minister eduardo braga brazil - texas chamber of …...apr 01, 2019 · ministério de minas e...

Ministério de Minas e Energia

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Minister Eduardo Braga

Brazil - Texas Chamber of Commerce - BRATECC May/2015

http://www.recortecole.com.br/links/BandeiraBrasil.gif


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• World’s 7th largest economy;

• Investment grade

• Fiscal adjustment taking place;

• Inflation being controlled;

• Large and diversified productive sector;

• Abundant natural resources;

• High infrastructure investment

• Consolidated democracy;

• Solid macroeconomic foundations;



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Top 5

Source – Brazilian Planning Ministry



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Installed capacity 133,912 MW Transmission lines 125,833 km

Maximum recorded consumption 85,708 MW (02.05.2014)

Structural balance - No shortage, even with the most severe hydrology for two years

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2001

80,315 MW

2014

133,912 MW

67%Installed

capacity

2001

70,034 km

2014

125,833 km

80%

Generation Transmission (only 1% isolated)

Additional capacity required – 4.4 GW/y



Acelerating Contracted Projects

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Power

PlantsPeriod Capacity (MW)

522 2015/2019 38.425

Lines PerIodLenth

km

240 2015 / 2018 30.609



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• 2.8 million km²- with potential

for oil & gas discoveries

• 307.7 thousand km² granted

• 430 producing fields

• 110 E&P companies

Proved reserves (2013): 18.5 bn boe

PRE-SALT ESTIMATED RECOVERABLE

VOLUMES

only discoveries under development and

appraisal

from 40.1 to 50.1 bn boe (2014)



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Strong regulatory Agency;

Stable rules;

12 bid rounds on Concession Model, and 1 bid on Production

Sharing Model - full transparency - no claims;

All big companies are working in Brazil;

26 companies operating producing fields in Brazil;

Friendly environment for business – government support;

Huge potential for new discoveries;

No restrictions on oil exports – More than 500 thousand barrels per day

exported in 2014, by 17 companies – Petrobras 45%; other companies 55%.



900,000

1,100,000

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Brazilian Oil Production. Production growth – 116% in 15 years – 5.2% per year

More to come:

- Huge discoveries starting production in a few years;

- Amazing prospects to be offered in future bid rounds

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36% of the oil discovered worldwide in the last 5 years were in Brazil (22.9 bnbbl)

63% of the deep water discoveries in the last 5 years were in Brazil (22.2 bnbbl)

Brazilian Discoveries

63%

Others Discoveries

37%

Deepwater oil discoveries in the world - 2010-2014

Brazilian Discoveries

36%

Others Discoveries

64%

Oil discoveries in the world -2010 -2014

The three biggest discoveries in the last 10 years took place in Brazil Lula, Libra and Búzios

Source: Wood Mackenzie

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Source: FPSO.com; IHS Petrodata April 15th, 2015Brazilian PAC

>20% Of all FPSOs are in operation in Brazil

46% FPSO/Platforms under construction will go to Brazil

40 New FPSOs will be operating in Brazil in a few years (24 only for Buzios and Libra)

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Phase 1 - (ongoing):

- Amazing development of local industry;

- Operators Resistance:- Additional cost- Additional time

- Contracts being respected

Phase 2 – (to be implemented):- New scenario:

- Huge demand;- Prices variation

- Adjustments are required–we need:1. Competitive suppliers;2. Development of new suppliers;3. Investments in innovation- Contracts must be respected 14


http://www.google.com.br/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.gnbc.com.br/detalhenoticia.aspx?id=71c55eeb-f0ce-40a4-a013-11a4b697d98e&title=Arvore+de+Natal+Submarina+da+FMC+para+o+Pre-sal+recebe+Certificado+de+Conteudo+Local&ei=iEM6VZO1IsHBggTAlICoBw&bvm=bv.91427555,d.cWc&psig=AFQjCNHwKWqFJfpM2T30t48AaD9-e-CIYw&ust=1429968078021214


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1. Regulated Open Access to all existent pipelines before 2020;

2. New pipelines under concession regime – open season - all companies can contract capacity;

3. Demand growing fast – 50% provided by imported gas;

4. Spot LNG is responsible for 38% of the imported natural gas – local production is a great opportunity;

5. Local gas production for new electrical power plants are very welcome;



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1. The biggest Brazilian company is facing serious challenges – but the solution will come soon;

2. The company has full and unconditional government support;

3. The company continues to work hard and to overcome challenges:

• Pre-salt production – 674 thousand barrels/day – March

2015 – less than 9 years after the first discovery;

• Developing technologies;

• Winning awards;

4. Brazilian people remain proud of our most successful company.



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13th Bid Round

October 2015;

269 onshore and

offshore blocks;

Mature, new

frontiers and high

potential basins

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High Potential

NewFrontier

NaturalGas

Mature Basins



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13th Bid Round - Blocks

Basin onshore/offshore Potential Fluid Number of Blocks Coments

Amazonas onshore New Frontier gas 7 to be confirmed

Parnaiba onshore New Frontier gas 22 important gas discoveries

Potiguar onshore Mature oil and gas 71

Reconcavo onshore Mature oil and gas 85

Sergipe/Alagoas offshore High Potential Gas and light oil 10 Most important area

Jacuipe offshore New Frontier oil and gas 4 close to SE/AL

Camamu-Almada offshore New Frontier oil and gas 9

Espírito Santo offshore High Potential oil and gas 7 Amazing prospects

Campos offshore High Potential oil and gas 3 only shalow water

Pelotas offshore New Frontier oil and gas 51 Good Potential

Total 269



Concession Model - periodic rounds - considering:

The oil companies necessity;

The service companies demand;

The local industry capacity;

ANP studies on the areas;

Recent discoveries;

TARGET – Not more than two years without a bid

Production Sharing Model – rounds depend on:

Brazilian target for oil export;

The local industry capacity;

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Generation –New Investments

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Auctions

2nd Auctions for Reserve Energy Date: August 14th 2015

Source of energy: Solar Photovoltaic

3rd Auction for Reserve EnergyDate: 13 de novembro de 2015

Source of energy: Solar Photovoltaic e Wind

2015

1st Auction for Reserve Energy Date: may 29th 2015

Source of energy: Gas power plants

Auction A-3 Date: July 24th 2015

Source of energy: Hydro, Gas, solar and wind



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Transmission –New Investments

Date: June, July, September and December

4 Auctions in 2015

Total Extension

18,200 km

Transformation Capacity

33,600 MVA

Forecast Investiment

US$ 9 billions



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A good opportunity to invest:

if you are an oil company (13th bid round could be the path);

if you provide goods and services for oil companies;

If you want to generate energy;

If you want to invest in transmission

Huge potential for oil and gas – not only within the Pre-Salt polygon;

Many opportunities to generate energy from renewable sources

Stable regulatory framework and two strong Agencies;

Political stability:

Institutions working;

Free press;

Free manifestations



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minister eduardo braga brazil - texas chamber of …...apr 01, 2019 · ministério de minas e...

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