procurement policy and critical equipment supply - rio oil & gas 2012
TRANSCRIPT
PROCUREMENT
POLICY
AND CRITICAL
EQUIPMENT SUPPLY
DISCLOSURE & IMPORTANT NOTICE
The presentation may contain forecasts about future events. Such forecasts
merely reflect the expectations of the Company's management. Such terms
as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project",
"seek", "should", along with similar or analogous expressions, are used to
identify such forecasts. These predictions evidently involve risks and
uncertainties, whether foreseen or not by the Company. Therefore, the
future results of operations may differ from current expectations, and
readers must not base their expectations exclusively on the information
presented herein. The Company is not obliged to update the
presentation/such forecasts in light of new information or future
developments.
PRESENTATION SUMMARY
1. Business Plan
2. Pre-salt Overview
3. Local Content
4. Brazilian Companies
5. Relevant equipment demand for the period 2012-2017
6. Suppliers Qualification & Register
7. Conclusion
BUSINESS PLAN
Investments during the 2012-2016 period
US$ 208.7 Billion US$ 27.8 Billion US$ 236.5 Billion
28%
** E&P abroad
RTM E&P Petrochemical Distribution Biofuel Corporate G&E
60.0%
(US$ 141.8 Billion)
27.7%
(US$ 65.5 Billion)
1.3%
(US$ 3.0 Billion)
1.6%
(US$ 3.8 Billion)
1.5%
(US$ 3.6 Billion)
2.1%
(US$ 5.0 Billion)
5.8%
(US$ 13.8 Billion
24.8%
US$ 51.7 Billion
1.4%
(US$ 3.0 Billion)
0.9%
(US$ 1.9 Billion)
1.7%
(US$ 3.5 Billion)
1.8%
(US$ 3.7 Billion)
3.7%
(US$ 7.8 Billion)
17% (**)
(US$ 4.6 Billion)
50%
(US$ 13.9 Billion)
21%
(US$ 6.0 Billion)
5%
(US$ 1.3 Billion)
0%
(US$ 0.1 Billion)
7%
(US$ 1.9 Billion)
Under Implementation Under Evaluation + = 2012-2016 BP
All E&P projects in Brazil and projects of the
remaining segments in phase IV*
Projects for the remaining segments currently
in phase I, II and III.
833 projects 147 projects 980 projects
* Includes budget already designated for projects under evaluation for RTM, G&E, Petrochemical, Distribution, Biofuels and Corporate
65.8%
(US$ 137.2 Billion)
Programs supporting the 2012-2016 BP
2012-2016 BP
US$ 236.5 Billion
Cost
Optimization
Program
Increase of
Operational
Efficiency
Program in
Campos Basin
Local
Content
Management
Program
Integrated Management of the Company’s Portfolio | Safety and
Environment
Production Curve in Brazil – Post-Salt, Pre-Salt and Transfer of Rights
Pre-Salt (Concession)
5%
Post-Salt
95%
Transfer of Rights
1% Pre-Salt (Concession)
30%
Post-Salt 69%
New Discoveries (*)
12% Transfer of Rights
19%
Pre-Salt (Concession)
28%
Post- Salt
42%
Thousands bpd Norte Pq.
Baleias (P-58)
Roncador IV
(P-62)
Sapinhoá
Norte (Cid.
Ilhabela)
Iracema Sul
(Cid.
Mangaratiba)
Lula Alto
Lula Central
Lula Sul
Franco 1
Carioca 1
Lula Norte
Franco 2
Baleia Azul
(Cid. Anchieta)
Baúna e
Piracaba
(Cid. Itajaí)
Piloto Sapinhoá
(Cid. São Paulo)
Piloto Lula NE
(Cid. Paraty)
Papa-Terra
(P-61 e P-63)
Roncador III
(P-55)
Iracema
Norte
Lula Ext. Sul
Iara Horst
NE Tupi
Carimbé
Aruanã
Iara NW
Franco 3
Franco 4
Sul de Guará
Júpiter
Carcará
Sul Pq. Baleias
Franco 5
Espadarte I
Espadarte III
Florim Maromba
Bonito
Entorno de Iara
2011
2,022 kbpd
2016
2,500 kbpd
2020
4,200 kbpd
Production Units 19 up to 2016
38 up to 2020
(*) Includes new opportunities in blocks where discoveries have already been found
Oil and LNG Production
PETROBRAS: Reserve Replacement Ratio > 100% for the 20th consecutive year
Brasil
Other Discoveries
Deep Waters
34 billion bbl
Brazil
32%
19%
49%
New
Dis
cove
ries
200
5-2
010
• In the last 5 years, more than 50% of the
new discoveries worldwide were made in
deep waters. Brazil accounts for 63% of
these discoveries.
