – 1979
Ethanol: Learning CurveEthanol: Learning CurveEthanol: Learning Curve
Trend (Rotterdam Gasoline Prices)
Prof. Goldemberg, Coelho, Nastari and Lucon - USP
Trend(Anhydrous Ethanol Prices)
More than 400 types of Sugar-Cane
Fuel Ethanol Program EvolutionFuel Ethanol Program Evolution
Ethanol: 30 years of experience Ethanol: 30 years of experience Ethanol: 30 years of experience
Program for oil imports reduction Environmental Benefits
70’s 80´S 90´S
EthanolProgram
Implanted(BLENDS)
Gasohol and Ethanol Cars(2nd oil shock)
Program of Emission Controls
(PROCONVE)Gasohol and Flex fuel Cars
00´S
RenewableHydrogen
Future
Regulation and PoliciesRegulation and PoliciesRegulation and Policies
DistributorsFuels - LPG
Oil Derivates
Ethanol Anhydrous and
Hydrouso
Cars
Trucks
Transport Companies
Air Companies
Industries
Farms
Residence
End Users
T.R.R.304 Mills
Biodiesel
Diesel
EthanolGasoline
Jet
Fuel Oil
Lubricants
LPG
Petrol Station
Diesel for Agricultures
Airports
Sales
LubricantsRetail
LPG Retail
T.R.R.
3 Petrochemicals13 Refinares
1 Formulator
Importers
T.R.R.Biodiesel Producers
Biodiesel
Brazilian Brazilian DistributionDistribution SystemSystem
Marine Terminal Rio de Janeiro
Marine Terminal São Paulo
New Ethanol Pipeline (800 km)
New Water Wayfor Ethanol Ethanol Export
8.0 Million m3 in 2012
Ethanol Logistic to Export