• Projections indicate that as Brazil develops
these newly discovered reserves, it will
lead non-OPEC supply growth until 2030
(PFC Energy).
Petrobras: Proven Reserves in Brazil (billion boe)
• Reserve/Production 19.2 years
• Reserves Incorporated in 2011
Total: 1.24 billion boe
Pre-Salt: 1 billion boe
20
05
+164%
20
10
19
91
7.53
19
95
20
00
13.23
20
11
+3%
9.65
5.96
15.28 15.71
E&P Investments
2012-2016 Period
Exploration
US$ 25.4 Billion
Production Development
US$ 89.9 Billion
8%
(2) 69%
(17.5)
24%
(6)
Transfer of Rights
Post-Salt
Pre-Salt 49%
(43.7)
34%
(30.2)
18%
(16.0)
Besides Exploration and Production Development, E&P investments in infrastructure total US$ 16.3 billion
BUSINESS PLAN - 2012-2016
More information about the Business Plan 2012-2016 at:
• http://www.investidorpetrobras.com.br/2012-2016-business-
plan.htm
PRE-SALT OVERVIEW
WHAT IS PRE-SALT?
Corcovado Hill
Located in a remote area, up to 300 km offshore
Total depth from 5,000 to 7,000
meters
Salt layer more than 2,000 meters thick.
Pre-Salt Layer New Exploratory
Border
Water depths that can exceed 2,000 meters
Post-Salt Layer Focus up to 2006
Large Oil Carbonatic Reservoirs
WHAT IS PRE-SALT?
WHAT IS PRE-SALT?
Drilling and Completion
Construction of high angle
wells, deviated into the salt
zone
Well integrity
Penetration rate in the
microbial carbonate
reservoir
New alloys to reduce costs
of well materials
PRE-SALT - SOME TECHNOLOGICAL CHALLENGES
WHAT IS PRE-SALT?
Reservoir
Reservoir
characterization
Rock fluid interaction
EOR
PRE-SALT - SOME TECHNOLOGICAL CHALLENGES
WHAT IS PRE-SALT?
PRE-SALT - SOME TECHNOLOGICAL CHALLENGES
Subsea
Flexible risers for water depth
of 2,200m (7,218 ft)
Flow assurance
Scaling control
WHAT IS PRE-SALT?
PRE-SALT - SOME TECHNOLOGICAL CHALLENGES
Floating Production Units
Mooring in 2,200m water
depths
Interaction with the riser’s
system
CO2 processing
LOCAL CONTENT
LOCAL CONTENT
Petrobras Local Content Policy
PETROBRAS LOCAL CONTENT POLICY
The projects and contracts of Petrobras
must withstand the challenges of the
Strategic Plan and maximize Local Content
in competitive and sustainable basis,
contributing to market development where
Petrobras operates, guided by ethics and
continued innovation.
LOCAL CONTENT
Legal Requirements
E&P Exploração e
Desenvolvimento: comprovações para
ANP para novos contratos de
concessão, partilha e cessão onerosa
Abast Não existe
exigência de Conteúdo Local.
Operadora declara meta e comprova índice realizado
G&E Não existe
exigência de Conteúdo Local.
Operadora declara meta e comprova índice realizado
Operating expenses are not subject to the requirements of the Local Content by ANP
E&P RTC There is no requirement to
Local Content.
The operating company
states its goal and proves
the percentage achieved
G&P Exploration and
Production:
Evidences to ANP for
new concessions
contracts, production
sharing and transfer of
rights
There is no requirement to
Local Content.
The operating company
states its goal and proves
the percentage achieved
Local Content Measurement and Monitoring Program
Bottlenecks identification and
industry mobilization
Objective Maximize the use of the Brazilian equipment and services industry capacity for
2012-2016 BP procurement demands, with schedules and costs aligned with best
market practices
Minimum Local Content
Planning of 2012 – 2016
BP projects
Local Content
Monitoring
Local Content
Measurement III I II
• Information on Industry Capacity
• Identification of imported goods and
services
• Identification of items for nationalization
• Implementation of Local Content Indicators
• Monitoring of local content in projects
• Actions for recovering occasional deviations in
schedule and costs
• Preparation of Execution Reports of Local
Content per project (forecast x executed)
• Updating data base for future projects
Motivation: Higher efficiency in maintenance and post-sales services, access to suppliers,
logistics cost optimization, reduction on transportation and delivery time.
Action Plan
Develop
Component
Supplier
Item X
Use local industry
National
demand is
enough to
justify adding
capacity?
(incremental or
new plant) YES NO
NO
Import
Item
components,
individually,
can improve
local content?
YES
NO YES
Is it
possible to
buy in
Brazil? 85%
Services Materials Equipment
Local Content –Downstream projects – Global Average Source: ONIP
60
40
20
0
99%
68%
52% 44%
Goods
(Eq+Mat)
Global
100
80
REFINERIES AND G&E DECISION MATRIX
Local Content Formula
% LC = Imported Portion 1- System Total Price
without tax
X100
HOW TO MESURE LOCAL CONTENT
PROMINP
HISTORY - 2003
PROMINP – Mobilization Program for the
National Oil and Natural Gas Industry.
Coordinated by the Ministry of Mines and
Energy, was established by the Federal
Government through the Decree nr. 4925,
dated Dec/19th, 2003.
Its main goal is to maximize the participation
of the national goods and services industry, on
a competitive and sustainable basis, in the
implementation of projects in the area of
petroleum and natural gas in Brazil and
abroad.
Construction of research centers in Brazil
50 Thematic Networks
At the UFRJ technological complex, 9 P&D
centers of important equipment and services
suppliers are already in construction/operation:
Other Companies with development plans for
technological centers in Brazil:
• Weatherford
• Wellstream
• FMC Technologies
• Usiminas
• TenarisConfab
• Schlumberger
• Baker Hughes
• Halliburton
• General Electric
• Vallourec & Mannesman
• Cameron
• IBM
• Technip
Source: E&P-CORP, May 25/2012 and CENPES, May 28/2012.
Petrobras partnerships with more than 120 universities and research centers
have led Brazil to have a prominent worldwide applied R&D complex
CENPES expansion (Mar/2012)
BRAZILIAN
COMPANIES
‘Brazilian companies’ means companies
that have manufacturing processes and
after-sales services in Brazil, thus creating
jobs and collecting taxes in the country.
BRAZILIAN COMPANIES
Definition
RELEVANT
EQUIPMENT
DEMAND
FOR THE PERIOD
2012-2017
INDUSTRIAL SECTORS PERFORMANCE ANALYSIS
17
16 18
20
19
21
15 14
9
13
2
3
4
11
10
1
12
22
23 24
6
5 8
7
Demand time spreading
O&G offer changing
Changes in production paths
Demand fulfillment
Productive Capacity
Low
M
ediu
m
Hig
h
Com
peti
tiveness
Legend
Sectors
1. Telecommunication 2. Substation and transformers 3. Generators and Motors 4. Electrical Distribution Panels 5. Automation 6. Pipelines 7. Mills 8. Steam Turbines 9. Winches 10. Valves 11. Flanges and Connections 12. Boilers Works 13. Subsea - Equipment 14. Subsea - Umbilical and
Flexible Pipes 15. Pumps 16. Alternative Compressors 17. Engines 18. Cranes (Onshore) 19. Engineering Services 20. Construction and Assembly 21. Instrumentation and
Measurement 22. Gas Turbines 23. Centrifugal Compressors 24. Electrical Motors (large
size)
Production capacity
expansion
Low Medium High
Degree of dependence of O&GI
30
Products Projects in Brazil
Subsea Pipelines
• NKT Flexibles
• New flexible pipe plant in Brazil in 2013.
• Technip
• Installation of new plant.
• Wellstream
• Current plant expansion in 2013 (60% capacity increase).
• Prysmian
• Plant expansion to produce flexible pipes.
• Butting
• Construction of a new plant for the production of line pipes.
Umbilicals
• Duco and Nexans
• Ongoing discussions to establish new plants in Brazil.
• Oceaneering (MSD)
• Current manufacturing capacity will double by early 2013.
• MFX
• 80% expansion in manufacturing capacity 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. 30
Local Content
Companies building capacity in Brazil
Local Content
Companies building capacity in Brazil
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 through partnerships, ongoing 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 expansion.
Automation
• Emerson
• Industrial expansion to assemble equipments in Brazil.
(**) This list does not exhaust all the equipment and materials required for 2012-2017 period.
Unit 2012 2013 2014 2015 2016 2017 Total
Pumps un 899 1.737 942 381 96 331 4.386
Compressors un 174 54 51 23 40 45 387
Cranes un 23 25 24 8 7 6 93
Structure Steel (Ships Hull) t 205.100 45.600 31.750 29.600 70.900 70.900 453.850
Structure Steel (Plataforms
Hull) t 140.000 364.000 224.000 112.000 140.000 112.000 1.092.000
Structure Steel (Rigs Hull) t 0 120.000 120.000 120.000 120.000 80.000 560.000
Flares un 11 12 8 6 4 5 46
Power Generators (13,8 kV) un 32 189 14 20 27 17 299
Power Generators (0,48 kV) un 158 0 0 0 0 0 158
Tanks un 253 180 68 55 39 89 684
Processing Towers un 101 119 53 0 5 17 295
Reactors un 114 71 0 0 4 0 189
Wet Christmas Trees un 136 158 191 217 203 229 1.135
Offshore Wellheads un 215 204 220 225 207 235 1.307
Dry Christmas Trees un 457 522 436 324 189 120 2.047
Onshore Wellheads un 458 522 436 324 189 120 2.049
Manifolds un 10 18 23 15 12 21 99
Umbilicals km 517 714 887 1.295 1.485 1.593 6.492
EQUIPMENT AND MATERIALS REQUIRED FOR 2012-2017
Unit 2012 2013 2014 2015 2016 2017 Total
Tubing (Onshore) t 28.681 28.681 28.681 28.681 28.681 28.681 172.084
Tubing (Offshore) t 13.947 13.947 13.947 13.947 13.947 13.947 83.682
Flexible pipes km 743 616 713 957 1.471 1.478 5.977
Risers km 210 173 311 441 544 682 2.361
Turbines (Gas) un 41 38 18 12 16 26 151
Turbines (Steam) un 28 91 67 0 0 17 203
Special alloys for tubing and
casings t 2.470 3.293 5.927 6.256 11.525 11.854 41.325
Turbo generators un 32 37 12 8 12 37 138
Polyester mooring cables km 182 249 319 113 170 114 1.147
Fiberglass pipelines km 425 128 353 353 353 353 1.966
Electrical cables for CSP km 9.562 8.487 10.073 10.363 0 0 38.485
Steam generators un 0 0 0 0 0 0 0
HCC reactors un 0 5 0 0 4 0 9
Special alloy boilers, reactors,
towers, and pressure vessels un 64 79 67 0 4 5 219
Heat exchangers un 7 61 63 65 0 0 196
Reformer Furnaces un 3 6 0 0 0 0 9
(**) This list does not exhaust all the equipment and materials required for 2012-2017 period.
EQUIPMENT AND MATERIALS REQUIRED FOR 2012-2017
SUPPLIERS
QUALIFICATION &
REGISTER
Petrobras Concepts &
Requirements Overview
SUPPLIERS QUALIFICATION & REGISTER
Petrobras Procurement Manual (MPC)
Item 4.1.6
(Approved by the Board of Directors)
Petrobras Procurement Manual (MPC)
Item 4.1.6
(Approved by the Board of Directors)
The Corporate Register is a database of Brazilian and foreign
companies interested in participating in bidding for Petrobras.
These companies, Brazilians or foreigners, are eligible to
provide to Petrobras high complexity services or
equipment/goods, which are under permanent Petrobras
interest.
Corporate Register
The evaluation approval, as part of the registration process,
ensures the incorporation of the company in the Petrobras
Corporate Register, obtaining the CRCC – Certificate of
Registration and Classification. Then, the company could be
invited to participate of new biddings.
SUPPLIERS QUALIFICATION & REGISTER
Corporate Guidelines
Complementary Corporate Guidelines
Requirements:
Legal
Economics
Technical Approval
Requirements:
Health, Safety & Environment - HSE
Management & Social Responsibility
SUPPLIERS QUALIFICATION & REGISTER
It is an “e-Procurement” portal, which provides tools for acquiring
goods and services for Petrobras System companies. In its
business platform are carried out several transactions ranging
from requests for quotes and sending proposals to
management of orders and contracting.
www.petronect.com.br
Petronect
http://www.petrobras.com.br/en/supplier-channel/
SUPPLIERS QUALIFICATION & REGISTER
Since April 2012 the “Suppliers Registration System” was incorporated to Petronect as a integrated tool and access point for
companies registration and bidding
SUPPLIERS QUALIFICATION & REGISTER
Company Access at
www.petronect.com.br
Identification Identification:
- Contact Information;
- Scope of Supply;
- Local Representative;
Questionnaire Criterias:
Technical;
- Legal;
- Economical;
- Managerial;
- Health, Safety &
Environment. Petrobras
Approval
Company Registration
in SAP Petrobras
Register Flow Chart
Registration
Certificate
sent
to Company
SUPPLIERS QUALIFICATION & REGISTER
Legal Requirements
Foreign Companies
Proof of being duly established and registered in
the country of origin;
Legal Representative in Brazil – the company must
provide its legal representative in Brazil (Power of
Attorney);
Letter stating that the company is not bankrupt or in
debt;
SUPPLIERS QUALIFICATION & REGISTER
Legal Requirements
Foreign Companies
Commitment Letter – Through this document the
company shall formalize its intention of being included
in Petrobras’ Corporate Register;
Commercial Representative (indicated by and linked to
the supplier):
Not mandatory, but advisable (may be the own
company)
May be the same or other than the legal
representative
SUPPLIERS QUALIFICATION & REGISTER
Economic Requirements
Brazilian and Foreign companies:
Annual Reports with Audited Financial Statements or
Balance Sheet and Income Statement
Financial statements of foreign companies must be prepared under
IFRS or USGAAP
Economic calculation formulas and acceptance criteria are public,
available online in the instructions.
SUPPLIERS QUALIFICATION & REGISTER
Health, Safety and Environment
Service Providers
ISO-14001 and OHSAS-18001:
Certification is not mandatory
Petrobras evaluates how the suppliers implement these
standards requirements (ranking from 0 to 10 points)
Goods Suppliers
Not required
SUPPLIERS QUALIFICATION & REGISTER
Management
Goods Suppliers
ISO-9001 certification is mandatory
Services Providers
Compliance to the requirements of ISO-9001 is
ranked from 0 to 10 points - certification is valued
SUPPLIERS QUALIFICATION & REGISTER
Those equipments or materials which performance in the
industrial process of Petrobras can threaten continuity,
compromise the safety of personnel, facilities and
environment, and those products that, included in the
industrial process as raw material, can jeopardize the quality
of the final product of the Company.
RQT Category of products - definition
(RQT - requires specific technical qualification)
SUPPLIERS QUALIFICATION & REGISTER
Tradition (Main Sales, Reference Letters)
Facilities for Technical Assistance (in the case of
Automation Systems, Rotating Machinery, etc)
Mandatory Product Certification (API, ASME, ...)
Other Specific Requirements
Technical Requirements for Materials & Equipment
Depending on the material or equipment, the supplier must
comply with the following requirements:
SUPPLIERS QUALIFICATION & REGISTER
Tradition (List of Services Provided – continuity
and Reference Letters)
List of equipment relating to services provided;
Main personnel curricula vitae
Other specific requirements
NOTE: in accordance to the Law, to render services in Brazilian
territory the company must have a subsidiary or partner
company in Brazil.
Depending on services criticality, the supplier must comply
with the following requirements:
Technical Requirements for Services
CONCLUSIONS
CONCLUSIONS
Petrobras has a robust projects portfolio, which is
atypical of the current economic situation.
There are huge opportunities for already installed and
newcomers in the Brazilian market of suppliers, service
and engineering companies due to the scale provided by
the project portfolio.
In order to carry out such a portfolio, Petrobras is
looking forward to establish long term business with
companies willing to invest in Brazil.
